Breaking Down Supply Chain Management | A Complete Overview

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5 Most Important Supply Chain Management Processes

The main responsibility of supply chain professionals is to coordinate all activities, from product manufacturing to shipping and distribution, from one central location. These 5 components are necessary to create and deliver high-quality products/services on time & within the allotted budget.

1. Planning: To fulfill the customers’ demand for a company's product or service, companies need to plan and manage the necessary resources. Once the supply chain is in place, professionals choose KPIs to gauge its performance in terms of customer value delivery, efficiency, and effectiveness.
2. Sourcing: In this phase, the companies select vendors to offer the products and services required to produce the final product. They also need to create processes to oversee and manage supplier relationships. The focus is on ordering, receiving, and managing inventory, & revenue.
3. Manufacturing: Here, the organizations set up the processes needed to receive raw materials, create the product, test it for quality, and package it for distribution. There might be numerous iterations before the final product is out. 
4. Delivering: This is the critical juncture where the company’s brand image, customer satisfaction & product quality is at stake and professionals ensure the product reaches the customers seamlessly.
5. Returning: A flawless return or exchange process is essential to maintaining a positive client experience and is just as crucial as the delivery process.

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6 Principles Of Supply Chain Management 

1. Establish a supply chain structure: A supply chain must have a solid foundation. The success of a supply chain is based on its structure. Many companies prefer centralized supply chain management (a single hub & operations are limited to a central location), while others see decentralization (operations are spread out over a series of nodes - different locations - in a network) as a method of success. Many modern businesses have devised a hybrid system that combines centralized strategy & decision-making with decentralized operations & workload. This system provides a more adaptable and flexible structure.
2. Align demand planning across the supply chain: Professionals in the supply chain are taught to exchange information with business partners to reduce unnecessary stock. The Supply Chain professionals pay attention to market signals and adjust demand planning accordingly throughout the supply chain to ensure accurate projections and efficient resource use.
3. Adapt the supply chain to customers’ needs: Companies that manufacture consumer packaged products face a constant problem in predicting what customers want and when they want it. Hence, companies segment customers based on the service needs of distinct groups and adapt the supply chain to serve these segments profitably.
4. Leverage real-time data across all points of the supply chain: Supply chain planning typically involves a myriad mix of suppliers, channels, customers, and pricing schemes. Using spreadsheets can become large and potentially ineffective—especially when real-time data is not used. Nowadays, companies have started incorporating Supply Chain SaaS solutions that use real-time data and IoT to allow planners to be accurate and reduce the risk of stock-outs or surplus inventory.
5. Outsource strategically: This is the principle that stands the test of time. Organizations that strive and manage to reduce the total cost of ownership of goods and services by strategically managing sources of supply always profit in the long run.
6. Leverage technology: Adopting technology has become a standard operation in supply chains. The challenge is to select a platform that fits your needs. Platforms, such as ERPs and SAPs, are powerful tools to streamline processes, increase visibility, minimize paperwork, and automate certain activities. Transportation management systems enable you to make smarter business decisions that help in increasing efficiency & reducing risk. A strong platform helps streamline SCM and works in tandem with your company's strategy.

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Why Do Companies Focus On Improving Their Supply Chains?

Implementation of supply chains is growing tremendously, with trade volume doubling over the past 20 years. Supply Chain Management is a USD 215 billion industry growing at a CAGR of over 10%. With its expected growth, the supply chain has become a significant part of economic development as well as a backbone of Corporate India. Supply Chains are no longer just a support function but have become an engine for new business models & customer experiences.

1. Profits can be doubled by lowering the costs of the supply chain: Optimization and cost-cutting are always beneficial in supply chains since they have a substantial impact on business profitability. The optimized supply chain of a company costs 7.9% of the overall company costs whereas an average one costs 13.2%. This accounts for 40% savings.
2. Supply Chain Management is a growth driver, not a cost center: Supply chain executives are witnessing an increase in demand for a broader range of products that are personalized (76%), reliable (73%), sustainable (69%), and delivered quickly (76%). The supply chain workforce is in the middle of a digital transformation. Adaptability & flexibility can create value for businesses & drive growth.
3. It improves customer experience: According to the report by Accenture, 70% of supply chain professionals believe that SCM will be a key driver of quality customer service. Effective supply chain management and product flow can help you reduce issues faced by customers while maintaining high customer satisfaction.

The Bottom Line

The future is in the supply chain management industry! Well, it's hard to argue as more than 14% of the massive USD 400 billion of India’s GDP is dependent on supply chains & logistics. With every passing year, the demand for innovations and technologies that will improve the efficiency of the SCM and consumer satisfaction is growing exponentially. 

This industry is forever changing, with some sectors evolving at a faster pace than others. Given these changes, there are tons of opportunities for individuals with expertise in SCM. This industry employs over 25 million people and continues to increase its hiring rate by 7%. With the workforce expected to grow by 30% by 2030 (U.S. Bureau of Labor Statistics) and the need for supply chain professionals to help businesses reach their potential increasing, this will continue to be a hot field.  

If you are looking for a way to enter this lucrative industry, don’t look further than the -

AltUni’s Certificate Program In Supply Chain Management In Association With SPJIMR & Decathlon

Why Should You Sign Up?

• Stand a chance to interview with the French MNC, Decathlon for a full-time job opportunity
• Get 65+ hours of live and recorded learning sessions with SPJIMR faculty & industry experts
• Work on a Live Industry Project with Decathlon to get invaluable industry exposure
• Learn from live simulations, assignments, Harvard Business School case studies, etc.
• Get a chance to earn SPJIMR Executive Alumni status and get access to a host of benefits
• Get certified by SPJIMR and AltUni
• Get free access to Klub AltUni
• This is one of our top-rated programs with a cumulative program rating of 4.68 out of 5. 

This program also helps you learn how to master interviews for roles in the Supply Chain Management function,

• Benefit from the access to AltUni Career Services like 1-on-1 live sessions for CV editing, mock interview, and career coaching
• Get job search assistance as an AltUni alumnus with access to exclusive job opportunities

Have a look at what our alumni loved about the program!

“AltUni's certification was perfect for my career switch! Top-notch sessions, expert instructors, & outstanding career services made it a fantastic experience. Thanks, AltUni team!” - Indraneel Das, bagged a full-time job offer from Decathlon.

"The course was truly a game-changer! I learned so much & gained skills, as well as new opportunities. I'm grateful for the support and guidance from the dedicated team. Thank you!" - Divyani Darbar, bagged a full-time job offer from Decathlon as a Retail Logistician.

“The program provided ample guidance, content material & support. The practical workshops & sessions were the highlights. Got to know the real-world strategies”, Aditya Raj Dash, M.Sc. (SCM)- Queen Mary University of London

“The sessions were engaging & interesting... makes you go back to work & implement certain topics... Thanks for sharing all the knowledge & best practices”, Roshan Tamhankar, Head (Supply Chain & Logistics) - Parekh Integrated Services Ltd.

Apply Here For Exciting Offers On The Certificate Program & Get Started On A Successful Supply Chain Management Career.