Supply Chain Management is the handling of the entire production flow of a good or service - starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (links in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users.
One of the best ways for businesses to serve their customers well is to make effective supply chain management a strategic priority. What is supply chain management? Simply put, supply chain management oversees all the processes that integrate suppliers to work efficiently together to move a product from creation to the customer's hands, taking into account supply and demand along the way.
The supply chain includes all the activities, people, organizations, information, and resources required to move a product from inception to the customer. For example, in the consumer goods space, this likely spans raw materials, production, packaging, shipping, warehousing, delivery, and retailing. The end goal is simple: meet the customer's request. "By balancing supply and demand across all members of the supply chain," Frayer says, "organizations and channels work together to move the product."
Supply chain management is crucial for any organization because doing it well can introduce several benefits to the organization; however, poor supply chain management can result in very expensive delays, quality issues, or reputation. In some cases, poor supply chain management can also cause legal issues if suppliers or processes are not compliant. Technology advances have unlocked huge potential for supply chain management, enabling supply chain managers to work closely - and in real time - with members of the supply chain. With supply chain management, organizations can: Anticipate problems, Dynamically adjust prices, Improve inventory and fulfillment
Lowered Costs: By integrating suppliers and applying technology, organizations can lower operating costs by responding more dynamically to customer needs. For example, managing based on demand keeps organizations from over-producing, which not only reduces labor and raw materials costs, but also cuts down on inventory management costs and transportation costs.
Increased Revenue: When organizations use technology to stay closer to customer demand and respond more quickly (as in the Walmart example keeping shelves stocked), it's more likely products remain available for customers to purchase. When manufacturing is streamlined to produce just enough, labor and materials can be devoted to developing new items to offer the customer and expand the product mix. Outside the product realm, this may mean offering additional services customers.
Asset Utilization: With effective supply chain
management, organizations can use capitol assets, like production
or transportation equipment, most effectively. Rather than adding
wear and tear to manufacturing equipment needlessly, businesses can
produce to the need.
Supply chain management allows organizations to deliver more quickly, ensure products are available, reduce quality issues, and navigate returns with ease, ultimately improving value, both within the organization and for the customers.
The criteria vary from college to college but you should maintain a minimum of 50% aggregate in graduation.
The advancements in science and technology have led to the global expansion of business thus increasing the complexity in various sectors. With growing demands in supply chain architecture trained business professionals in the discipline of Logistics Management can provide:
Logistics Management is an integral part of Supply Chain Management and manages a structured flow of perceptible items including food, equipment, materials ranging from raw materials to finished products of various industries, and imperceptible items like time and information on the supplier as well as the customer's side. A Management course in Business with a specialization in Logistics provides a strong foundation for students interested in careers in Distribution, Operations Management, Transportation, Marketing, and Procurement.
Here are the varied career opportunities you can discover after completing MBA in Logistics: