June 11, 2019
Supply Chain Management (SCM) is one of the most crucial functions that industries have to practice in today’s day-and-age. After all, supply chains have become incredibly complex in modern times due to the sheer scale that most businesses reach. For these organisations to analyse, maintain, and optimise this supply chain efficiently, having an SCM system is critical.
SCM involves several processes and tools that aid this functioning. One such aspect that needs to be kept in mind for the same is something that the title of this article has already revealed – a supply chain network. As the name should already make infinitely clear, a supply chain network is an organised structure that entails out all the services, entities, functions – and anything else along the same lines – involved in the entire supply process.
So, it pretty much goes without saying that setting up this network is incredibly important to ensure that little to no problems come in the way of businesses carrying out effective SCM processes. Of course, this is easier said than done – several things need to be kept in mind to ensure the same. After all, there’s a reason why the demand for supply chain management professionals is at an all-time high – individuals who know efficient SCM can play an integral role in the organisations of today.
However, this brings a pressing question to mind – how exactly does one learn to build an efficient supply chain network? We say this because several elements need to be kept in mind for the same.
Maximising cost savings through supply chain optimisation
Interruptions and mismanagement in the supply chain are some of the primary reasons why businesses end up losing a lot of money. Think of it as a software with bugs – no matter what the end product might be, the effectiveness of said software will be impacted due to bugs that hamper the overall experience. The concept of a supply chain is similar – regardless of the usefulness of the company’s offerings, the business’ operations won’t be cost-effective if there are too many needless functions. Thus, the supply chain needs to be analysed and optimised to maximise cost savings and optimise the supply chain.
Implementing hybrid solutions
Analysing problems in a supply chain one at a time and implementing solutions for the same might sound like the best course of action to take, but cost-effectiveness is lost during this procedure. Instead, it is recommended to identify every problem and figure out hybrid solutions that can kill two – or more – birds with one stone. Examples of solutions include enlisting the services of multiple suppliers to ensure the fastest and most reliable supply of a product or combining the efforts of two manufacturers to hasten the delivery and production of goods & services.
Utilising modern software for cohesive data analysis
The sheer amount of data generated in the industries of today across different functionalities is immense and can be somewhat overbearing at times. This is true in the case of the supply chain as well – most of the errors and avenues for improvement can be pinpointed through a practical data analysis that highlights precisely what can be fixed or augmented. Thus, utilising modern software and employing individuals who can analyse this data becomes all the more critical.
These three points discussed above are just a few of the many ways in which the efficiency of the supply chain network can be enhanced.
For companies and conglomerates, it can honestly be quite overbearing to figure out the best course of action that can be taken to surmise how their supply chain network can be fixed and optimised. This is where the role of new-age logistics professionals comes into play, with institutes like ILAM providing a future-ready course in the form of a BBA in Logistics & Supply Chain Management. It’s a UGC-recognised program that’s fully residential, and teaches everything one needs to know about building a supply chain network will help industries optimise their processes to a T.
So, if you wish to learn how to build an efficient supply chain network, then look no further than institutes like ILAM!