In supply chain management, supply chains are analyzed in terms of their performance using supply chain metrics such as supply chain flexibility, supply chain agility, and supply chain visibility. Measuring supply chains allows managers to see where changes need to be made so that every process makes the most efficient use of resources possible. For example, there may be a supply chain bottleneck where a single process slows everything down. By analyzing supply chains, supply chain managers can see that one or more operations should be improved, so the supply chain runs better overall.
For supply chains to work efficiently, there needs to be reduced distance between suppliers and retailers, decreased lead times (time from production to distribution), and good supply chain visibility. In short, supply chains need to allow for the prompt delivery of items while minimizing costs since these two factors affect both productivity and consumer satisfaction. Conversely, if supply chains aren't efficient, it means increased costs for all parties involved in a supply chain.
The supply chain manager manages supply chains and links other business functions such as product development, logistics, sourcing, and customer service. These supply chain links help companies meet their objectives and remain competitive. In supply chain management, there are six crucial supply chain functions: supply, procurement, manufacturing, inventory, transportation, and information flow. All of these functions need to work together if a supply chain is going to be effective. For example, the right amount of stock needs to be available so that no items sell out immediately but not before enough have been produced either! So if you want to be a supply chain management expert, join IIENSTITU and learn today!
