Supply Chain Training
Supply Chains and Supply Chain Professionals
Businesses are about profitability! It may however come as a surprise to some that Supply Chains that are integral to most businesses are as much about revenue enhancement as they are about cost optimization and cost reduction.
The wise understand the importance of the oft quoted adage “Competition in the future will not be Company v/s Company but Supply Chain v/s Supply Chain”. Successful Corporates therefore have not limited themselves to effecting cost reductions for their logistics but have successfully integrated and leveraged the Supply Chain network as one of the key business drivers to ensure sustained business growth and customer satisfaction.
The Council of Supply Chain Management Professionals (CSCMP), a premier organization of supply chain practitioners, researchers, and academics defines supply chain management (SCM) as a function that encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all Logistics Management activities.
Logistics management on the other hand as per CSCMP is that part of SCM that plans, implements, and controls the efficient forward and reverse flow and storage of goods, services, and related information between the point of origin and point of consumption in order to meet customer requirements.
Inherent in the supply chain definition is the criticality of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. Supply Chain Management thus integrates supply and demand management within and across companies.
According to a McKinsey & Company study, "by the year 2020, 80% of the goods in the world will be manufactured in a country different from where they are consumed compared with 20% now."
Such a shift and trends towards increased globalization, free trade and outsourcing all contribute to a continued and growing interest in logistics/SCM as also criticality of an individual’s ability to apply the key understandings towards contributing to business growth consistently.
A complex network to integrate this dispersed production, movement and consumption of goods will require consistent high performances by all stake holders and associated supply chain processes. Collaboration and coordination will thus be the keys to achieving the benefits of supply chain integration.
The Supply Chain managers would therefore need to brace and prepare themselves to address the following fresh challenges in addition to their current briefs:
- Ability to grasp and contribute to a revenue generation strategy for the supply chain in addition to focusing merely on the cost reduction.
- Grasp and be able to deliver comprehensive benefits (across the network) of SCM that may be easy to identify but may prove to be challenging to deliver.
- New skills and understandings will be required to ensure lasting coordination and collaboration, along with trust.
- Supply Chain managers of tomorrow will need to understand the nuances of leveraging ever changing advanced technology as SCM is more complicated than swapping data between companies and among the various functional areas within a firm.
- Managers have to work with accounting systems that would transcend Organizational boundaries. This will be required as it would assist channel members to identify supply chain benefits and track their location in the network thus ensuring their significant and sustained growth and lasting engagements.
Expectations therefore from the Supply Chain professionals now transcend the traditional expectations of managing their individual briefs and mostly in a standalone mode/ silos. The teaching curriculum will therefore require re-structuring with inclusion of additional topics currently not forming part of the programmes on offer at most of the institutions with greater emphasis on a more contextual understanding of the concepts studied!
Efficient and effective management of the Supply chain network now, demands proactive and empathy led partnerships sustained by trust and willingness to collaborate and compromise by all entities in the network. Majority of the logistics managers are however trained in subjects such as marketing, operations, and quantitative methods. It therefore is now important that Supply Chain professionals are also trained in organizational behaviour and psychology for them to effectively contribute to Organizational growth.
Organizations, even in India are now coming to terms with the criticality and a desire to harness power of an efficient, integrated and comprehensive Supply Chain and as such expect their managers to not only understand the logistics but be also competent and excel in collaborative techniques, relationship and trust building skills and skills for compromise – a paradigm shift indeed. Those who see the writing on the wall would step up and upgrade to safeguard their own and their organizational business interests.
We understand the environmental expectations and can help you in staying current and relevant – we all are aware of the happenings in the IT sector i.e. those who did not act in time were acted upon!
As they say, “there are some who move when they see fire others only when they feel the heat!” Where do you stand?
Value Supply Chain Solution would be happy to support you in being future ready! Do connect with us for details at firstname.lastname@example.org or fill up the form below: