Simply put, supply chain management is the oversight of a company’s supply chain. That is, the chain of processes that result in the movement of a product or service from its point of inception to its end user. Strategic management of the supply chain is important for striking the right balance between speed and efficiency.
A typical supply chain includes multiple organizations, each responsible for a different aspect of the product or service’s transfer to its customer. Because the supply chain is comprised of many different pieces working to meet a common goal, proper oversight is necessary to keep things on track.
What does supply chain management involve?
Beyond general oversight, supply chain management involves actively coordinating the flow of the product or service between organizations and ultimately, to the consumer. Effective supply chain management works to optimize the performance and value of the entire range of supply chain processes, maximizing efficiency while decreasing costs.
Why more effective supply chain management matters
Greater visibility and control means efficiency savings in all areas of your business.
A successful supply chain management strategy enables businesses to see and control the flow of goods and services across the company, geographies, and the entire business, and yet many find it a struggle. According to a report by GT Nexus:
- 27% of US manufacturing organizations struggle to keep up with ever changing customer demands.
- 12% of US manufacturing organizations face a high level of risk in global markets.
- 11% of US manufacturing organizations struggle because they have a globally dispersed network of partners.
Regardless of the size or location of your business, taking the time to construct an effective supply chain management strategy and investing in the right solution will deliver big rewards in both the short and long term.
Make better decisions
Supply chain management can be complex, and getting rapid access to the insights and data you need in any area of your operations, whenever you need it, is critical for capitalizing on valuable opportunities, identifying where savings can be made, and ensuring any potential risks get flagged as early as possible. Greater insight and live data mean you can respond quickly and accurately to any situation—such as a successful marketing campaign or shifting customer demands.
Collaborate with anyone, anywhere
Communication is a crucial part of your supply chain management strategy. Make sure you can manage and collaborate with suppliers instantaneously, anywhere in the world, with one centralized source of information and user-friendly instant communication tools. Empowering everyone to make better decisions with easy access to the same accurate data, will ensure you control costs and maximize profits across your entire supply chain.
Satisfy more customers
Accurate, rapid fulfillment is one of the fundamental pillars of customer satisfaction, and in an increasingly price-competitive marketplace, great customer service is what will really set you apart. Get orders right and on-time, every time, with better warehouse management, inventory tracking, and clear oversight of shipping and logistics–and inspire trust and confidence in your customers so they'll keep coming back.
Save money and time
Managing and maintaining clear visibility over your whole supply chain can be immensely time-consuming, with many day-to-day admin and data entry tasks requiring constant attention. Find supply chain management software that allows you to automate data-intensive routine tasks and processes to bring down overheads and free up your precious time, so you can focus on what matters most.