September 20, 2020

The Importance of a Good Supply Chain Management

By Babbu

supply chain

Best-in-class supply chains are set apart by their own set of unique qualities that define them as the best in the business. These qualities include highly organized order processing, efficient utilization of existing resources, high speed, customization, innovation, quality performance, resource efficiency, compliance, and high energy efficiency. These qualities set these businesses apart from all other organizations and make them more productive. Organizations of different sizes require a customized plan of action in order to achieve best results.

Cost effectiveness, availability of materials and tools, and efficient operations are important factors of these organizations. The utilization of existing resources and the implementation of efficient processes to get the job done will definitely save the organization money. This will ultimately translate into better productivity.

Information is the key to success for organizations. A well-managed information system will help the managers to gain valuable information in order to improve performance and manage the processes effectively. For instance, information on the current situation of the organization, new orders, and customer queries can be easily collated using a simple software system. It is a cost effective way of monitoring the entire supply chain.

Activities in a supply chain are always related to other activities. They are interrelated. As a result, it is very crucial for an organization to maintain an effective communication network with all the organizations in order to keep a check on the activities and the progress of each and every process. If there is a breakdown in the communication network, there will be severe consequences. All processes of the supply chain can be disrupted.

People’s participation is another factor to consider in this relation. Each and every person need to be engaged in this process of management so that there is effective information exchange. It also provides opportunities for better interaction between different people. This will ultimately lead to a positive feedback. People can also provide feedback directly to the people at higher levels.

Organisations should also keep a track of their resources. The more they have the more they are able to manage their activities. If the resources are not enough to do the job, then the organization will find it hard to cope up with the workload.

Every business process has a specific time table. Therefore, it is imperative that all the activities take place at a regular interval. For example, production of goods must be done in a fixed time frame. The activities must be scheduled accordingly.

Every organization needs to adopt an open and honest approach towards their customers. It is important to build relationships with the suppliers so that they can provide products that are at their own optimum level. They also need to show gratitude to them for the services they render.