Supply Chain Management (SCM) strengthens the relationship of an organization with its suppliers and buyers by developing better coordination.
If you are looking to gain skills in SCM, consider joining the Supply Chain Management Training Course, offered by pdtraining in Lagos and other cities in Nigeria.
In today’s global market, more and more companies are finding the need to collaborate to grow and expand. With this need, the scope of SCM is also increasing. It is now becoming an effective tool to manage supply and suppliers, costs, inventory, orders, returns and sales. Companies are using supply chain management’s tracking and monitoring methods to develop better plans to maximize profits, minimize costs and strengthening their supply chains.
Core Functions of SCM
Even though primarily SCM is concerned with suppliers and the proper movement of raw material into the organization, it is increasingly adopting areas that are crucial for customer satisfaction. Some of the important functions of supply chain management are:
- Management of suppliers
- Management of Raw Material
- Transportation Management
- Information Management
- Tracking and Monitoring
- Cost Management
- Inventory Management
- Distribution and Return Management
- Management of Supply Chains
- Customer Satisfaction
Connectivity of Different Functions
Many of the internal processes of a company are linked with the external processes. These areas are interconnected and affect profits, costs and customer satisfaction. For example, the raw material reaches the manufacturer from the supplier(s) using transportation. Even in this simple chain, many factors such as inventory management, transportation management, knowledge management, tracking, monitoring, and cost management are conducted.
That is how in a simple transfer of raw material from the supplier to the manufacturer, the management of various areas is required. Due to this interaction and inter-dependence of different functions, a cross-functional approach is used in SCM.
Outsourcing of Functions
Globalization has drastically changed how we work. Businesses have taken advantage of technology to outsource work that can be done at reduced costs. Distribution of ownership of functions is increasingly becoming key to growth and expansion. In a changing environment, supply chain management involves more than management of suppliers. It also involves outsourcing of functions that can be done better, and at lower costs, by others.
Outsourcing of functions does not necessarily mean lack of control. With sophisticated tracking and monitoring methods, manufacturers can easily control functions even if they are carried out by other companies. The function of SCM here becomes more expansive, challenging and fruitful.
Pdtraining delivers 1000’s of professional development courses each year in Lagos, so you can be assured your training will be delivered by a qualified and experienced trainer.
All public Supply Chain Management Training courses include am/pm tea, lunch, printed courseware and a certificate of completion. Customized courses are available upon request, so please contact pdtraining on 08060456905 to learn more.