Understanding supply chain management in this corporate world

A profitable business is every entrepreneur’s ticket to true success. The entrepreneur’s career ladder always starts with an idea and then moves on to selling that idea to the market. There are no shortcuts to undertake. It is an ongoing process. Every aspiring entrepreneur must learn, execute and study more the market that he wants to face. Selling products and services is a business, however, an entrepreneur must try harder to win and achieve stability, profitability, and dominance among competitors. The business world is much more challenging when businesses these days are beginning to welcome modern marketing methods and systems to improve sales. Almost every company has its corporate office in addition to its main factory. Generally located in high-rise buildings in the main cities of each country, these offices aim to observe best practices in supply chain management (SCM) and establish excellent customer relationship management (CRM).

What is happening in the business world?

We all know the rules of the business. From the Chief Executive Officer (CEO) to the lowest ranking employee in terms of job function, the primary goal of every business or corporation is to offer products and services that deliver customer satisfaction at the highest level. Work, jobs, projects, issues, problems, delays, and brainstorming sessions lie between these two endpoints of business operations. We often see in mainstream TV news, on the Internet, in newspapers, and at media press conferences that business critics, economists, and market analysts are discussing the latest moves by the CEO and top executives of the company. company. A company acquires this company. Two companies merge. Sometimes it’s the bad news; A company declares bankruptcy. This is becoming routine in the business world or technically, the corporate world. Not all businesses are successful. The competition is always there and it is always a challenge for each company to offer their best moves to win customers.

The truth about supply chain management

When it comes to supply chain in business, there are three key performance indicators that dictate the win-lose game. They are the cost of products and services, the cycle time in delivering these products and services to customers, and the quality that, if delivered with excellence, will make all customers happy. Wikipedia defines Supply Chain Management (SCM) as “the management of a network of interconnected companies involved in the provision of packages of products and services required by the end customer in a supply chain”. The meaning is clear; It has something to do with managing customer needs. That is actually the purpose of entrepreneurship. The entire corporate world is fighting for customers. And if we establish this link from one commercial operation to another within a company, there is no reason to say that they are not interconnected. Therefore, the failure of a process could mean the rupture of the chain and the utter inability to supply customers with what they need at the correct cost, in the fastest delivery time and with the highest quality.

SCM is about winning the market

We can relate SCM to the Law of Supply and Demand. The price of any product depends on the quantity produced and the quantity demanded. When a certain price is set at a certain time, competition between suppliers becomes tougher because customers have the option of choosing where to buy the products or services they want. The SCM depends a lot on this law; which is why corporate executives always want their SCM team to be more sensitive to market movement. Whenever there is a need for adjustment, it will be dealt with accordingly and in a timely manner until a final winning decision is made. That is why many companies and corporations invest heavily in acquiring the best talent in SCM. Business analyst, financial consultant and SCM specialist; His role is to help the company survive the competition and, in any business way, win the market.

An excellent relationship with suppliers will improve profitability

An effective way to conquer the market is to strengthen the relationship with the company’s suppliers. In fact, this is always the starting point of every company’s SCM operation. From the acquisition of raw materials, consumable items, new machines or even services that will help deliver products and services to customers, the supplier will do everything for the company that is his customer. If your suppliers show low scores on these three key performance indicators, it will surely affect your entire operation. Therefore, the goal of your SCM should be to ensure that suppliers are aligned with your primary business objective: profitability for success.

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