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.

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.

Manufacturing
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.

Logistics
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!

Supply Chain Management (SCM) connects the manufacturers to their customers. It ensures the balance of demand and supply, inventory management and streamlining the sales and operation planning process.

Thus, monitoring and maintaining these processes is essential for the smooth functioning of an economy. Supply chain management is a dynamic field that calls for multifaceted, versatile individuals with a strong knack for logistics. 

Want to learn about the roles and objectives of supply chain management? Read on to find out!

Aims of Supply Chain Management

The main goals of SCM are:

• Making operations and production systems efficient

Knowledge of supply chain management enables the streamlining of business operations. It involves organising the production end and making effective distribution and supply strategies.

• Monitoring and fine-tuning quality control

Supply Chain Managers are responsible for ensuring that the quality of the product meets industry standards. They are also responsible for formulating operations protocols. Incorporating sustainable and ethical practices while following safety guidelines is one of the primary objectives of SCM. Real-time tracking of product quality helps detect and remedy manufacturing errors promptly.

• Improving logistics

Bolstering logistics is critical to improving sales and production. Supply chain management aims to automate repeated processes such as placing orders for raw materials, tracking market rates, estimating demand and business costs, and generating operations reports. Efficient scheduling enables maximum productivity and utilisation of raw materials and human resources. A robust supply chain bridges the gap between manufacturers, wholesalers, retailers and customers.

• Controlling wastage and costs

Reducing expenses on raw materials and overheads is the primary goal for any company. It calls for a reduction in waste generation and the implementation of best practices. The supply chain should aim to be sustainable and minimise costs to maintain a healthy profit margin. Shortening the holding period of products and materials enables the seamless flow of goods from manufacturer to consumer.

• Improving customer satisfaction

Pricing and delivery are two things a customer considers while purchasing a product. Applying supply chain management techniques ensures the continued availability of goods and heightens customer satisfaction. Selling products at the lowest possible price while maintaining profit margins aids customer retention.

• Facilitating proper transport and distribution of goods

Transport and delivery are crucial supply chain components. Streamlining transport cuts down overheads and guarantees swift delivery of goods to clients. Automating inventory and distribution processes enhances the efficiency of supply operations and ensures the timely meeting of delivery deadlines.

• Aiding sales and operation planning

Understanding demand and supply dynamics helps coordinate sales and production. Adjusting the supply chain operations to adapt to market trends in real-time ensures the company’s longevity in a volatile economy.

What is the Role of a Supply Chain Manager?

Supply Chain Managers lie at the heart of the operations of a business. Their role is often collaborative and requires the cooperation of different departments within an organisation. 

The chief responsibilities of a Supply Chain Manager fall under five headings.

Planning

• Preparing blueprints for the supply chain structure of a company
• Forecasting market demand
• Calculating material and production costs
• Estimating and managing risks factors

Sourcing and Procurement

• Scouting vendors for raw materials
• Purchasing quality materials at fair prices
• Ensuring proper transport of materials

Storage and Documentation

• Maintaining inventory logs
• Implementing effective warehousing procedures
• Incorporating digital and automated solutions to the documentation of sales and operations data

Production and Operations

• Setting proper manufacturing and operations protocols
• Using new-age technology to improve production practices
• Enforcing best practices and following industry standards
• Identifying faults in the supply chain and coming up with solutions to fix them
• Reducing wastage and applying sustainable solutions to the production process
• Monitoring logistics and productivity

Sales and Supply

• Working with clients and setting realistic timelines for the delivery of products
• Ensuring the sale of the products at competitive market prices
• Tracking shipping and delivery of products
• Staying up-to-date with market prices to ensure maximum profit generation
• Improving the quality of products and customer service to ensure customer retention

SCM: Keys to Success

In addition to theoretical knowledge of SCM, several factors influence the success of the supply chain. Learning to use these factors to one’s advantage distinguishes a company from its competitors.

Some of these factors include:

• Establishing a network with industry professionals
• Improving the flow of transactional data throughout the supply chain system
• Applying new-age technologies and data analytics to business operations
• Knowing when and how to delegate and outsource work
• Creating strategic backup plans to prepare for unforeseen circumstances

Conclusion

SCM is essential for connecting product manufacturers with customers who need them. Supply Chain Managers are necessary to increase the company’s competitiveness in the ever-changing economy. 

Are you looking for a supply chain analytics course? Start a career in supply chain management with the Professional Certification in Supply Chain Management & Analytics by Imarticus Learning, offered in collaboration with IIT Roorkee. This IIT supply chain management course equips you with analytics know-how and in-demand SCM skills and gets you job-ready.

Supply Chain Management (SCM) is a complex and critical process that involves planning, executing and controlling the flow of goods and services from the point of origin to the point of consumption. 

One of the most complex challenges in SCM is reconciling supply and demand, to which sales and operation planning provides a solution. However, successful sales and operation planning implementation demands a deep understanding of the supply chain processes and data. This is where supply chain analytics becomes pivotal, adding insight and innovation to optimise SCM operations. 

This article will attempt to explore the importance of supply chain analytics in SCM. Read on to learn more.

What is Supply Chain Analytics?

Supply chain analytics is the practice of using data analysis and business intelligence tools to gain insights into the performance of a supply chain. It involves collecting and analysing data from various sources such as suppliers, manufacturers, logistics providers and customers.

By utilising supply chain analytics, companies gain unprecedented visibility into their supply chain operations, allowing them to track inventory levels, monitor supplier performance and avoid potential bottlenecks or disruptions.

Armed with these powerful insights, companies can make data-driven decisions to optimise their supply chain efficiency, reduce costs and provide unparalleled customer service.

What are the Different Types of Supply Chain Analytics?

Supply chain analytics encompasses various analytical methodologies, each with distinct characteristics and analytical approaches. The types of these techniques are as follows:

• Descriptive Analytics: It is concerned with getting insights into the past events of an organisation’s supply chain operations. It employs techniques such as data visualisation, statistical analysis and trend analysis that can summarise historical data and detect prevailing trends and patterns.
• Predictive Analytics: This involves harnessing past data to generate predictive models for future occurrences. It is particularly useful for helping businesses anticipate future demand, identify risks, optimise supply chain operations and pinpoint opportunities.
• Prescriptive Analytics: It offers guidance on the most optimal course of action to achieve predetermined outcomes. It integrates both descriptive and predictive analytics to suggest an action plan for a given scenario.
• Diagnostic Analytics: It focuses on ascertaining the underlying causes of issues or anomalies in supply chain operations. It uses techniques such as data mining and drill-downs that can identify inefficiencies within a firm’s supply chain processes, allowing for targeted improvements.
• Real-time Analytics: It enables businesses to obtain instantaneous insights into their supply chain operations. It leverages current data to provide real-time decision-making support for inventory management, logistics, transportation and other real-time supply chain activities.

The Significance of Supply Chain Analytics

The significance of supply chain analytics in SCM cannot be overstated. It provides valuable insights into the complex processes of supply chain operations that are often unpredictable and irregular.

Below are a few reasons why supply chain analytics is important in SCM:

Better Decision Making 

By offering significant insights into supply chain operations, supply chain analytics assists organisations in making educated decisions. These insights may be utilised to optimise supply chain operations and save costs.

Inventory Optimisation 

By giving real-time access to inventory levels, demand trends and supplier performance, supply chain analytics may assist organisations in optimising their inventory levels. This data may be utilised to make better inventory management decisions and lower inventory expenditures.

Enhanced Customer Service 

Organisations may use supply chain analytics to track the delivery of goods and services, monitor customer feedback and respond to consumer concerns as quickly as possible. This enables organisations to enhance customer satisfaction and deliver better customer service over time.

Risk Management

Organisations can detect and manage supply chain risks, supply chain interruptions, supplier performance concerns and demand fluctuation. This is also achieved through supply chain analytics, which gives them real-time visibility into their supply chain management operations.

Conclusion

The world of supply chain analytics is an ever-evolving and complex arena, with businesses striving to gain a competitive edge by harnessing the power of data analytics. It is imperative that organisations recognise the pivotal role of supply chain analytics in driving business success and invest in the technologies and expertise necessary to unlock its full potential.

If you are an aspiring supply chain professional looking to enhance your supply chain management skills, then look no further. Imarticus’s Advanced Certification Program in Digital Supply Chain Management is the ultimate IIT supply chain management course incorporating the latest supply chain analytics concepts. 

This supply chain analytics course provides a comprehensive and practical digital supply chain management approach. You’ll learn how to apply cutting-edge supply chain analytics techniques, design effective supply chain networks and optimise supply chain operations. With expert instruction from industry leaders and real-world case studies, you’ll gain the knowledge and skills required to excel in the dynamic world of supply chain management.

Basics of demand forecasting

Demand forecasting is a term used in business planning to test the future demand for products or services. Depending on this assessment, a company further plans its operations, inventory, and supply chain management. Demand forecasters consider all present or past sales figures, experiences, and knowledge to predict what customers will want in the future.

It is important to note that generating predictions is only the first step toward demand forecasting success. Success depends upon how the forecasts make informed decisions.

These decisions include product pricing, product direction, hiring, and company expansion. Moreover, the prime focus remains on helping the firm avoid overproduction and underproduction. In a nutshell, demand forecasting helps control all the marketing efforts and aspects of a modern business.

Various techniques or methods help in creating demand forecasts. Some ways include the following:

Collective opinion

Market experiment

Regression analysis

Consumer survey

Time series analysis

Delphi method

Each technique has its features that help in achieving different objectives. Therefore, the technique selection depends on the goals and requirements of the forecast.

Features of demand forecasting

Here are a few key features of the demand forecasting technique. Knowing these features can help choose the suitable method:

Time Horizon

The length of time that a forecast needs bears a great impact on the method of forecasting. When the time horizon increases, the probability of marginal forecasting error decreases.

Level of Detail

The forecasting method depends on the level of detail needed in the data. Also, this data must match the focus of the decision-making unit. For instance, a production or sales planning unit will do demand forecasting at an individual level. In contrast, the corporate planning department will need a high-level total forecast by product categories.

Stability

The method for demand forecasting can vary with stable times and fluctuation. While stable time requires lesser attention, it is difficult to forecast the periods in greater flux as they need lots of attention. In stable conditions, the ongoing patterns are a good option to continue with and put the past patterns into future use.

Data Pattern

Different forecasting method uses different patterns to identify and assume the data. So, it is best to choose a method that fits the need for data and its underlying relationships.

Cost

Improved and accurate forecasting procedure is a costly affair! The expenses also vary from forecasting methods and several costs. So, when a company finalizes its forecasting technique, it should be in sync with the firm’s economy.

Ease of Application

The chosen method must be easy to understand and use. Organizations must be able to interpret the result and use it for maximum benefit.

Other factors that affect Demand Forecast

Apart from these above-mentioned method-led features, several other factors affect the organization’s ability to forecast and predict demand. Let’s explore them here:

Customer factor

Both customers and potential customers affect demand. Of course, happy and loyal customers will stick to the product and generate referrals. But in case the business deals with solving service problems and not with the products, then forecasting becomes tricky!

If the competitors bring a better problem-solving approach, then the past sales data and knowledge become meaningless. Therefore, incorporating the marketing department’s plans into forecasts is a must.

One-offs events

Any single event can skew the historical data. For instance, if an organization’s name features on a TV show or any celebrity endorses it in any event, this one-off event can spike sales for that quarter or year. However, the company cannot consider the same projection in next year’s forecasting.

Future uncertainties

Various subtle changes or happenings can change the entire trajectory of demand. Even if the company has the most accurate predictions, the underlying forces are always at play! From unexpected price regulations or a new competitor to a viral video on social media and a global pandemic, certain uncertainties always loom around businesses!

A Career Option in Supply Chains

With the increasing demand for forecasting among businesses to make critical considerations in supply chain management and other marketing management, there is also a growth in their career options. Several Career Certifications For Supply Chain Professionals are available to help learners gain expertise in this scientific exercise of demand prediction. IIT Roorkee Supply Chain Management Course stands out as the best among them!

Futureproof your career with Imarticus Learning

IIT Roorkee Supply Chain Management Course has a design module that trains candidates with cutting-edge experience handling demand forecasting. This Career Certifications For Supply Chain Professionals equip them with the skills to succeed in high-demand job roles like supply and operations planner, demand planner, supply planner, data scientist, etc.

A supply chain Analytics certification through the SCM program at Imarticus helps you become an efficient Supply Chain Specialist responsible for ensuring that the company’s supply matches client demand. They are in charge of its supply networks and guarantee timely delivery and staying within budget.

Duties of A Supply Chain Analyst

Supply Chain Analysts use data gathering and analysis to increase the efficiency of supply chain operations. The job of a supply chain analyst requires meticulous attention to detail, a thorough understanding of the delivery process, and strong analytical abilities. They collect data from various departments and offer methods to improve the supply chain using interpersonal and problem-solving skills.

The duties of a supply chain analyst are:

• Gather information about supply chain operations.
• Analyze data to pinpoint weak areas of supply chain operations.
• Develop and implement programmes that will improve supply chain operations.
• Develop and maintain working connections with shippers and vendors.
• Examine vendor operations and ensure meeting of the quality criteria.
• Measure and report supply chain performance to management.
• Improve service delivery by collaborating with the procurement, logistics, and IT departments.

5 Traits of An Efficient Supply Chain Manager

Your company’s supply chain is at the centre of everything the company does. Your supply chain manager is in control of the whole route of your product, from acquiring ingredients to making sure it meets client demand.

The role of the supply chain manager has progressed from being the company’s buyer or buying manager in the backroom to being an integral element of the company’s backbone. 

The manager should possess diverse skills, such as effective use of available data, planning, financial management and contract management, building strong relationships, and a good understanding of the manufacturing process, transportation system, and warehousing.

A successful supply chain manager possesses a variety of qualities and skills. It requires a good mix of hard and soft talents, which might be challenging to come by.

With the supply chain analytics course training at Imarticus, we emphasize the following five qualities of a supply chain manager:

• Math skills and strong analytical and statistical capabilities are required to grasp supply and demand concerns with the available data.

• The manager should have the ability to analyze orders and shipments, sales patterns, demand, and any flaws and inefficiencies using data.

• Another trait of a supply chain manager is the technical knowledge of artificial intelligence, machine learning, the Internet of Things, analytics software and apps.

• A supply chain manager requires soft skills for negotiating and building connections with suppliers, customers, and team members.

•  Attention to detail for understanding the business and its environment.

Supply Chain Analytics Course 

By generating the SCM program at Imarticus, we help you train in an exciting area in high demand. This course at Imarticus takes you on a fascinating journey where supply chain analytics meets data analytics. 

At Imarticus with SCM program, our motive is to know the real-life examples of the application of supply chain onto various domains: selling, logistics, production, sourcing, and generating a powerful and significant social and economic impact.