STUDENTS' CORNER - 127
Supply Chain Management.
Today, supply chain management has grown into a major business
concern, apple of the eye of the business, so to say. The sustained success of
the business depends on an efficient supply chain and of course, supply chain
demands close attention to all details of business, beginning from the
procurement of the raw materials for a product or even for service to the end
result of customer satisfaction passing through varying and various
intermediaries like warehousing, inbound and outbound logistics, so on. In other
words, supply chain needs managing closely so that the smooth functioning of
the business activities is not disrupted.
Disruption destroys business performance.
Experts have talked about strategies for supply chain management.
Before we go into the study of strategies for supply chain management,
let us spend some time on those factors that normally negatively impact the
supply chain management.
Supply chain as an integral part of a business is directly connected
with the market. And any change in the
market scenario will affect the supply chain. Supply depends on demand and if a
product loses its demand and some other product tends to replace it, the
company that was manufacturing that product has to change its marketing
technique and even business goals. The
great thing about a market is it is dynamic in nature which implies it inheres
in itself an irksome and dangerous element of unpredictability.
Unpredictability is the consequence of innumerable factors that happen
either in the attitude of the consumer or in the national and international
innovations that invade massively the market.
Consumers’ psychology is a huge subject which we cannot go into here
and now. Generally, reaching the consumer with the vital information of the
product a company promotes and sells is the necessary beginning of any market
activity and today, there information-explosion with digitalization and
Internet of things. With a click of the mouse, the consumer can command any
information he thinks he needs it to decide upon a purchase. And a supply chain
executive or personnel must be sensitive to the external world and its influence
on the marketing as a whole. If he fails to wake up to the changing environment
outside, he will fail to supply the things that the business wants it from him.
So, having seen the importance of supply chain for any successful
enterprise, we shall look into the strategies for supply chain management in
our next session.