Looking for the best logistics and supply chain management course on the block? Before you choose the supply chain Management course that suits you, understand why efficient procurement and logistical management are vital for organizations in the first place.
Procurement and logistics are two of the most common terms that you will hear in a business environment. While procurement refers to sourcing supplies, logistics means the holistic process of acquiring resources from their origin, managing them, and transporting them to the point of consumption.
But why do organizations emphasize procurement and logistics management to deliver business value? Let’s find out.
Why is Procurement Management Important?
Procurement management entails overseeing all the processes involved in sourcing the materials, products, goods, and services required for business operations to run efficiently. The terms “purchasing,” “sourcing,” and “procurement” are often used interchangeably to describe the procuring of supplies and management of the process. However, it is “procurement” and “purchasing” that essentially refers to the operational function, while “sourcing” is usually more strategic.
Procurement management has a direct impact on strategic business operations and the company’s bottom line for the following reasons:
- Procurement management ensures the proper acquisition of items and services so that processes and projects can proceed efficiently.
- Procurement management can be instrumental in sealing valuable production and supplier contracts.
- It can also set the stage for new and innovative processes and help domestic and local businesses go global.
- When optimized, procurement management can save time, money, and resources while offering a competitive advantage.
- By actively pursuing diverse suppliers, procurement management can be at the forefront of trailblazing CSR initiatives to promote diversity and inclusion.
Why is Logistics Management Important?
What earlier used to be a term restricted to military operations has now become a widespread business concept. Today, the business sector uses the term logistics to describe the efficient flow, storage, and management of goods from their source to the point of consumption.
Here’s how logistics management is critical to stay competitive and keep pace with customers’ demands:
- Managing logistics significantly reduces overhead costs, increases productivity, and ensures faster delivery.
- Logistics is the foundation of a successful supply chain. It helps boost the sales and profit of businesses dealing with the production, warehousing, shipment, and delivery of products.
- The analysis of a company’s supply chain management data improves efficiency. Using a transportation management system to track the movement of goods in and out of a business optimizes the process and minimizes disruptions.
- Well-managed and organized logistics ensure fast and seamless product delivery to customers.
- Last but not least, efficient logistics management improves customer service, meeting and exceeding customer demands. It enhances the brand image and helps the business attract and retain long-term customers.
What to Look For in a Logistics and Supply Chain Management Course?
If your goal is to get a professional certification in Supply Chain Management and Analytics, there are several online courses that you can choose from. While each of them claims to be the best, ensure that the program caters to your professional needs.
For example, the course curriculum should cover key programming languages and tools such as Python, Excel, and TOra, and hands-on training in real-world SCM projects. Overall, the course must be robust enough to prepare you for the operations and supply chain industry with a cutting-edge curriculum and industry exposure.