Supply chain professionals usually encounter bottleneck dilemma when a company purchase supplies with a multiple list of suppliers. This can be a purchase wherein each product consists of 25 or more parts, components or units.
Furthermore, bottleneck in a business point of view pertains to a part of an item purchase to produce a company’s product that causes delay to production due to some reasons. The most common problem is the unreliable supplier.
Production must be put to a halt due to some lacking parts. That is why it is so called bottleneck since it is associated with the neck of a bottle where liquids are blocked and congested, and the stream of other liquids are delayed. When businesses encounter bottleneck dilemma, the output of a particular project is delayed.
If this situation happens a Certified Professional in Supply Management (CPSM) must know how to handle this predicament for the utmost reason that it causes a chain of reaction from delays of production to delays of delivery which also effects to delay of profit. Once this happens there should be a back up supplier who can guarantee a steady supply.
To simplify things, let’s give an example of bottleneck dilemma on procurement of supplies. A company who produces cars has heaps of components supplied by more than 4,000 suppliers. Just think of it if a supplier does not deliver one part immediately, what will happen? A backlog of work occurs. Projected goals do not meet the date due to some unreliable supplier, now, this should be anticipated by CPSM, and reducing bottlenecks is one priority that has to be address in an instant, may it be short term or long term bottlenecks for reasons that they can create problems in terms of lost profit, dissatisfied customers, wasted time and poor quality in service.
CPSM experts can identify signs of bottlenecks when there is a long wait of supplies which are delayed because it also means delay in work and too much work piled up at the other end and not enough at the other end and one way to easily identify bottleneck is to make a diagram of the course of the production. The diagram breaks down the system, this process makes it much easier to identify where and what department bottleneck occurs. There is also some option to unblock bottlenecks that is adaptable to a company since there is no structured framework of solving it which CPSM professional must study and apply to its company. Bottleneck causes major problems, identifying it earlier must be prioritized.
If you want to become a successful procurement officer, the secret is to forget the idea that you know everything when it comes to supply chain. Remember that triumphant supply chain professionals succeed through their intensive training and experience. Thus, if you are still new in the business it is time for you to invest on certifications.
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