What is Supply Chain Management and Why is it Important?
Supply chain management is a wide area of functioning where each component is important. There are many companies managing supply chain business for enterprises located far and wide. The scale of operations usually differs but the practices are kept all the more same. To improve the overall functioning and limit the challenges faced by the supply chain managers, the continued innovation and improvement in operations is very much required.
Laying prime focus on tactics and methods to be followed makes the entire process more effective and helps in increasing customer satisfaction. The ways do not entail disturbing the logistical infrastructure, systems, and analytics but include enhancing the effectiveness with minor practices.
Improved level of communication along with the development of a performance-driven culture opens the channels for improved savings and service levels. Collaborative in nature, all the SCM practices must be targeted at an overall increase in output.
Below are Some Tips –
- Open Channels of Communication: Effective Communication is the key to effective supply chain management. It is important for the managers to stay interactive with the employees and convey organization goals in a clear and concise manner. This helps in maintaining harmony among all the related operations thereby escalating productivity. This can also be improved by taking daily and weekly meetings all dedicated to solving commonly faced problems.
- Compliance with Procedure Standards: For any process to function and executed effectively, it is important that there must be certain pre-stated procedures and standards. The supply chain management assignment is no exception to this rule. The common base of functioning and compliance with respective standards of working eliminates the chances of errors resulting in saving time and money. Managers must focus on reducing probable variation in areas like facilities management, shipping, quality control, and shift scheduling.
- Stating the Importance: It stands inevitable to communicate the importance of continuous improvement in a supply chain to the employees. The entire functioning depends on how employees invest their time and attention. To begin with, the managers must focus on enhancing the key performance indicators namely Safety, Inventory Accuracy/Turns, Service/On-Time Delivery, Productivity, Product Damage/Claims, and Customer Satisfaction.
Some More Tips –
- Work on Engaging, Synchronizing, and Empowering the Employees: For effectual supply chain management, it is important to upgrade the skills of employees. They must be imparted with confidence in order to gain the expected results. They must be involved and communicated the supply chain goals and must be encouraged to bring out suggestions to expand existing and future opportunities.
- Host Effective Training Programs: Once the employees understand the key goals, they must be introduced with the comprehensive plan detailing the ways to reduce costs, increase productivity, along with alleviating the level of customer service. All the members engaged in the supply chain play a vital role in making it a success. Thus, they must be kept aware of the ways in which management works towards upgrading workplace strategies and execution.
All these factors work collaboratively to drive a successful supply chain management process.
Posted on October 21, 2014 by NAH