What is Supply Chain Management? Training Course in Sydney, Canberra, Melbourne

Supply Chain Management (SCM) is the management of suppliers and goods, storage of raw materials, transportation of goods, etc. to the point of consumption.

Supply Chain Management Training Course by pdtraining in Sydney, Canberra, Melbourne — Understand to improve supply chains

To gain skills in the management of supply chains, consider participating in Supply Chain Management Training Course delivered by pdtraining in Sydney, Canberra, Melbourne and other cities in Australia.

Definition of Supply Chain Management

The term “supply chain management”came into being when a consultant, Keith Oliver, at the then Booz Allen Hamilton coined the term in an interview in 1982. Though the term was slow to pick up, today it is commonly used to refer to the handling of supply chains.

A supply chain is made of interconnected and interlinked networks between the supplier and the manufacturing units, and between the place of manufacturing and the point of consumption. Management of supply chain is conducted to maximise customer value, minimise costs, and gain competitive advantage.

Benefits of Supply Chain Management

Supply chains may include production, product development, supply of information and technology, etc. Creation of an efficient supply chain ensures the satisfaction of customer demands, minimising of costs, and sustenance of a steady supply chain.

To guarantee quality and timely delivery of goods and services, companies plan, measure, analyse, coordinate and control their supply chains to optimise them. To develop an end product and deliver it to the final point from where the consumer purchases it, an organisation uses various sources, channel partners, collaborations, third-party suppliers, service providers, etc. An efficient supply chain enhances value for the customers, prevents delays and disturbances, and reduces wastage.

Removal of Wastage

An important goal of supply chain management is to identify and remove wastage caused due to:

Unnecessary transportation of material from one place to another

Excessive storage

Waiting

Needless processing

Loss due to miscommunication or lack of communication

Confusion

Inefficiency or incompetence

According to the changes in demand, the supply also increases or decreases across the companies. For effective supply chain management, companies need to plan to prevent problems and accidents from happening, and create backup plans to handle emergencies or errors.

Some of the operations conducted under supply chain management include planning, sourcing, making, delivering, and returning. It also involves management of inventory, tracking and monitoring of goods and services, and the measurement of results.

By expertly managing their supply chains, companies can create steady and efficient supply chains, ensure customer satisfaction, minimise costs, gain competitive advantage, and measure performance.