Supply Chain Management - Why is it Important? - Training in Melbourne, Canberra, Perth

Companies can meet customer demand and expectations with more efficiency if they manage their supply chain better.

To gain skills in managing supply chains, consider participating in the Supply Chain Management Training Course in Melbourne, Canberra, Perth and other cities in Australia.

Why is Supply Chain Management Needed?

The importance of supply chain management is felt in many vital aspects of a business. Anything that is used to meet demand can be said to be a part of a supply chain. It is the raw material, its transportation, the storage space for keeping stock, study of customer behaviour, and market variability that impacts demand among other things. It is true that management of such varied factors is difficult, but supply chain management systematises the management to make it simpler.

The end goal of a supply chain is increased value for customers, and customer satisfaction by the timely meeting of demand. A supply chain needs to be planned and monitored so that any fluctuations caused due to any reason do not impact the meeting of demand.

Supply chain management impacts:

Customer Satisfaction
Improving Performance
Lowering Costs
Product Development

Companies often neglect management of their supply chain, which can lead to the incurring of greater costs due to wastage, and can cause delays, chaos and inefficiency. Meeting demand is not only limited to what the manufacturer can provide, but also impacted by how it is tied with others, including suppliers. For sustaining efficiency in meeting demand, supply chain management becomes an instrumental factor.

What Does Supply Chain Management Include?

Supply chain management has various levels, including strategic, tactical, and operational. It is implemented and managed through five stages:

Planning
Sourcing
Making
Delivering
Returning

Beginning with planning, all the factors that impact a supply chain are analysed and aligned with company goals. Costs, the resources used, and time is considered to make the supply chain efficient. Alternative plans are also developed to ensure that the supply remains stable even if a supplier(s) is unable to deliver or if disruptions are caused.

An important part of supply chain management is tracking and monitoring. This is done to ensure that the supply chain is efficient, and also to collect data to help in better planning. As a supply chain has to deal with much movement (transportation of goods and services from the supplier, and the transportation of finished goods to the market) and the management of suppliers at different locations, a good system of tracking and monitoring is very important to identify problems.

Timely and accurate flow of information prevents errors from taking place, and helps people to receive precise instructions on what they are required to do. Supply chain management uses various methods to achieve a synchronised, efficient, and cost-effective system that results in enhancement in customer satisfaction, cost reduction and greater efficiency.

Supply Chain Management – Why is it Important? – Training in Melbourne, Canberra, Perth

Supply Chain Management – Why is it Important? – Training in Melbourne, Canberra, Perth