The efficient delivery of products and services relies on proper supply chain management, or SCM. Many international businesses around the world use SCM to carry out operations, marketing, custom packaging, project management and even human resources. A supply chain includes an establishment’s system of people, activities, and resources involved in the movement of goods or services from a supplier’s end to customer premises.
Using this description, supply chain management can then be defined as the efficient handling of supply chain activities to address consumer needs and maintain a competitive advantage. Speaking of keeping an edge, here are some wise means to enhance this aspect of business operations:
Product and Consumer Segmentation
Dividing goods and customers into specific segments is a great way to leverage your logistics plan. By tailoring supply chain solutions to each customer segment, you can help your firm eliminate unnecessary inventory and maximize on-shelf availability. This is one of the major keys of supply chain management – to maximize inventory for the business model.
Integrating logistics and purchasing processes allows seamless delivery of products or services. This can be done by aligning the objectives and the operational goals of both functions. To successfully integrate the operations and purchasing sides of the business, your company can implement enterprise resource planning software. This is commonly known as ERP software, supporting purchasing and resource planning.
Transparency and Information Sharing
The sharing of valuable operational data among the key players in the supply chain would greatly improve the whole process. Properly implementing supply chain management, you can share information with project managers as well as front line employees. This big data can be used to make executive decisions by CEO’s who just might have an MBA or PhD in supply chain. Moreover, if information transparency is maintained, the flow of essential resources would be a lot better.
Making a supply chain function better would also depend on the proper management of all the people involved in the process. Enhancing the competencies of an organization’s workforce would hugely help in positively transforming the chain. In international businesses, your supply chain management strategy can be a common language to allow human resource management to communicate priorities. Rather than taking a blackboard approach, everyone can see what is going on in real time.
Tapping the help of outsourcing service providers can also provide a huge help in augmenting the capacity of supply chain management. Entrusting some key logistic functions to supply chain professionals would ultimately improve service levels and customer satisfaction. Eventually, you will want to train your own employees to become supply chain managers too.
Other smart initiatives companies can take to master supply chain management efficiency include bettering driver-based metrics, carefully managing service demand, and exhausting the value-based management scheme. Overall, it would make a huge difference for commercial establishments to work on improving all the aspects of its operations to drive more business success.
Image from http://www.pepperlaw.com/events/manufacturing-supply-chain-management-best-practices-in-2016-beyond-2015-12-03/