Popular Methodologies in Supply Chain Management to Reduce Wastage or Shortages

Supply chain analytics certification

The term supply chain refers to managing the flow of goods into an organisation, processing them to convert them into finished goods, and finally handing them over to the customers. All the components, starting from the raw materials to the steps involved in the delivery of the final finished goods (or services) to the customers, are a part of the supply chain.

The supply chain involves all the players, activities, resources, and organisations that form "links" in the moving of a product right from its inception until it reaches the consumer. Supply chain management helps to plan and manage the resources required to bridge the gap between the demand and supply sides of a product or service. It also helps to eliminate the risk of shortage or wastage.
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This article will take you through the advantages of supply chain management and how a supply chain management certification can help you boost your career.

Components of a Supply Chain Management System
There are a number of components that make up an efficient supply chain management system. They are as follows:

Proper Planning

In order to meet the customers' demands while making sure that there is no shortage or wastage on the supply side, proper planning is of the utmost importance. There should be proper metrics to measure if the supply chain is effective, efficient and capable of delivering the valuables to the customers on time, thus meeting the company's goals.

The Supply of Raw Goods
Creating a product requires businesses to choose suppliers who can provide the services and goods for the production of the end product.

It also requires a proper management system that will manage the supply. It involves processes like placing orders, receiving supplies, updating the inventory from time to time, and issuing payments to the suppliers.

The manufacturing part of the supply chain management system deals with the activities that are related to receiving the raw materials and manufacturing the product. The manufacturing team also conducts quality tests of the products and packages them so that they can be delivered.

A supply chain management system has a dedicated logistics team that looks over customer orders, schedules the timely deliveries of the finished goods, and dispatches them accordingly.

The logistics team also prepares the customer invoices and receives the payment on behalf of the company.
A supply and operations planner should be skilled enough to use the resources judiciously and foresee the requirements of the organisation to avert any kind of shortage or wastage or surplus. A supply chain management certification course will equip you with the correct skill set that will help you curb the risk of wastage or shortages.

How to Manage Shortages in Supply Chain Management

For a supply chain to perform effectively, the flow of information, both upstream as well as downstream, is important. However, with so many steps involved in a supply chain management system, the risk of information distortion is high.

A distortion in the flow of information can lead to shortages in supply chain management. Listed below are some of the methods to address shortages in supply chain management.

Conduct a Thorough Assessment of the Supply Chain
As has been mentioned earlier in the article, a supply chain management system should have a team that manages the supply of raw materials. One should thoroughly analyse the source of each raw material, its cost, and other details.

It is also essential to know how long the materials take to arrive and how long each step in the production process takes before a product is fully prepared to reach the customers.

Look for Alternate Options
After conducting a thorough assessment of the supply chain, one should look for areas of improvement. If any supplier takes a long time to supply raw materials, one can start looking for alternate sources from which the material can be sourced.

Having multiple suppliers also leaves room for alternative options to resort to if one supplier fails to keep up with the requirement.

Proper Inventory Management is the Key
It is important to go through your warehouse from time to time and check what is in stock or what might become out of stock in the near future. This way, you can keep your customers from ordering something that might remain unavailable for some time.

Therefore, proper inventory management is of the utmost importance. You can also use a tool to automate the process. A supply chain management certification will equip you with all these skills.

Keep Your Customers Informed
An important way to avert shortages in supply chain management is by keeping customers informed about shortages in stocks or delays in shipping. This helps to build a healthy relationship with the customers!
Some online shopping sites have the provision of notifying customers about the number of units of a given product left or sending them an email when an item is back in stock.

Alongside all these, you should also keep an emergency stock of materials ready so that you never totally run out of them. This will help to make up for any delay or shortage and give you time to look for an alternative.
Effective Supply Chain Management Technique to Eliminate Wastage

As a good supply and operations planner, you should also try to figure out ways in which you can curb wastage in a supply chain. The first step to preventing wastage is by identifying how each and every ounce of raw material can be put to use. You can also choose to repurpose or reuse any material.

Next, companies need to work on the storage and packaging of goods so that they do not suffer any kind of breakage or damage. Consider investing in some extra cushioning that will absorb shocks or use better-quality packaging boxes.

To curb wastage, the supply chain management systems should also try to reduce the return of goods. For this, companies have to be very elaborate with their product descriptions. There should be enough photos and information to satisfy customers' curiosity before they purchase an item.

Become a Certified Supply Chain Management Professional

If you want to become a certified supply chain professional, you can opt for Imarticus Learning's Supply Chain Management Certification programme. The course curriculum has been designed in collaboration with IIT Roorkee, which is surely going to give you an edge over others!

The course will not only equip you with the right set of skills that are required for the operations and supply chain industry but you will also be issued a certificate from IIT Roorkee, which will add immense value to your resume.
The course will teach you how to use Python so that you can make data-driven decisions. The programme also includes a 3-day campus immersion at IIT Roorkee, which opens up your scope for networking.

Visit their website for more information on this IIT Roorkee Supply Chain Management course and make an informed decision!

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