With the digital ecosystem getting connected across geographies and devices, eCommerce and online activities are more common. It has created an environment of online purchases and returns for a competitive edge and a longer customer lifecycle journey.
With digitization generating more and more job opportunities, the career landscape is no longer what it used to be in the 90s or even 2000s. The avenues of career have also widened. One rapidly growing domain is Supply Chain Management (SCM), which deals with the entire chain of operations up to customer delivery. It requires knowledge of IT, procurement processes, manufacturing, e-commerce, mapping, BI systems, and analytics.
This emerging discipline of SCM calls for specialized skills in visualization and analytical tools besides managerial. So if you are looking for a new-age domain of management specialization whose scope is constantly expanding, you may consider taking a Supply Chain Management Course and carving a future in a niche managerial position.
What is Supply Chain Management (SCM)
Supply Chain Management (SCM) is the centralized management of the end-to-end supply of goods, from raw materials to finished products. It involves the process optimization of the supply-side activities and logistics that maintain a smooth, silos-free flow of production and delivery of goods to customers.
SCM is a discipline that leverages scientific, data-driven, and mapping processes to maximize customer satisfaction for a competitive edge in the market. With countless eCommerce platforms like Amazon, Flipkart, Big Basket, Myntra, and many more, companies are constantly striving for perfection to gain that competitive edge in a fast-paced marketplace where delivery time is the differentiator.
It is an integrated planning and execution platform that maps the movement of materials, goods, and financial capital. SCM thus typically involves demand planning, sourcing, inventory management, storage, logistics, and transportation. SCM is a business strategy that uses customized software and collaboration tools for functional efficiency, often supported by a procure to pay platform.
The concept of Supply Chain Management (SCM) is based on the following principles:
- Every product reaches the end user collectively as the supply chain.
- The entire chain of activities delivering products to the customer must be linked together as a chain of physical flows and information flows.
Physical Flows
Physical flows refer to the physical transformation, storage, movement, and logistics of goods and materials. They are the visible part of the supply chain.
Information Flows
Information flows coordinate the various supply chain partners and align them with long-term plans, to maintain a constant supply of day-to-day flow of goods and materials through the supply chain.
Benefits of Implementing SCM
Better supply chain visibility further enhances predictive capabilities and risk management for higher profits, better brand image, and higher ROI.
Here is how SCM benefits companies:
- SCM helps companies cut wastage, damage, and process silos by delivering products to the customer speedily and more efficiently.
- It ensures happy customers, a longer customer lifecycle where returns of goods are adjusted against new purchases, and averts expensive recalls and lawsuits.
- A comprehensive picture is gained about every process – sourcing, product development, and logistics – with information systems and BI tools helping coordinate 24/7.
- The online SCM systems ensure better visibility and data analytics at a granular level and in real-time.
- There is an effective seamless collaboration with suppliers.
- It ensures better quality control in real-time and immediate actions for defects or errors.
- Collaboration with suppliers is also highly streamlined and efficient.
- SCM ensures shipping optimization and logistics for timely deliveries across far-fetched locations.
- As process inefficiencies and product waste are monitored in real-time, the inventory and overhead costs are lesser.
- Customer demand is easier to predict and meet.
Ultimately, the implementation of SCM results in improved risk mitigation, strong cash flows, and a more robust business.
The Five stages of Supply Chain Management
Supply Chain Management has five stages of operations:
Planning
Organizations devise strategic plans to predict customer demand for a product based on historical data, market dynamics, costs, and supplies.
The resultant Supply Chain analytics and Materials Management visible in the ERP systems help avoid sudden process silos and fluctuations at the retail level.
Sourcing
Organizations identify and select vendors who can supply materials without gaps and honor contracts. Supply chain collaboration starts at this stage of the Supply Chain Management process.
Making
The manufacturing stage of supply chain operations is very critical. It includes planning the schedule, testing, and maintaining compliance requirements for packaging, storage, and release. Multiple machines, often AI and Robot aided, are enlisted with technologies such as IoT and AI for higher efficiencies.
Delivering
The delivery stage includes logistics and last-mile delivery based on geographic location. It gets finished products to end consumers using the most efficient transportation, sometimes outsourced to partner agents. With the cutting-edge eCommerce competition, doorstep delivery is the focus. In this stage, the Supply Chain Managers work closely with customers for more efficient services and robust inventory and warehouse management.
Returning
The return stage is the pickup stage for product returns, stocktaking of defective or wrongly ordered products for better inventory, and transportation management.
What are the Career Options
A great benefit of SCM is its application across most industries. A certification equips the candidate with transferable skills and knowledge in areas such as logistics, procurement, warehousing, demand fulfillment, and simulations.
SCM certifications allow you to apply for varying job roles such as Supply Chains Manager, Purchasing Agent and Buyer, Storage Distribution Manager, Warehouse Manager, Inventory Manager, and Logistics Manager.
Supply Chain Professionals monitor the global supply chain 24/7, with automated IT systems and market trends to be ahead of the competition.
Professionals in the mapping and AI domains also have an upper edge in SCM, as they can map supply chains in-depth and leverage AI in various aspects of warehousing and logistics for enhanced career growth.
With digitization, a critical part of SCM, graduates in SCM or Logistics have a better chance to ace the interview in an eCommerce company or hub.
The increase in cross-border trade and integrated IT systems where products are sourced or manufactured at one site and then shipped and sold to other global locations has increased the career scope of SCM.
Managing the supply chains in large organizations has become increasingly important. Many of the world’s most successful businesses owe their success to efficient supply chain management. So a course in SC enhances your chances of working with global names.
Summary
Studying Supply Chain Management keeps the operational wheels turning smoothly at all times and especially in times of crisis such as the COVID lockdown. It gives you a 360-degree view of business operations for managing and troubleshooting processes. With the demand ever increasing, an SCM course can boost your career growth and help you build specialist skills in management.
