Utilizing supply chain management for improving your organization’s bottom line

The supply chain is a complex mix of activities that is focused on cost-effectively delivering products or services. It can be associated to any manufacturing company that is in business to provide a product or services to its customers. All the activities included in delivering the quality product from the time of raw material extraction till the time the product reaches in the customer’s hands come under supply chain management.

The motive behind effective supply chain management is manufacturing and delivering the product better, faster and cheaper. It is an effort towards making the supply chain effective and efficient.  

Group50, a renowned firm provides supply chainmanagement consulting and have managed supply chain of all sizes from $20M to $4B. Companies need to be effective at designing products, defining services, forecasting, acquiring materials and resources, purchasing, and delivering those products and services to their customers. And, they need to do this by optimizing their supply chains. To understand how well their supply chain is doing is through supply chain effectiveness assessment.

Supply Chain Effectiveness Assessment

This assessment examines how effective your company’s supply chain is in acquiring materials, moving them through your required value added processes and delivering them to your customers. It looks at the ability of the current systems and provides a gap analysis of the supply chain with a perspective to responsiveness, best practices, scalability and sustainability.

How Supply Chain Management Benefits Your Organization

Greater efficiency

It incorporates various aspects of business such as logistics, product innovation methods, production, demand forecasting etc. This lands the organizations in a position where they can predict demand and make their moves in that direction. Greater efficiency helps in delivering the product to the customers at a faster pace.

Lowers costs

One of the main advantages of supply chain management is that it lowers the total supply chain cost. All the costs related to materials procuring, inventory, transportation and others are reduced significantly thereby increasing the organization’s profitability.

Enhances collaboration with vendors and suppliers

There is an interconnection of various businesses in a supply chain that work with one main objective to provide value to the customers. Effective supply chain management allows you to evaluate supplier relationships and accordingly, you can take decisions like choosing the supplier for raw materials and also the distributors. Based on this transparent view and the customers’ demands, you can utilize the service of different suppliers and distributors that fit best.   

Improves financial flow

With supply chain management, organizations can evaluate their processes, address all the cash flow challenges, identify and eliminate all the weaknesses which hamper financial flow.

To take advantage of all the above-mentioned points, contact a reputed supply chain consulting company like Group50. They will work with the senior leadership team to develop a supply chain management roadmap that can generate 5-10% cost improvements, reduced working capital requirements and reduced lead times year over year. 

 

Importance and Four Key Elements of Supply Chain Management

Supply Chain Management (SCM) is the management of a set-up of all business activities and processes including obtaining of raw materials, manufacturing and distribution management of end goods. SCM is also known as the art of management of giving the accurate product, at the accurate place, accurate time and at the accurate cost to the customer.

Why SCM strategy is essential for an organization?

Today, the life-threatening pillar to business organizations is supply chain strategies. Availability of products at locations and effective market coverage that are keys for revenue generation is based on the effectiveness of a supply chain strategy that is implemented. In a simple language, when a product is launched in the market and promoted, the entire market throughout the country and all the sales counters require having the product where customers can purchase and take delivery. Any problem in the product available at the accurate time can result in the loss of customer interest and demand which can be dangerous.

Key elements to supply chain management

Supply chain operations

In the supply chain, this link manages the details of daily operations for the company. It plans the output of the company to ensure everything is going on well and the benefits are high. Operations mainly view the company’s inventory.

This utilizes the business forecasting to foretell which supplies will be required, by whom, when and also search for the ways to predict the marketing approaches, the effectiveness of products, along with end-user output. Operations oversee the overall company’s production.

Distribution of business commodities

Distribution coordinates how business commodities end up where they need to. In the supply chain, the distribution part is responsible for the logistics of communications among clients, retailers, or wholesalers. These groups watch shipments, and not only know about what is required in-house production for producing products but also the products should be delivered to the end-customer on right time and in perfect shape.

Integration – Heart of the supply chain

It is considered as the heart of the supply chain. Because supervising supply chain integration means coordinating communication between the remaining supply chain to generate outcomes in an effective and timely manner. However, this means discovering new technological ways to create communication among departments. Those who manage integration needs to ensure that things are occurring within the budget and on time without compromising with the quality.

Buying sources a company requires

In this department, products, materials, and other goods are sourced for generating the company’s products. Buying sources foster relationship with suppliers and also find out the quantities and qualities of essential items. It’s vital for the people in purchasing to view the budget for making things to be affordable for the company.

It can be ensured that all these four elements are working in harmony with the help of a prominent supply chain consulting firm like Group50 that has consultants who know how to manage different supply chains. For optimizing supply chain, they provide strategic sourcing services and have a wide experience in executing and designing an optimization roadmap.

To get help from their supply chain management consultants, you can call them.