Functions of Supply Chain Management - Training Course

Supply Chain Management (SCM) strengthens the relationship of an organisation with its suppliers and buyers by developing better coordination.

If you are looking to gain skills in SCM, consider joining the Supply Chain Management Training Course, offered by pdtraining in Parramatta and other cities in Australia.

In today’s global market, more and more companies are finding the need to collaborate to grow and expand. With this need, the scope of SCM is also increasing. It is now becoming an effective tool to manage supply and suppliers, costs, inventory, orders, returns and sales. Companies are using supply chain management’s tracking and monitoring methods to develop better plans to maximise profits, minimise costs and strengthening their supply chains.

Core Functions of SCM

Even though primarily SCM is concerned with suppliers and the proper movement of raw material into the organisation, it is increasingly adopting areas that are crucial for customer satisfaction. Some of the important functions of supply chain management are:

Management of suppliers
Management of Raw Material
Transportation Management
Information Management
Tracking and Monitoring
Cost Management
Inventory Management
Distribution and Return Management
Management of Supply Chains
Customer Satisfaction

Connectivity of Different Functions

Many of the internal processes of a company are linked with the external processes. These areas are interconnected and affect profits, costs and customer satisfaction. For example, the raw material reaches the manufacturer from the supplier(s) using transportation. Even in this simple chain, many factors such as inventory management, transportation management, knowledge management, tracking, monitoring, and cost management are conducted.

That is how in a simple transfer of raw material from the supplier to the manufacturer, the management of various areas is required. Due to this interaction and inter-dependence of different functions, a cross-functional approach is used in SCM.

Outsourcing of Functions

Globalisation has drastically changed how we work. Businesses have taken advantage of technology to outsource work that can be done at reduced costs. Distribution of ownership of functions is increasingly becoming key to growth and expansion. In a changing environment, supply chain management involves more than management of suppliers. It also involves outsourcing of functions that can be done better, and at lower costs, by others.

Outsourcing of functions does not necessarily mean lack of control. With sophisticated tracking and monitoring methods, manufacturers can easily control functions even if they are carried out by other companies. The function of SCM here becomes more expansive, challenging and fruitful.

Functions of Supply Chain Management – Training Course – Parramatta

Functions of Supply Chain Management – Training Course – Parramatta