Rapid shifts in supply chains, like COVID-19, are forcing data scientists, analysts, and business leaders alike to invest in data science and analytic technologies.
Companies keep looking for individuals who have logistic management training. Its because these individuals can spot a complication. They then proceed to provide the best possible solution. It’s nice to study a course that is quite relevant to business dynamics.
According to Carlos Cordon in his article, Today’s globalized supply chain network has been optimized to identify minimum lead times at the lowest possible price. Logistics hubs will re-emerge at the regional level. To eliminate single-source dependencies, and to establish a flexible and adaptable supply chain, product integrators, sub-system suppliers and component suppliers will source, assemble and deliver from their own backyards.
Top recruitment site Indeed recently posted a story on the importance of supply chain management. The journey from idea creation to end product is a complicated process with many moving parts. How well a company manages this process can directly translate into increased revenues.
Supply chain management, or commonly known as SCM, is the process of overseeing how goods and services evolve from idea creation and raw materials into a finished consumer product. It includes the processes of moving and storing the materials used to produce goods, storing the finished products until they sell, and tracking where sold products go so that you can use that information to drive future sales.
The process of SCM involves every aspect of business operations, including logistics, purchasing, and information technology. It integrates materials, finances, suppliers, manufacturing facilities, wholesalers, retailers, and consumers into a seamless system.
Some of the functions of SCM include:
- Design and plan the supply chain when the business is established.
- Carry out the plan and carefully control the variables.
- Monitor the performance of each part of the supply chain.
- Communicate regularly with supply chain partners and ensure their participation in the plan.
Supply chain management seeks to streamline every part of the chain and the processes involved. By doing so, profits are maximized and product defects are minimized.
A well-managed supply chain can significantly reduce a company’s operating expenses, therefore driving up profits. This efficiency can be reflected in every aspect of the chain, from idea creation to the marketing of the final product.
Supply chain management works by coordinating procurement, suppliers, manufacturing facilities, retailers, distributors, and customers as they move together through the production, sales, and buying cycles. The supply chain requires active management because it is affected by many factors outside the control of the business, such as gas prices and environmental conditions. When a company is acutely aware of those factors, it can manage them more effectively. With effective SCM, inventory, production, distribution, sales, and vendor inventory are all tightly controlled.
SCM means managing costs at every step and delivering goods to consumers as quickly as possible. It assumes that every product that is for sale exists because of the various participants in the supply chain.
The benefits of supply chain management
When done effectively, supply chain management helps a business gain a competitive advantage by delivering products more quickly to customers. Here are a few ways in which SCM accomplishes this without requiring the company to lower prices:
- SCM lowers the cost of doing business. This is accomplished by reducing purchasing and production expenses.
- SCM builds partnerships that can support future growth. If you, as the grocery store owner, develop strategic partnerships with farmers early in your business operation, then the farmers can grow their operations as you grow yours.
- SCM helps balance the supply of products with market demand. Using the grocery store example, if you are buying tomatoes directly from the farmer, you can better negotiate and adjust how many tomatoes you buy each season.
- SCM allows more efficient and effective customer service. This occurs because customers receive their products quickly and as promised. For example, if the farmer brings the tomatoes directly to your grocery store, then the product will likely be fresher and less damaged than if it traveled through a third-party supplier before arriving on your shelves.
The ultimate goal of effective supply chain management is higher profits through improved customer satisfaction and a lower cost of doing business. Profits are healthier when costs are controlled and reduced wherever possible. Operating costs go down when the costs of raw materials and production go down.
The future of supply chain
It belongs to the companies that focus on a strong analytics strategy built around Analytics Process Automation (APA) which converges three key pillars of automation and digital transformation to enable the democracy of data and analytics, the automation of business processes, and the upskilling of people for quick wins and transformative outcomes.
Within the supply chain, data accessibility and automated process are critical at every step of the analytic lifecycle to quickly respond to market shifts and mitigate risks.
As technologies arise, so do the need to upskill the people throughout the supply chain ecosystem, from the shipping docks to logistic management.
Ready to update your SCM skills? Our 34-week Post-graduate Diploma in Supply Chain and Logistics Management will get you ready for a career in supply chain and logistics. You could be eligible for the Second Career funding option by the Ontario government. If qualified, you may receive up to $28,000 in funding for tuition and other expenses. So fill in this assessment form and reach out to our team at [email protected]