Supply Chain Management (SCM) is an essential element to the operational efficiency of any enterprise—they may be in business or, otherwise. In fact, if we really come to think about it, the world is one big supply chain; not to mention the ever-growing trends in regionalization i.e., ASEAN, EU, CELAC etc.
Consistent with our common goal of inspiring new generations of supply chain management professionals around the world, and with the consent of ASU – W. P. Carey School of Business and the Department of Supply Chain Management; I am honored to feature in this article their well-thought-of video-production that could very well introduce uninitiated-readers to the exciting and growing field of supply chain management (SCM). To watch a particular video-clip, simply right-click the corresponding links below:
- What is SCM?
- Buy It: Managing Supply
- Make It: Manufacturing and Operations
- Move It: Transportation and Logistics
- Sell it & Service It: Retail Considerations
- Supply Chain Integration
- Global Supply Chain Management
- Socially Responsible Supply Chain Management
- Business Processes
- Measuring Performance
- Quality Management
- Supply Chains and Information Technology.
SCM’s Role in Society
Supply chain management is necessary to the foundation and infrastructure within societies. SCM within a well-functioning society creates jobs, decreases pollution, decreases energy use and increases the standard of living. Two examples of the effect of SCM within societies include:
- Natural Disasters e.g., Hurricane Katrina (US 2005), Typhoon Haiyan/ Super Typhoon Yolanda (Philippines 2013)
In 2005, Hurricane Katrina flooded New Orleans, LA, leaving residents without access to food or clean water. As a result, a massive rescue of the inhabitants had to be made. During the first weekend of the rescue effort, 1.9 million meals and 6.7 million liters of water were delivered. A similar scenario can be extended to the Philippines back in 2013.
- Foundation for Economic Growth
A society with a highly developed supply chain infrastructure that includes interstate highways, a large railroad network, ports and airports is able to trade many goods at low cost. Business and consumers are able to obtain these goods quickly, resulting in economic growth.
SCM’s role in Business
Clearly, the impact that SCM has on business is significant and exponential. Two of the main ways SCM affects business include:
- Boosts Customer Service
SCM impacts customer service by making sure the right product assortment and quantity are delivered in a timely fashion. Additionally, those products must be available in the location that customers expect. Customers should also receive quality after-sale customer support.
- Improves Bottom Line
SCM has a tremendous impact on the bottom line. Firms value supply chain managers because they decrease the use of large fixed assets such as plants, warehouses, and transportation vehicles in the supply chain. Also, cash flow is increased because of delivery of the product can be expedited, profits will also be received quickly.
Supply chain management helps streamline everything from day-to-day product flows to unexpected natural disasters. With the tools and techniques that SCM offers, you’ll have the ability to properly diagnose problems, work around disruptions and determine how to efficiently move products to those in a crisis situation. In addition, SCM principles and practices can be applied to customer satisfaction and company success, as well as within societal settings, including medical missions; disaster relief operations and other kinds of emergencies; cultural evolution; and it can help improve quality of life.
Supply chain management touches major issues, including the rapid growth of multinational corporations and strategic partnerships; global expansion and sourcing; fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy and bottom line. Because of these emerging trends, supply chain management is, probably, the most critical business discipline in the world today.
- Supply Chain Management: Strategy, Planning and Operations 5e by Chopra and Meindl, Prentice-Hall, Copyright 2013;
- Operations Management 11e (Chapter 11 and 11s) by Heizer, Pearson Publishing, Copyright 2012;
- Supply Chain Transformation: Practical Roadmap to Best Practice Results by Sherman, R. Wiley 2013;
- Service Management: An Integrated Approach to Supply Chain Management by Hacksever & Render , Pearson Publishing, Copyright 2013;
- Logistics & Supply Chain Management 4e by Christopher, Prentice-Hall, C 2011.