Importance of Supply Chain Management

Right from the procurement of raw materials to the delivery of finished products, all the activities that are involved in the process is said to be supply chain. These activities include procurement, production, distribution, sales etc. The process of managing all these activities is known as supply chain management. Supply chain management system involves decision making at various levels such as procurement, logistics, and production, forecasting the demand etc. to ensure timely delivery of finished product and reducing the cost, and getting trained in supply chain management online training is the decision you take may break or make your company.

Let us see the following case:

Whirlpool brand has long been associated with reliable household appliances; its delivery performance in 2000 was anything but reliable. In every measurable way, the supply chain was failing to meet expectations – inventory quantities were either too low or too high, or they had the wrong items in inventory, or they had the right inventory delivered to the wrong place. These inconsistencies were frustrating to retail partners and customers alike, and it was clear to executive leadership that these supply chain management issues had to be fixed. Of course, this situation that Whirlpool found itself in did not come about overnight. In fact, many of problems that led to this crisis were a result of the company’s geographic expansion and business acquisitions. With many different systems and procedures cobbled together into an unwieldy mess, the supply chain management team found that this complex, patchwork reporting made it exceedingly difficult to track and control all of Whirlpool’s production and distribution processes.

Due to these supply chain issues, the company’s overall availability rate – which measures how often a product is in the right place at the right time – was only 83% in 2000.* Relative to industry standards, this was considered a dismal failure. The unfortunate irony of the situation is that availability was low even while total inventory levels were often too high. In terms of supply chain management, Whirlpool was at a competitive disadvantage. When you realize the financial impact of Whirlpool’s supply chain initiative, it’s easy to understand why companies in every industry are actively seeking to hire qualified supply chain management professionals – and offering them substantial salaries. Whether you’re looking to advance in supply chain management or transition into this growing field, formal training will provide the skills and knowledge you need to excel.

This case clearly tells us how important it is to know how supply chain works and take the decisions accordingly to meet the customer demand. The case also tells how crucial it is for organizations to master the good practices of supply chain management.

Supply chain management course online training to Your Employees is it Necessary? Yes it is! And, one of the fastest and easiest ways your expertise in this area is through the 100% online supply chain management training.