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Newsletter |
Supply Chain Management ? Whose job is it anyway?
Supply
Chain Management is a term that we have all become familiar with, but
really, whose job is it? Is this the job of someone appointed as a
Supply Chain Manager? Or do all in the management team have a need to
understand the elements of Supply Chain Management? By this we are
referring to managers who hold positions such as Finance, IT, HR, Sales
and Marketing. Not to mention all the functions who contribute directly
to the supply chain such as: Operations, Logistics, Procurement,
Manufacturing, Planning.
It has become necessary for everyone, i.e. all functions in the business, to know and understand the impact of the supply chain. Rather than just an operational requirement, Supply Chain Management has become an important strategic element that affects all functions within a business and should be discussed regularly at Boardroom level.
For example: inaccurate MRP calculations can lead to poor raw material planning, which impacts cashflow because working capital is tied up in the wrong stock being ordered, or there is a need to expedite material at a higher cost in order to meet production demands. This scenario has an impact on Finance, Procurement, Warehousing, Production and ultimately on Sales. These are the elements of the Supply Chain which are affected by this simplistic example.
If all the decision makers had an understanding and input to the supply chainplanning process, then many problems could be alleviated. Sharing and trusting information throughout the supply chain embraces the concept of collaboration. Collaboration has been highlighted as one of the most important elements of globally successful supply chains. That is, collaboration both internally in a business across functions, and also externally with suppliers and customers.
A business is ultimately measured on the efficiency of its supply chain; everything that a business does is directed towards achieving customer delight, so all functions in the supply chain must be aligned to this goal. Taking inputs into account from both Suppliers and Customers in the extended supply chain provides valuable insight which can be used to streamline processes. Globally, it is apparent that competition in industry is no longer between businesses - it is between Extended Supply Chains.
To deliver the levels of customer delight necessary to grow the business, it has become more and more essential to rely on great relationships with the external partners (Suppliers and Customers) and smoother, well-oiled relationships among all functions within the business.
So whose job is supply chain management? Whilst it is necessary to have a specialist who takes responsibility for the smooth running of the supply chain, it is also vitally important that every function in the business knows that they have an influence, and should therefore understand their impact on the efficiency of the supply chain.
Talk to us about a workshop for your team to cover the principles of Supply Chain Management aimed at decision makers.
For more information, please contact Colin Seftel
It has become necessary for everyone, i.e. all functions in the business, to know and understand the impact of the supply chain. Rather than just an operational requirement, Supply Chain Management has become an important strategic element that affects all functions within a business and should be discussed regularly at Boardroom level.
For example: inaccurate MRP calculations can lead to poor raw material planning, which impacts cashflow because working capital is tied up in the wrong stock being ordered, or there is a need to expedite material at a higher cost in order to meet production demands. This scenario has an impact on Finance, Procurement, Warehousing, Production and ultimately on Sales. These are the elements of the Supply Chain which are affected by this simplistic example.
If all the decision makers had an understanding and input to the supply chainplanning process, then many problems could be alleviated. Sharing and trusting information throughout the supply chain embraces the concept of collaboration. Collaboration has been highlighted as one of the most important elements of globally successful supply chains. That is, collaboration both internally in a business across functions, and also externally with suppliers and customers.
A business is ultimately measured on the efficiency of its supply chain; everything that a business does is directed towards achieving customer delight, so all functions in the supply chain must be aligned to this goal. Taking inputs into account from both Suppliers and Customers in the extended supply chain provides valuable insight which can be used to streamline processes. Globally, it is apparent that competition in industry is no longer between businesses - it is between Extended Supply Chains.
To deliver the levels of customer delight necessary to grow the business, it has become more and more essential to rely on great relationships with the external partners (Suppliers and Customers) and smoother, well-oiled relationships among all functions within the business.
So whose job is supply chain management? Whilst it is necessary to have a specialist who takes responsibility for the smooth running of the supply chain, it is also vitally important that every function in the business knows that they have an influence, and should therefore understand their impact on the efficiency of the supply chain.
Talk to us about a workshop for your team to cover the principles of Supply Chain Management aimed at decision makers.
For more information, please contact Colin Seftel