Why is supply chain management a critical marketing function to the firm?

Supply chain management involves a firm coordinating the various flows of components and products within the supply chain. This function leads to higher sales and profits for every member of the supply chain by controlling costs, such as inventory carrying cost, through greater coordination of decisions and activities. This activity also helps to control customer value that the supply chain provides. The key is to achieve supply chain integration where the coordination of activities across the supply chain increases the entire supply chain's performance, benefiting all members of the chain.