The importance of a supply chain management to the success of a business company

Large-scale operations might contract with other businesses, such as a shipping company that specializes in quickly delivering products to far-flung consumers. Supply Chain Management Supply chain management involves optimizing your operations to maximize both speed and efficiency. Speed is important because customers value fast service.

The importance of a supply chain management to the success of a business company

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Comment Want to be a "best in class" organization? Then follow the lead of highly successful companies and adopt these 10 practices in your own operation. In today's economic environment, doing what you've always done—even if you do it very well—is no longer acceptable.

Under pressure to contain costs and produce results despite challenging circumstances, you and many other supply chain managers must transform rather than simply improve your operation. That means adopting the philosophies, methods, and processes that will make your organization "best in class.

The answer will vary for each company, but there are some practices that many leading companies are adopting now. This article will outline 10 of the key practices that I and my colleagues have observed through our work as supply chain consultants with clients in a variety of industries and locations.

Article Figures [Figure 1] Example of a supply chain management organization Enlarge this image I do not pretend to have a precise roadmap for achieving the desired level of supply chain maturity and excellence in your particular organization.

The sequence of the 10 practices, moreover, does not indicate priority or suggest a higher or lower importance ranking.

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It does, however, offer a systematic approach for measuring your effectiveness in building a best-in-class supply chain organization. Some of these practices may be simple, straightforward, and familiar. Others may be new to your company. Implement them all and you will have a strong foundation for supply chain excellence.

Establish a governing supply chain council. A governing council's purpose is to give direction and help align supply chain strategy with the company's overall strategy. The council's membership should include the leader of the supply chain organization as well as corporate executives, business unit managers, and other influential company leaders.

Ideally the council should hold regularly scheduled meetings. But even if it doesn't, its mere existence will indicate that supply chain management has the endorsement and commitment of senior leadership.

We often see supply chain organizations struggling for recognition because their objectives and strategies differ from their companies' stated objectives and strategies. A governing council can prevent that from happening by providing constant, consistent validation that the supply chain strategy directly correlates with the corporate strategy.

The importance of a supply chain management to the success of a business company

The council can also help to remove barriers to success that exist within the organization. Every company has such barriers—usually individuals or organizations that don't see or accept the value that a wellmanaged supply chain provides.

By addressing these barriers, members of the council help to ensure that the supply chain organization is given the opportunity to perform up to its potential.For an average business operator, supply chain comparisons made with Starbucks might seem a little daunting at first blush.

After all, the coffee juggernaut generates annual revenues of over $22 billion, operating over 25, stores in six considering that it is opening new stores in China at a rate of one shop every 15 hours, it is showing no sign of taking a breather.

Patience, relentless investment and serial innovation have helped Jeff Bezos’s company “shred the competition”. At some point in the near future, 85% of the world’s products will be available on Amazon.

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That was the startling view, privately expressed, by the head of consumer markets at a. “Simply stated, supply chain is the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole,” James Spann, Practice Leader of Supply Chain & Logistics at Simpler Healthcare, said in a interview.

IntroductionIn the struggle for marketplace advantage, organizations, consultants, practitioners and academics have attempted to organize and integrate supply chain management (SCM) concepts and practices into their business processes.

The Importance of Supply Chain Management It is well known that supply chain management is an integral part of most businesses and is essential to company success and customer satisfaction. Boost Customer Service. Customers expect the correct product assortment and quantity to be delivered.

The importance of a supply chain management to the success of a business company

Therefore, an effective supply chain management strategy is important to implement in order to have a smooth transition of products throughout your supply chain.

A company should always align their supply chain strategy with their overall business strategy and customer needs.

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