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Supply chain management plays an essential part in the success of an entity's operations as well as its commitment to customer service and satisfaction. Because

Supply chain management plays an essential part in the success of an entity's operations as well as its commitment to customer service and satisfaction. Because of this, companies that do not maintain supply chains are likely not be in a position to satisfy the needs of their customers due to a number of factors. Virtual are likely not to be in a position to provide better customer service. For instance, they do not have an avenue to sort products, right stock location, right delivery time, and after sell services.

In addition, it is extremely difficult for such firms to reduce operating costs since they lack the supply chains to deliver expensive products cheaply. Supply chains also decrease the total cost of operations since they can be used in reversal manner. Since such firms are unable to cut costs, they are likely to be less profitable as compared to those that have strong supply chain management systems.

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