Have you ever come across two companies with practically the same goals, work management and operation. But almost always one of these does better than the other one.
Have you ever thought why that might be so? The answer is quite simple and staring on our faces, supply chain management. Supply chain management has the power to take your company to the next level. It is a pretty basic concept that every company, no matter how big or small, needs to keep in check for future success and betterment.
What is supply chain management?
But what exactly is supply chain management?
To put it simply, supply chain management or SCM is the gathering up of different commodities to meet one end goal. Supply chain management takes a lot of effort and work, but this is precisely what makes it so effective and crucial for the success of a company.
The purpose of supply chain management is to increase the efficiency of the supply side activities of a company. It can greatly impact and give your company a boost in the competitor market.
The idea behind supply chain management is that every product which ends up in the hands of a consumer is the result of work put in by several different people and organisations. Which consequently creates a “chain” of supply.
Controlling and Management of Supply Chain:
Supply chain management is a big task. But it is also one of the most crucial steps for any company that wants to make it to the top.
The controlling and management of the supply chain takes up a lot of effort from the team designed to perform said task. You need precision and accuracy at every interval to make sure everything runs smoothly and according to the plan.
Some of the most important things that can impact your supply chain management and control are given below.
- Be transparent in your dealings:
If you want to build trust among you and everyone involved in the business of the supply chain, you need to be transparent with your dealings.
You need to make sure that everything you put forward is true and no fault can be detected in it. People might not spot any funny business at the start, but sooner or later, it does become apparent which will greatly impact your reputation and business and that too not in a good way.
Transparency is the key to making sure the supply chain runs effectively and smoothly without any hurdles. Your entire range of procurement, sourcing and logistics operation should be well aware of all the policies and laws you want to apply.
- Plan risk management:
As a company, it is dire that you hope for the best but expect the worst.
You need to have a risk management plan ready at your disposal to make sure you are always updated with the laws and regulations you need to follow for your business to run smoothly and efficiently.
As a company, when you get into the business of supply chain, your job is not only to look for ways you can find the cheapest solutions to your needs but also be ready to act where it is needed.
You need to be well aware of the vulnerabilities, strengths, weaknesses, and capabilities of your suppliers and make arrangements keeping all the above-mentioned skills in mind.
You do not want to overburden a team that can not perform a certain task because this can lead to bad blood among the suppliers.
- Communicate with your team:
Communication is the key to all your worries. It is often we forget the importance of good communication but with your supply chain management, you must keep that in check.
Communication within the team is important at every stage of the supply of a product to the consumer.
Everyone involved in the supply chain of a particular product needs to be on the same page at all times to make sure that you not only get commodities at an attractive price but also supply it to the consumer at the earliest and in the most reliable time and manner. The suppliers, service providers, logistics managers, and unit operations, everyone needs to resonate on the same frequency to ensure proper working.
- Make use of technology:
The best thing about modern technology is that it makes our life easier and more effective. If you know how to leverage high tech technology then it can boost your company’s success by ten folds.
Technology is crucial to help you make it to the top of the supply chain industry. Good technology will not only help with effective communication but will also greatly impact how effectively your consumers receive their deliveries.
Unexpected or unforeseen circumstances can also be prevented or taken care of when you have the required technology at your disposal.
Good planning with the help of technology will also help keep your cargo in good condition and save it from damages.
- Honor contracts:
If you want to make it big in the supply chain industry, learn to honor contracts.
This is a no brainer, but often supply chain management can be put under the test regarding contracts. It is thus important that you build up a team that understands your requirements and fulfils them without any problems. Your team’s compliance to work is just as important as your need to honor contracts with your consumer. Make sure your team is on the same page as you at every interval of the procedure of supply chain management.
If there is anything that brings people together and works efficiently then that is a crisis.
The covid-19 pandemic is somewhat done and dusted. As the world shifts towards a more normalised lifestyle, it is crucial to look at and understand how much this pandemic affected our daily lives. One such effect has been on the supply chain industry and the logistics operation in the world. As we shift towards simpler times, the impact of new and improved methods will make a huge difference in how commodities are delivered to consumers and how many steps these commodities pass through before reaching their destination.