Last updated on April 6th, 2024 at 08:40 pm
Supply Chain Management (SCM) is the centralised management of the flow of goods and services from the manufacturer to the customer. Sales and operation planning is an integral part of SCM which ensures the successful functioning of a supply chain.
The supply chain sector continues to shift and evolve with emerging trends. Set your 2023 plan now and implement the best supply chain practices to keep your edge over others. This article will discuss some of the best supply chain practices for 2023.
What is Supply Chain Management?
Supply chain management includes all processes needed to transform raw materials into finished products. It simplifies a company's supply chain operations to maximise customer satisfaction and have a competitive edge in the market.
Several problems plague today’s supply chains. This is why a data-driven supply chain is crucial for easily monitoring the flow of services, information and products. It offers a better understanding of the entire process from start to finish.
Importance of Supply Chain Management
A robust SCM is essential for businesses to succeed and enhance customer satisfaction. Some major importance of supply chain management is as follows:
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Lower Costs
The goal of Supply Chain Managers is frequently to cut expenses at every stage of the supply chain.
Supply Chain Managers can cut costs through enhanced manufacturing procedures, supplier relationships and inventory management.
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Enhanced Client Services
Your customer service may be directly enhanced with efficient supply chain management. This is because SCM procedures guarantee that the correct number of goods is delivered on schedule while meeting quality standards.
Sound connectivity between distributors and suppliers minimises delays and increases client satisfaction.
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Agility
Supply chain management is crucial for businesses to stay flexible and be prepared for any unforeseen problems or unpredictability that may arise.
Businesses can identify problems and find solutions rapidly by streamlining supply chain procedures and improving visibility.
Top Supply Chain Management Practices of 2023
Listed below are some supply chain practices that businesses must adopt in 2023.
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Utilising a More Flexible Business Model
A successful supply chain includes a lot of flexibility. A company can react more effectively to shifts in demand, natural catastrophes, political unrest and other unforeseen situations by having a flexible business model.
Regular review intervals will help you stay adaptable as circumstances change; monthly touchpoints will keep the plan in line with current effects.
Create an easily comprehensible supply chain plan. Include benchmarks, objectives, presumptions, relationships and circumstances.
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Tackling Supply Chain Threats
Supply chain risk management has become critical as companies have encountered more complex and unpredictable operating environments in recent years.
Risks to the supply chain can come in many forms, such as natural disasters that obstruct the movement of goods or cyberattacks that may compromise private data.
Strategic planning, threat assessment tools and a comprehensive company continuity plan work best for managing these risks.
Businesses can successfully handle any obstacle and maintain high levels of efficiency and effectiveness by anticipating potential threats and creating mitigation strategies.
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Introduction of Automation Methods
A vital component of a supply chain is automation. It can help you cut costs, enhance customer satisfaction and reduce environmental effects.
Supply chains are constantly changing as a result of new processes and technology.
Implementing new automation techniques will keep you ahead of the curve as the world becomes more digitally connected.
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Putting the Consumer's Interests First
In addition to maximising operations, supply chain management also focuses on providing top-notch customer support.
Businesses must continuously seek new strategies to enhance the customer experience.
This can be achieved by emphasising customer centricity, which refers to companies partnering closely with their clients to comprehend their needs and provide the most pertinent, customised services.
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Work with Third-party Partners
By applying the skills or resources of another company when required, businesses can increase their flexibility through outsourcing or partnerships with other businesses.
It allows businesses to concentrate on their core competencies while enlisting outside assistance as and when necessary.
For instance, outsourcing shipping services or working with local vendors when your supply requirements change due to unforeseen weather patterns like rain or snow (or droughts) can impact your services in more ways than one.
Your supply chain requires third-party partners to function correctly. However, a thorough knowledge of the partner’s compliance history and supply network is essential for the timely supply of goods and services. In addition, a contract should cover the following points:
- Standards for the security of sales and inventory records
- Terms of payment and procedures for resolving disputes
- Requirements for product quality, including recalls
Conclusion
Several factors contribute to the successful running of a supply chain. A supply chain requires proper sales and operation planning, procurement and distribution of raw materials and delivering quality finished products.
A supply chain analytics course is ideal for anyone looking forward to making a career in supply chain management.
Check out Imarticus’s Professional Supply Chain Management course, offered in partnership with IIT Roorkee, to get a head start on your career. This IIT supply chain management course, designed by industry experts and taught by notable IIT faculty, is perfect for those seeking careers as Supply Planners, Demand Planners, and Supply and Operations Planners.
