Supply Chain Management (SCM) balances the demand and supply so that customer demand is met successfully at all times.
If you wish to gain skills in managing supply chain, consider participating in Supply Chain Management Training Course delivered by pdtraining in Christchurch, Napier, Tauranga and other cities in New Zealand.
Stability in Meeting Demand
The importance of Supply Chain Management rests upon its ability to provide a stable supply chain. The ultimate aim of SCM is to match supply with demand. This can often be a daunting task as demand is not constant. To create a flexible yet stable supply chain, Supply Chain Management uses the following steps:
Planning is conducted to predict and prevent obstacles and errors from disrupting the supply chain. It also involves using resources, and considering the choices to minimise costs and increase efficiency. To create a strong supply chain, various options and combinations of suppliers are considered. Variability, market forces and changes in demand are also considered to build stability.
Minimising Delays and Errors
Each phase of SCM ensures that there is no delay in supply. Supply chains that are not strong and flexible often lead to delays that cause loss of customers. Since in a supply chain, many operations, establishments, people and movements are involved, it requires effective planning, organisation, and systems to minimise delays and errors. Supply chain management helps companies to optimise their supply chain to achieve enhanced efficiency, timeliness and support.
Companies spend a fortune on advertising and marketing. Yet if there is no availability or timely availability of the product or service for the customer, not only is business lost, but the costs incurred in advertising and promotion are also not fully utilised. Through Supply Chain Management, companies develop a supply chain that almost guarantees that supply is fully adjusted to the demand.
Costs are incurred at every level of production, be it planning, organising or distribution. Time, movement and the use of human resources can drastically increase costs if proper systems are not put in place. To remove waste and keep the costs to the minimum in a supply chain, effective demand planning, inventory management, transportation organisation, choice of suppliers, etc. are conducted. Various processes are routinely carried out to ensure that there is as little wastage of resources as possible. It must be remembered here that errors also cause waste. Therefore, evaluation of operational performance becomes a vital part of SCM.
The end result of effective Supply Chain Management is an increase in profits. As costs are minimised, resources fully utilised, and demand of customers met every time, it leads to increased profits. When a company enjoys a stable, strong and flexible supply chain, it can focus on building upon their existing profits rather than managing the existing business. Supply Chain Management today is an indispensable part of a business, large or small, as it allows them crucial benefits.
Pdtraining delivers 1000’s of professional development courses each year in Wellington, Auckland, Napier, Christchurch, Hamilton, Dunedin and Tauranga, so you can be assured your training will be delivered by a qualified and experienced trainer.
All public Supply Chain Management Training courses include am/pm tea, lunch, printed courseware and a certificate of completion. Customised courses are available upon request so please contact pdtraining on 1300 121 400 to learn more.