Role of supply chain management in business


20 December 2019


supply chain management

In recent times, supply chain management (SCM) has had a huge impact on global business. The presence of an efficient SCM system can directly improve customer service, benefiting the producers and distributors simultaneously. This article talks about the operations that supply chain management encompasses and the advantages that it comes along with.

Supply chain management ꟷ definition

Supply Chain Management (SCM) is an important part of every business organization, no matter the size. It refers to the effective management of stock chain activities to maximize customer benefit and gain a sustainable competitive benefit in the international marketplace. In addition to this, SCM also deals with the movement and storing of materials needed to create the final product, inventory management and keeping track of finished goods.

Another important aspect of SCM is the strategic alignment of end-to-end business processes to determine market and economic value. Keeping a good supply chain management system in place can drastically improve the efficiency of plants, warehouses, and transportation vehicles. In brief, SCM plays a crucial role in the final standing point of a company.

The importance of employing supply chain management to business

supply chain management

Supply chain management has turned out to be an essential part of a business and is crucial to every company’s progress and customer comfort. This is because SCM has the power to increase customer service and reduce operating costs. It also improves the financial position of a company. The following pointers explain how supply chain management helps a business to execute all of this:

  • Meeting customer expectations to deliver the correct product mix and quantity to be delivered on time, in the right location;
  • Providing efficient follow-up support right after a sale is made;
  • Decreasing the purchasing and production cost, for example, quick distributions of costly products and raw materials;
  • Setting up a proficient SCM system to design a network that meets customer service goals on behalf of wholesale manufacturers and retailer suppliers;
  • Assisting businesses to control and decrease supply chain expenditures, thereby increasing profit leverage;
  • Reducing the use of large fixed assets such as plants, warehouses and transportation vehicles, which can essentially diminishing cost;
  • Enhancing cash flow by contributing to the speed of product flows to customers.

The structure of an SCM degree curriculum puts emphasis on leveraging the effects of the operations, as well as the effects of supply chain management on business performance and its objectives. Choose to obtain knowledge with Diploma in Supply Chain Management today and gain a fundamental understanding of company SCM from a global perspective.

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Factory Automation and Why It Has Been a Cause for Major Job Security Concerns

Automation has been the source of concern for centuries, from the 16th-century mechanization of stockings production to the 19th-century industrial revolution that led to the UK’s textile riots. From the late 20th-century automation of car manufacturing to the 21st century, worries that Artificial Intelligence will eventually take up our jobs. Job security is an issue that brings forth conflict among manual laborers—resulting from the automation of repetitive manual tasks. Automation has replaced many jobs over the years but has also given rise to other specializations in industries. Major manufacturers have employed robots to level with consumer demands because they are efficient and fast in task completion while playing a massive role in keeping these businesses highly competitive. To provide a clear understanding of the impact automation has had in industries, let’s dive deeper into the jobs’ technicalities in these places. Automation by Job Type- Robots execute blue-collar jobs faster and more efficiently than the human workforce, an effect that has highly optimized the production process. However, jobs requiring intuition and creativity, such as product design, and artistry require empathy, making them reserved for the human workforce. The human workforce also retains jobs that appreciate soft skills, such as effective communication, collaboration, leadership, and a problem-solving mindset. That being an overview of the automation effect, let’s dive deeper into factory-related jobs and how automation has affected them. Creative Jobs: These jobs require a human eye and mind and combine procedural tasking with intuition in their execution. While proper product design does require a certain level of technical know-how, it also asks for a deeper understanding of why people like the look and feel of these products. In manufacturing industries, designing products may require a focus on the technical application of the product and cater to the look and feel of these products. An API valve manufacturer, for example, may decide to automate the production of the product. However, to tailor for customers that care for factory aesthetics, they require a human understanding of the design process. Automation can play a role in tasks such as drawing, 3D printing, and data analysis. These artistic job descriptions probably have a higher sense of security than others. Technical Jobs: Following product design is the manufacturing process involving technical activities such as assembling parts to come up with a wholesome product. A car manufacturing factory may implement robotic arms, each responsible for joining parts of a vehicle together, working with more efficiency and speed than a human. After putting together the product, there is a proper packaging requirement in preparation for shipping. A robot performs packaging tasks as they are repetitive and technical. The packaging process does not engage in human creativity; thus, automation is probably the better option for such work. However, in other industries such as food processing, products’ packaging may require customization--a process requiring making phone calls, listening to ideas, and making constant changes to the product’s packaging. We employ automation for the job’s technical and repetitive parts; however, to understand human needs, a human being is needed. Transportation of the products to the expected locations is the final process in manufacturing. We can automate the package addressing systems in preparation for transport. Soon, however, there is a possibility that autonomous vehicles will replace transport drivers. Currently, smaller package delivery employs drones in some parts of the world. Leadership and Collaborative Jobs: Top managerial job descriptions have the least possibility of automation because they require effective coordination, communication, and decision-making. These professionals employ a combination of technical know-how, emotional intelligence, and in some, risk-taking-- we cannot reach a balance through automation. Automation cannot replace these individuals, partially because they might resist losing their jobs since they decide which tasks to automate and which not to automate. The Solution to The Conflict: The fear that automation will eventually take up all jobs exists. To keep the conversation healthy, positive, and practical, we need to educate the masses on what automation means and the types of jobs it can take over. The first step towards education is learning, learning the fear, and learning communication strategies. Understanding communication techniques will ensure that proper education occurs. The second step is the actual training of professionals, which involves educating employees in preparation for the jobs they are to transition to during automation. However, it is essential to note that automating the training process might result in a larger conflict. Partially because we know that resolutions cannot be sufficient when executed by who causes the conflict. The third step is to ensure regular training occurs by providing relevant and up-to-date information and training materials. At first, individuals will be reluctant to change job descriptions, which we can resolve through the previously discussed process. Conclusion: Automation and job security have been and will always conflict.; however, a balance is struck each time it has happened. We currently live in a world with fear of automation from watching various films, such as The Terminator, the Transformers, and others. Some still expect to see a world similar to that in the movies. The reality is that we use robots to perform repetitive tasks that we have complained about for ages. Do not be fearful, instead educate yourselves on automation. Do this with a keen eye on the jobs that seem impossible to automate. All the best. Read Also: 3 Encryption Trends and How They Make Communication More Secure Why Sensors are Essential in Machine Automation Seven Great Reasons to Use a Car Transportation Company

Your Business

Why Correctly Valuing Your Business Is Essential

Knowing your business's accurate value can be helpful if you plan on selling your brand someday. However, the fear sellers have in getting the best possible price is understandable. Selling your business is one of the most significant events in your professional life. While this brings some caution, it should also be exciting as you move on to your next adventure. Before you start the process, it's a good idea to use a valuation calculator to get an idea of how much your business is worth. Gathering as much information as possible about your business is essential. Preparation is key. With that in mind, here are 6 key tips to help you value your business correctly. Tips To Help You Value Your Business Here are some ideas that can help you understand the valuation of your company: 1. Understand Price-To-Earning Ratio (P/E) It is typical for businesses to use the price-to-earnings ratio to understand their value. This tip works best for companies that have an established profit track. The P/E will be higher if the business has high-profit growth. Let us take an example — if your company makes $500,000 profit after taxes and you utilize the P/E ratio of 4, it means your business will be valued at $2,000,000. The P/E ratio will depend on the growth ratio of your company. For instance, start-ups will have a higher ratio because they are high-growth businesses. On the other hand, high-street companies, like real-estate companies, will have a lower P/E ratio. Since P/E ratios can differ extensively, no standard ratio can be used to value all types of businesses. In most cases, the valuation between 4 and 10 is used as the standard. 2. Cost Of Entry This tip is quite simple — this is the total cost of setting up a business similar to the one being valued. In this case, you will have to consider every factor that helped the business get to where it is today. This involves all the costs, tangible assets, building a customer base, recruitment, etc. Next, you need to think about all the money you can save while setting up the business. For instance, the costs you save by using cheaper material alternatives or setting up the business elsewhere. To get the entry cost, you need to subtract the latter (saved money) from the former (the cost of setting up the business). This is your valuation. 3. Valuing The Business Assets In the case of established and stable businesses, these companies often have a lot of tangible assets that can be valued. Some great examples, in this case, include those in the manufacturing and property businesses. You will have to start working out the company's NBV (Net Book Value) to start its asset valuation. In most cases, these assets will be recorded in the accounts of the business. Next, you simply need to make a few other adjustments like depreciation, etc., to determine the assets' actual value. 4. Discounted Cash Flow This is a complex way of determining the value of a company – it is all about making reliable assumptions about the future of a business. In most cases, this particular method is used by companies with more predictable and stable cash flows. For example, utility companies. As you can guess, this tip will help you understand the value of the business by estimating the worth of the future cash flow today. Adding the dividends forecast will help you figure out a valuation for the next decade or so. 5. The Rule Of The Thumb There are a handful of companies that deal with the buying and selling of businesses. Therefore, it only makes sense that these businesses utilize certain standard methods to determine the value of their companies. They are based on other things, apart from profit. When selling a business, it's important to identify the target market and understand their needs, such as business owners who will buy a business, in order to position the sale effectively and maximize the value for both the buyer and seller Let us take the example of retail companies. The value for these businesses is derived from other factors like the number of outlets, total number of customers, business turnovers, etc. 6. Non-Measurable Valuation As we have said in the beginning, the worth of a business is exactly what the other person is willing to pay. In this part, even intangible assets can be considered. If your company has a better relationship with your suppliers and/or customers, it will be more valuable. If the buyer does not have a stable team to grow your company, you can also add a strong management team for additional value. Conclusion With the help of these tips mentioned in this article, you should be able to approximately evaluate your company. To further help with your valuations, there are useful business valuation tools online. For an online business valuation tool, you will usually need to provide some basic data about your company, which will then be measured against the standardized benchmark to provide you with an accurate company valuation. Additionals: Master’s In Business Analytics: Is It Worth The Effort? Your Business Needs Marketing To Survive – Here’s Why Content Marketing Campaign Strategy For Small Business How Business Owners Can Protect Themselves if Their Business Fails

To Stop Spending So Much On Printing

7 Ways To Stop Spending So Much On Printing In Your Business

Running a paperless business is now almost possible due to the rise of technology. However, there are still some who are having a hard time sticking to the program. Either they are not comfortable with the change, or it’s just plainly out of habit. Nevertheless, some businesses are still looking for ways towards a paperless office and discourage the use of printing in order to reduce overall operational cost. So if you are looking for ways to stop spending so much on printing in your business, check out the strategies listed below.   1. Placed networked printers in the office Move to shared printers instead of using personal printers per employee. This eliminates overprinting, over usage of paper and not to mention the cost of maintenance for repairs. Reducing the number of printers can help limit outright expenses and minimize frivolous printing. Have someone to be in-charge of maintaining and restocking the cartridge and paper. A person assigned to regulate the usage of printers can help discipline the employees for overprinting.   2. Follow printer policies Printer policies are great for supporting sustainable and environmentally-friendly workplace by reducing printing costs. Use printer management controls to limit late-night printing or heavy use of color per page. Different printer policies could be applied to various levels of the company. You can state there your purpose, exclusions, and procedures to follow for every employee to see.   3. Adjust the default setting on all the printers To limit more waste in printing, change the default setting on printers. You can set the printer to double-sided printing from single-sided. Change to grayscale instead of colored. Utilize the draft mode and shrink-to-fit mode to save more on ink. Rutgers University used this system to reduce the use of paper, and it gave them wonderful results where they were able to save 55 million sheets of paper in the first three years of implementation.    4. Reduce margins and font sizes Change the margins to 0.75 to 0.25 inches instead of the standard 1 inch to 1.25 inch. This can greatly affect the reduction of paper usage. Another tip is by using smaller fonts that is readable to utilize more space. You don’t need to follow the standard rule we use way back in college for formal documents. If you want to save on paper, make use of the space as much as possible.    5. Change fonts style Aside from using narrower margins and font sizes when printing, you can also change the font style that uses less ink. Like for example changing the Arial font to Century Gothic since the style is thinner. You can save ink and also money just by following this simple tips. Writing concisely can take up less space on the page too.   6. Opt for more digitize paper notes The way to support paperless offices is by using technology. You should think before you print something. Is the document you are about to print that important, or this can be sent online. It does make it easier for people to share documents online through emails, instant messaging and cloud storage. So opt for more digitize notes and documents and support the paperless community.   7. Awareness is the key Let your employees be aware of the importance of reducing paper use. State the benefits and implement changes accordingly by posting informative signs and having staff meetings about it. Let your employees be disciplined in reusing and recycling papers as much as possible. By educating them about the importance of paper reduction in your office, implementation would not be hard to follow. If your business requires printing various marketing materials such as business cards, leaflets, brochures, and many other things, you should hire a professional printing company to get a cost advantage. You can also get the finest quality printing as both designing is done by professionals and printed using the latest technologies. Read More: Investing In Machinery For A More Productive Business 5 Reasons Why You Should Invest In APM Top 4 Reasons To Outsource White Label PPC For Your Business How To Choose Best VOIP For Small Business 5 Marketing Tips To Help Grow Your Business On Instagram