Supply chain management is very helpful during tough time when the costs are rising and losing on sales. This chain management helps in maximizing the use of available resources and cash. The following are the few reasons for why development and implementation of supply chain management is important in an organization.
1. The Institute of Supply Management indicates that just a reduction of 2.5% in procurement cost can produce the same amount of profit which a 10% sale can generate.
2. Companies that apply standardized processes have managed to make 73% more profit in comparison to the organizations that lack this profitable chain management according to “Process Standardization Proves Profitable” was published in Quality.
3. By lowering the cost, improving the productivity and with the growing opportunities a return of 40% on investment can be achieved by applying supply chain management in “Build Supplier Metrics, Build Better Products” which was published in Quality magazine.
The efficiency through Supply chain management can be achieved by optimization of individual unified parts. Nowadays many leading companies are getting benefited through supply chain management by procuring resources and providing value to the customers. All other organizations should also apply the formula of making profits by reducing cost in procuring raw material. The professionals in an organization make use of their analysis and implement solutions by identifying areas where action is required. The correct knowledge of using the tools and applying the techniques are the signs of high efficiency managerial skills.
There are techniques based on two types of analysis: the qualitative study and the quantitative study. The Qualitative study or the analysis helps in discovering the significant points in achieving targets through the process of report reviews and interviewing people. The Quantitative data analysis is helpful in evaluation of important data collection, analyzing it and than producing actionable and relative information. The tools using these techniques can be as complex in nature as an Enterprise Resource Planning (ERP) Software Solution or as simple like a spreadsheet. The organizations unique circumstances determine the appropriate tools that are required.
Understanding of Supply chain managerial analysis is more than procurement or purchases made by an organization. The complexity nature of the supply chain requires a vast knowledge in this field which includes understanding and managing the 14 purposeful areas which are: purchasing or procuring, sourcing, logistics or inventories in process, quality supervision or management, stock or inventory control, stock management, receiving, shipping or transportation, packaging, disposal management, warehousing, allocation or distribution, manufacturing supervision, product and service development. Having the CPSM certification adds value to the personnel in the supply chain management industry. If you are trying to make a career in this field it good to have the best qualification.
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