STUDENTS' CORNER - 138
We have been looking into the strategies that make supply chain
effective; so far, we have studied Five
strategies in this context and now, we shall move on to the next: Reliable
Reliability occupies the top slot in all business activities ranging
from acquisition of raw materials to the final distribution of finished
products to the valued customer. Break
in supply leads to cascading negative impact in all critical business operations
ultimately ending in failing to supply the finished product to your customer
who may switch to another company irked by disappointment.
Supply chain reliability has many
very significant benefits for the company. Apart from the fact of conferring
meaningful continuity to your business, it obtains the trust of the customers
in terms of consistent performance. This is a vital pillar of success of any
business enterprise. Other advantages are reduction in inventory and assuring
necessary inventory for future demand. Of course, it is a common practice now
that performing companies have some reasonable inventory buffers. After all,
business has in store surprises.
increasing competition in the market, the task of supply chain manages has
become too demanding; profitability, an ever burning issue with the
professionals, seems to grow tougher and tougher as days pass by. They have to
be alert not only to the mounting challenges but also, luckily, to the availability
of strategies to face out the challenges. In other words, relentless vigilance
must become everyday experience, integral to living itself. Of course the
stupendous advances the IT domain registers extend help considerably; it means
the professionals will do well to become IT savvy as well. The effective tools
are available for those who seek them in time.
And we have
spent some time on the strategies that ensure effectiveness to the supply chain
management. Implementing those
strategies with meticulous care ensures success. Failure or even delay in
implementing the strategies will take away the chance of success for the
company; and no business will be ready to face failure.