Supply Chain Management is an extremely important part of running any kind of business. Supply Chain Managers do not only work for stores and companies responsible for making goods, but Supply Chain Managers can work almost anywhere, including hospitals, banks, auto dealers, hotels, and airlines. That is why it is important to understand what Supply Chain Management is; however, many people are unfamiliar with it. Most people assume that Supply Chain Managers are simply responsible for buying the right amount of a good, but there is much more to Supply Chain Management than that. According to
Lynda, the job of a Supply Chain Manager is to make sure that the customer has access to a product when and how they want it. That sounds very simple, but there's actually a lot that goes into making simple products.
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For example, in order to produce a simple good like a water bottle, there are many processes and resources needed. First, you need the empty bottles and caps. In order to ship those, you will need boxes, pallets to put the boxes on, a fork lift to move the pallets, a fork lift driver, a truck, a truck driver, fuel, and insurance. Then, you need the label. This means you need the resources to design, print, and ship the labels to the plant (another truck, truck driver, fuel, and insurance). Next, you will need a bottling plant. In that bottling plant you need employees, lightbulbs, garbage bags, machine parts, janitorial supplies, toilet paper, and all other supplies that would be used at the plant by employees. You also need access to water, machines to purify the water, and machines to put the labels on the bottles. Then, once again, you need more supplies to transport the bottles. That does not even cover everything needed for producing water bottles. As you can see, many resources go toward creating a simple product. Supply Chain Managers are responsible for making sure that all of this happens successfully at minimal costs, making a high quality product.
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One key component of successful Supply Chain Management is team work. Often times, in order to have good Supply Chain Management, many people work together on a team. In order for the team to be successful, the teams must trust each other, accept individual goals, understand the group goals, and be committed to improving. Another key component of Supply Chain Management is understanding trade-offs. In Supply Chain Management, most of the time, the trade-offs may include money, quality, time, and/or flexibility. Supply Chain Managers need to know which of these is most important and which can be of lower prioritization. Last, Supply Chain Managers need to understand the importance of quality. The product can only be as good as the items used to make it. Also quality is what encourages consumers to buy the product. Therefore, Supply Chain Managers should be sure that they are buying high quality resources. These are just a few of the basic concepts of Supply Chain Management.
-Brianna