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The most important activity in any organisation is the making and delivering goods. Only when the company delivers goods to the customer can it earn money and make profits. But it is not a simple task. The whole process of production and delivery is complex and has many tasks that you must perform successfully and efficiently. Efficient supply chain management brings profits and retains customers. Becoming proficient in the subject with certification courses in supply chain management can equip you with the necessary skills to manage the function.
One can learn everything about supply chain by enrolling on the Advanced Executive Certificate Course In Supply Chain Strategy And Operations Management. All details about this course are available on our website.
What Is Supply Chain Management?
Supply chain management involves managing all processes in converting raw materials to finished goods and delivering them to customers. It involves dealing with suppliers for raw materials and getting the best price from them. Supply chain management also deals with positioning various entities like suppliers, production facilities and distribution networks. The right place for each of these ensures a huge reduction in transportation costs. The supply chain manager must also manage warehouse facilities for stocking raw materials and finished goods. Certification courses in supply chain management teach participants to manage warehouses.
The other important job of the supply chain manager is managing inventory. An excess or short supply of any item can result in grave consequences. If there is a short supply of goods, the company cannot fulfil orders, which ends in losing customer confidence. Excess stocking of materials can increase expenses and reduce profitability. The other important aspect of the supply chain is transportation. Transportation costs form a major part of the cost of goods. It is important to manage the activity well. Certification courses in supply chain management also teach the importance of information flow in the chain.
Why Is Supply Chain Management Important?
Managing the supply chain is crucial because it is a function that involves activities that earn revenue and profits for the company. Only if the company can produce goods at an economical cost and deliver them on time to the customers can it make profits. All these activities come under supply chain management. Having efficient supply chain management ensures reduced cost of goods. The supply chain manager’s job is to find suppliers of raw materials who will sell good quality materials at competitive prices. It will help reduce the cost of goods.
By managing inventory optimally, supply chain officials can reduce inventory costs. When the inventory is optimum, it also ensures prompt production and delivery of finished goods, resulting in customer satisfaction. These professionals also make sure to find the most economical and fast transportation methods for quick delivery at low costs. They set up a good distribution network to make the goods easily accessible to the consumer. Experts who have attended certification courses in supply chain management know the use of the latest tools to manage the function well and ensure overall efficiency.
Why Do Companies Need Efficient Supply Chain Management?
- Better Collaboration
As we know, supply chains contain various elements that need to remain connected. Information flow is very important for cost reduction and prompt deliveries. The information must flow both ways to ensure the efficient delivery of goods. Information from the market helps forecast sales and plan production. Information about the availability of raw materials or their shortage helps the company plan inventory to ensure production is not affected. The production team must also convey messages about the production schedule to the warehouse to ensure space availability.
Good supply chain management ensures sharing of information, resulting in better collaboration between the different components of the supply chain. Transporters and logistics managers must keep in touch regularly to ensure that goods reach the customer on time. It also helps find the cheapest means of transport and reduces costs. Good interaction between the purchase manager and supplier results in a prompt supply of raw materials. The company can know about shortages or price increases of raw materials. The certification courses in supply chain management teach how company officials must share information to improve efficiency.
- Better Quality Control
Good quality is not something companies can compromise on in these times of highly competitive markets. Any deficiency in quality will lead to a loss of customer confidence and, subsequently, a sharp decrease in the customer base. Quality must be maintained as promised by the company. With efficient supply chain management, you can achieve it easily. Keeping a keen eye on the production ensures no deviations from the prescribed process. It will ensure good quality of the finished goods. Certification courses in supply chain management stress the need for control of the production process.
The quality of raw materials is reflected in the quality of finished goods. Good supply chain management means that raw materials are checked for quality, and if there is any deviation, the materials are returned. SC managers prescribe quality standards that suppliers must follow. To an extent, this will ensure that the suppliers maintain them. In many companies, it is also standard practice to test a sample from every batch of materials received. It will ensure that there are no quality issues with the finished product.
Also Read: Major Decision Areas In Supply Chain Management
- Managing Increased Demand
Markets are not always steady. Demands can go up or come down drastically due to various reasons. Both these mean trouble for the company. A decrease in demand can mean excess stock of finished goods and raw materials remaining with the company. It will result in excess expenses and a reduction in profits. The company must have advanced information about such an occurrence. Modern supply chain management methods use data effectively to predict such events. Certification courses in supply chain management teach the use of data analytics to predict fluctuations in demand.
An increase in demand can be happy news for any company. But it must be prepared to meet the rise in demand for the product. Even a small increase in the demand from the user can make the distributors and retailers order a much higher quantity from the company. The organisation must be prepared to produce and deliver the goods on time to their distribution network. It is possible by the prompt flow of information from the market to the company. Predicting demand spikes using current data analysing methods helps the firm to be ready to meet the increased demand.
- Reducing Transportation Costs
Transportation costs form a major portion of the product cost. The company has to include the cost of bringing raw materials to the company and delivering goods to the customer. If these costs rise, it could increase the cost of goods. A price increase will result in the company losing its competitiveness in the market. Good supply chain managers will keep looking for different transportation options that can help reduce costs. SC managers can also look at having more facilities to stock goods so that the number of times goods are transported can be reduced.
Certification courses in supply chain management teach students to look at changing packaging quantities to reduce transportation costs. In some cases, companies can save money by sending bulk quantities to a distributor and getting them to deliver goods to the customer. Many last-mile options can also help reduce transport costs. When planning production and storage facilities, efficient supply chain managers will consider the cost of transporting goods. Such measures can greatly help the company reduce transportation costs and increase profitability.
- Reduce Overhead Costs
A lean operation helps reduce overhead costs and improve profitability for the company. The organisation can also decide to pass on the savings to the customers resulting in increased sales. Supply chain management helps to reduce overhead costs in various ways. Inventory is one of the major expenses for the company. Using good analytics, SC managers can accurately predict market demands and stock more fast-moving products. They can reduce the inventory for slow-moving items resulting in improved savings. Certification courses in supply chain management are the best programmes to learn more about reducing overheads.
Changing the warehouse layout and methods of stocking goods can also save a lot of expenses. It will rescue the number of people required to handle goods. Using automation solutions, the company can reduce employee requirements and save money. There are other advantages to reducing human interference. There will be fewer errors, and work will be much faster with machines. Modernising machines and equipment can reduce production time and improve efficiency. Smart SC professionals will constantly look for new techniques to improve efficiency and reduce costs.
You will understand the importance of managing a supply chain in the Advanced Executive Certificate Course In Supply Chain Strategy And Operations Management. More details about this course and the topics that the programme deals with are available on our website.
Benefits Of Studying Supply Chain Management
Excellent Career Growth
As we all know, the recent pandemic resulted in many people losing their jobs. But the one profession that gained more importance is supply chain management. Companies face various challenges in delivering goods to customers. SC professionals found innovative ways to reach goods to customers. This benefited both the company and the buyers. The supply chain is a function that will never lose its importance as long as there is a product to be delivered. Attending one of the good certification courses in supply chain management can assure you of a rewarding career.
Attractive Salaries
Just because you feel passionate about a profession doesn’t mean you don’t worry about how much it will pay you. Everyone looks for jobs that pay good salaries. As the need for supply chain management doesn’t end, you can expect a steady demand for SC professionals. New technologies are emerging in this field, creating a need for highly qualified supply chain professionals. If you have completed any certification courses in supply chain management from a reputed institution, you can be sure of getting a handsome salary.
Easy To Enter
Because of the number of opportunities arising in this field, it is easy to enter the supply chain profession. There are very few barriers for someone to get into a supply chain job. Most companies don’t even ask for specialisation in this field. A basic management degree will see you get a job at the entry-level. However, specialising in the subject by attending certification courses in supply chain management will help you advance quickly up the corporate ladder.
Also Read: What is the difference between logistics and supply chain management?
Wide Choice Of Industries
A supply chain job doesn’t bind you to any industry. As the requirements are similar in most industries, it is easy for you to switch jobs from one company to another. You don’t have to worry about vacancies being available in the same industry where you work presently. It is easy to look for excellent opportunities in any company, both within the country and abroad. This profession allows you to experience different work conditions. You can also put your ideas to work immediately if you are joining a small-sized company and earn the management’s patronage.
A Challenging Job
If you are the type that is looking for challenges in your job, then supply chain management is the one for you. SC professionals face challenges literally on a daily basis. There are so many components in this function that something can go wrong somewhere every day. It allows you to use your skills and show your problem-solving capabilities. When there are so many challenges, the opportunities to move forward in the job are also plenty. To gain the skills needed for this job, you can join one of the certification courses in supply chain management.
Great Networking Opportunities
A supply chain consists of many people both inside and outside the organisation. You are constantly in touch with suppliers, transport operators and distributors. This gives you a great opportunity to network and expand your horizons. Such networking will allow you to learn new skills. You can also understand how other companies handle difficult situations. This job also allows you to meet people who can improve your opportunities for a better job. You can also learn about the salaries that companies offer for similar jobs.
Duties Of A Supply Chain Manager
Communicate Effectively
A supply chain manager must be able to communicate effectively as they need to convey various messages to different people in the chain. These professionals must speak with their vendors regarding supplies and the price of raw materials. They must get market information from their distributors and convey this to the production planning team. Attending one of the certification courses in supply chain management is the best way to acquire excellent communication skills.
Arrange Transportation
Logistics is a major part of any supply chain. SCMs must be able to arrange transportation for both raw materials and finished goods. If the goods are to be sent out of the country, they must familiarise themselves with export rules and regulations. It is not enough to ensure that there is a facility to carry goods. They must also see that the transport costs are kept low because they affect the cost of the goods.
Planning And Analysis
Planning is a vital part of supply chain management. These managers must plan the production of goods, their transport, the purchase of raw materials and space for stocking goods. These professionals must analyse the information they receive from the market and determine the sales volumes for the present and later. Their planning must also include resources like money, people and equipment. One can learn excellent planning skills in certification courses in supply chain management.
Inventory Control
Inventory costs can be very high if there is no proper control over them. Stocking raw materials and finished goods costs money to the company. The supply chain managers must take measures to ensure that there is no overstocking of any item. They must also see that there are enough stocks to fulfil all the orders. Supply chain professionals must know how to use the available space optimally and save money for the company.
Management
As their name suggests, one of the main duties of supply chain managers is to manage various entities in the chain. They must efficiently manage the purchase of raw materials and supply of finished goods. SCMs must be able to effectively manage the people in various jobs in the supply chain. They must also manage finances to see that there is cost reduction on all fronts. You can acquire excellent management skills in the certification courses in supply chain management.
The Advanced Executive Certificate Course In Supply Chain Strategy And Operations Management is an excellent programme to make yourself ready to embark on a supply chain career. You can learn all details about this course on our website.
Conclusion
The supply chain function in an organisation is probably the most exciting one. It has a lot of challenges and will provide opportunities to exhibit your skills. The job also has excellent growth and earning potential. But to become good at this job, you must possess all the necessary skills. The best way to acquire these capabilities is to enrol on courses that offer certificates that are recognised by top companies. The best courses are available online, and these enable you to study even while working.
More Information:
Supply Chain Design: What Is It And Why Is It Important?
What is Supply Chain Consulting? Meaning and Frameworks
Supply Chain Modeling: Types, Models and Best Practices
Supply Chain Management And Retail Industry: An Essential Relation
