Why Supply Chain is hot topic for the enterprises

October 18th, 2013 by blogadmin Leave a reply »

Supply Chain Management(SCM) is an essential element to operational efficiency and can be applied to customer satisfaction and company success, as well as within societal settings, including medical missions, disaster relief operations and other kinds of emergencies; cultural evolution; and can help improve quality of life. Because of the vital role supply chain plays within organizations, employers seek employees with an abundance of supply chain skills and knowledge. Supply chain is critical to business operations

Supply Chain is Globally Necessary

Basically, the world is one big supply chain. Supply chain touches major issues, including the rapid growth of multinational corporations and strategic partnership; global expansion and sourcing; fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy and bottom line. Because of these emerging trends, supply chain management is the most critical business discipline in the world today

Boosts Customer Service

SCM impacts customer service by making sure the right product assortment and quantity are delivered in a timely fashion. Additionally, those products must be available in the location that customers should also receive quality after sale customer support.

Improves Bottom line

SCM has tremendous impact on the bottom line. Firms value supply chain managers because they decrease the use of large fixed assets such as plants, warehouses and transportation vehicles in the supply chain. Also, cash flow is increased because if delivery of the product can be expedited, profits will also be received quickly
Massachusetts Institute of Technology researchers have developed a tool that will help companies visualize and assesses the vulnerability of their supply chain in the face of a catastrophe. The tool is called Sourcemap and they call the platform “ The social network for supply chains”- offering the ability to see the complete supply chain for a product or company and fully understand where things come from. And, in the event of natural disasters or political unrest, quickly assess the potential impacts on the entire supply chain.
Savvy businesses see sustainability and supply chain transparency as strategic business initiatives, critical in building customer trust and loyalty. Even McDonald’s is getting in the sustainability game .Whereas once upon a time you would have had to dig deep into the fine point on their website to find out where their ingredients came from, now they are bringing this information to the forefront – and that means directly on the product.
As Rachel Spasser of Ariba, an SAP Company, stated so eloquently in her blog “ Having great product ideas is not enough. Having the type of relationships that ensure stellar execution on great product ideas is critical. And, having the right level of collaboration with and insights into your supply chain is a key input to that stellar execution”.

Conclusion: Whether you are a consumer, investor, or other stakeholder, analysis of a business, supply chain are as critical as R&D or sales strategies. A company’s supply chain is its lifeblood, a critical contributor to profitability and shareholder value.

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