How does efficient supplu management increase the competitiveness of a firm?

How does efficient supplu management increase the competitiveness of a firm?
For ANY company holding high levels ofinventory is detrimental to their effectiveness. Holding high stock levels costs huge amounts of money for the inventory, storage space and the labour to maintain that storage area. Costs are passed on through the supply chain from that point otherwise the company would go under through high debts.
Supply chain at this time try wherever possible to use the "just in time theory. This means that a company will only store small amounts a of a product if the "lead time" (the time to make and deliver that item) is lengthy. It is more preferable to establish with the people within the "supply chain" from creator to end user an order time. By doing so the user knows that they may have e.g. 5 days lead time for delivery - they will provide an order 5-6 days before required and order in for the 5th day - product arrives - is the used immediately leaving noting from that order - so no storage - The savings in doing this are enormous. these savings can be passed to the customer, and used by the company itself to build a profit.