Basic Components of Supply Chain Management

As an expert in the supply chain industry, I understand its pivotal role as the backbone of a country’s economy. A well-structured supply chain infrastructure minimizes manufacturing costs, enhances business operations, improves customer satisfaction, and accelerates consumption growth.    Reflecting on the past year, the Indian economy faces uncertainty due to the impact of the COVID-19 pandemic. In the second quarter of FY20, India experienced its slowest growth rate in six years, with only 4.5% year-over-year growth. This marks a significant downturn, with economic growth below 5% last seen in 2013.   Source The situation is further worsened by increasing financial burdens and declining consumer confidence. Since the supply chain sector has a direct or passive bearing on all other functioning sectors within the economy, even minor disruptions or failures in the supply chain can have a negative rippling effect throughout all parallels of the industry. In light of such uncertainties, supply chain stakeholders must identify the biggest challenges before them and create actionable strategies to overcome them. As India braces itself to get past this downward trajectory, it becomes even more important to strengthen the country’s supply chain infrastructure. For long, infrastructural constraints, high cost of raw materials, labor, and energy, poor risk management, incompetent professionals, and lack of adequate tech support has been some of the major challenges for the Indian supply chain industry. However, thanks to the growing influx of capital (both domestic and foreign), the government’s active efforts in improving the overall supply chain infrastructure, and increasing awareness among supply chain leaders of the importance of supply chain management, there’s much to look forward to in the coming years. Supply Chain Management: Why Is It Important In The Present Indian Scenario? In the present economic scenario and dynamic market, the survival of businesses not only depends on innovative and actionable business strategies but also largely on supply chain management. With evolving customer expectations, businesses must integrate IT with supply chain and logistics to ensure proper coordination between all tenets of the supply chain, right from sourcing and manufacturing to reaching the endpoint – the customer. Effective supply chain management is key to maintaining a balance between the demand and supply in the economy. So, What Exactly Is Supply Chain Management? Supply change management is a detailed and elaborate structure or system used by companies of all sizes across all sectors to handle and manage a host of processes involved between developing and delivering the final product to the consumer. Resource acquisition, manufacturing, inventory management, demand management, supply management, product portfolio management, and sales & operations planning, are some of the core components of supply chain management. Essentially, supply chain management focuses on aligning end-to-end business processes strategically to help businesses realize the market value while also giving them the upper hand over competitors. Apart from cost reduction, supply chain management aims to optimize operational productivity and efficiency within a company for speedy deliveries and improved customer satisfaction. 1. Reduces Operational Costs A well-designed supply chain management system allows retailers to quickly procure resources and manufacture products timely and release products to the market to avoid the unnecessary stockpiling of items in the inventory. When the system works like a well-oiled machine, it helps companies to avoid both time and monetary losses. Most important, it ensures that the product reaches the market and ultimately the customer without any delay. The idea is to meet company goals while maximizing customer satisfaction. 2. Improves Customer Support Services The end goal is to deliver the right product in the demanded quantity to the customer at the right time and correct location. For instance, if a customer purchased three home decor items from a company but was delivered only two of the originally ordered product and one wrong product was past the allotted delivery date, the customer is bound to be unhappy. In such a case, customers often reach out to the company/delivery partner for support services. Companies with a competent sales chain management system in place can resolve customer queries/requests/complaints timely to retain customers and win their loyalty. 3. Boosts Financial Performance Supply chain managers are valuable assets to companies because they use their expertise and knowledge to evaluate performance, optimize processes, reduce supply chain costs, manage inventory, shorten the product life cycle, and identify new opportunities to increase profits. They also ensure that all capital assets (plants, machinery & equipment, transportation, etc.) are optimally used to balance costs and output. Not just that, supply chain managers are key in establishing and maintaining good relationships between the parties involved, including vendors, manufacturers, stakeholders, distributors, etc. All of these actions combined help increase productivity and increase company ROI substantially. 4. Creates Job Opportunities The scope of supply chain management is quite broad. Since the supply chain encompasses multiple aspects such as manufacturing, warehousing, packaging, transportation & delivery, IT, logistics, etc., it creates numerous job positions across different sectors. Some of the most promising jobs in supply chain management are Production Planner, Logistics Resource Planner, Production Manager, Maintenance Supervisor/Manager, Quality Manager, Purchasing Manager, Warehouse Manager, Purchasing & Inventory Controller, Procurement Specialist, Logistics Administrator/Manager, Transport Administrator/Manager, and Reverse Logistics Manager. 5. Empowers People Working In The Supply Chain Structure The supply chain infrastructure consists of multiple tiers of different components, including a region’s physical infrastructure (roads, highways, railroad network, commerce corridors, etc.), transportation services, manufacturing, logistics, vendor-buyer relations, and so on. Naturally, there are people (skilled workers) involved at all levels of the supply chain network – their livelihoods depend largely on the effective functioning of the supply chain. When a country has a well-planned supply chain structure, it not only sustains the people involved in it’s functioning but also enables them to build the right skill set and domain knowledge. Thus, as the population it employs grows and upskills, the country’s supply chain structure further solidifies and expands. Why Pursue A Career In Supply Chain Management In India? Supply chain management is the new rage in the Indian industrial scenario. The increasing proliferation of global players in the Indian market, ever-expanding product variety, fast-paced technological disruption and digitization, and shortened product life cycles are the major driving factors behind the growing scope of supply chain management in India. Plus, the diverse selection of job roles in the supply chain domain makes it an even more appealing prospect for young aspirants. Here are five reasons why supply chain management is a lucrative career option for you: 1. It Promises High Job Satisfaction And Growth Opportunities Considering that the supply chain and logistics industry are fast-expanding, job opportunities in this industry are increasing each year. While conventional roles are getting a digital makeover, new roles demanding unique skills are emerging as well. Rest assured, you can get well-paying jobs that guarantee maximum satisfaction and optimal usage of your knowledge and skills in the supply chain sector. In India, Supply Chain Managers can earn as high as ₹859,249 LPA. Source 2. It Has Relatively Low Entry Barriers The best part about building a career in supply chain management is that the supply chain & logistics industry provides ample scope for earning handsome packages to skilled experts even without demanding advanced degrees. You can bag supply chain profiles with undergraduate degrees, professional certifications, and vocational training. A supply chain management certificate can make you eligible for roles like Procurement Analyst, Operations Research Analyst, Logistics Manager, Purchasing Manager, Supply Chain Manager, Senior Consultant,    Director of Operations, etc. 3. You Can Choose From A Variety Of Industries As we said, the supply chain is an integral part of almost every industry. Companies and organizations, irrespective of their size, are now investing in supply chain management to optimize their business operations, expand their market reach, boost revenues, and enhance the overall customer experience. Thus, with a supply chain management degree, you can enter any industry, including manufacturing, eCommerce, retail, automotive, oil & gas, healthcare, etc. 4. You Acquire A Wide Range Of Transferable Skills When you enter the supply chain industry, you learn and acquire many diverse skills that apply to different supply chain roles and even other industries. These skills include financial planning, research & forecasting, workflow optimization, general business management & administration, national & international business practices, and mechanical skills. Plus, you get the chance to explore different specializations in the supply chain such as management, information systems, warehousing, transportation, inventory management, sales and marketing, and customer service. 5. You Can Avail Jobs Locally Or Overseas Supply chain jobs spread through a vast canvas, both nationally and overseas. Thus, you can choose job profiles either locally or regionally within the country. And if you love travel-oriented jobs, many supply chain managerial roles require traveling both nationally and internationally from time to time. As more and more companies realize the true potential of a well-articulated supply chain management system, the demand for skilled and certified supply chain professionals will increase simultaneously. The best way to capitalize on this opportunity is to enroll in a certification program such as upGrad’s Global Master Certificate in Integrated Supply Chain Management. Offered in collaboration with Michigan State University (MSU), this short-term (6 months) program covers relevant topics to help learners: Successfully integrate all fundamental wings of the supply chain, including procurement, operations, and logistics management. Implement the ideal supply chain design and standard practices best-suited for a company. Streamline logistics operations by focusing on effective market distribution strategy development, execution, and management. Boost competitive advantage by integrating IT with logistics. The course is completely delivered online. Considering that MSU ranks #1 in supply chain management, students get the exclusive opportunity to learn from top mentors and instructors in the field. What’s more is that they enjoy many other perks like live learning & interaction sessions, 360-degree career assistance, interactive quizzes, case studies, interview preparation, resume feedback, and career counseling. On course completion, candidates can find employment opportunities in retail, manufacturing, healthcare, FMCG, transportation, communication, automotive, logistics, eCommerce, and IT. As for career growth, when equipped with the right skills and domain knowledge, it won’t take long for you climb up to managerial positions in the supply chain ladder. Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. The Future of Demand Planning in the Supply Chain As someone deeply entrenched in the field, I foresee significant changes in demand planning within supply chain management. The demand for supply chain expertise is rising, particularly in demand forecasting and demand-driven supply chain management.    Demand forecasting is pivotal in logistics and supply chain management, encompassing various forecasting methodologies. Understanding customer demand is crucial, as it drives supply chain decisions.    Supply chain professionals must grasp supply and demand dynamics to optimize demand planning strategies effectively. As the demand for supply chain management expertise grows, acquiring the necessary skills and knowledge becomes paramount for success in this field. Conclusion Upon completing a supply chain analytics course, candidates can access various employment opportunities across retail, manufacturing, healthcare, and IT industries. Career progression to managerial positions is achievable with the right skills and domain knowledge.    You should explore online courses offered by top universities worldwide to enhance your skills and advance your career in supply chain management. Whether you pursue a master’s degree, executive program, or advanced certificate, these programs can significantly accelerate your career trajectory.    Are you ready to embark on a rewarding journey in supply chain management? 

Most post-graduate students pursuing an MBA in Supply Chain Management are left confused when it comes to figuring out what topic they should base their supply chain management projects/theses. The motive of a thesis should be to study the inefficiencies in the supply chain infrastructure and propose solutions to eliminate them. In this article, we present a list of interesting supply chain management project ideas so you know how you can scope your projects and what concepts you can cover. So let’s start by taking a look at the current market scenario in supply chain management. What is Supply Chain Management and What is its Significance in the Current Economic Scenario?  Supply Chain Management (SCM) refers to the technique of handling a string of operations involved in the transportation of raw materials from the source to an enterprise to develop a desired product or service, which will eventually be delivered to its intended customer.  A properly functioning supply chain is crucial to the development and growth of any country. It gives countries a competitive edge over others in the marketplace. Supply chain management is aimed at cutting down costs, maximizing efficiency, and increasing productivity.  Disruptions in the supply chain in COVID-hit 2020 had far-reaching impacts on almost all sectors in India. It brought down the year-over-year rate in India to 4.5%.  As India recovers from this stumbling block, active efforts will be needed to repair the damage done to the supply chain infrastructure. Thankfully, India is already on the path to digitizing the supply chains. The current Indian scenario would benefit greatly from employing effective strategies to enhance the productivity of the supply chain and this depends on supply chain management to a great extent. To strike a fruitful balance between supply and demand, supply chain management must join hands with technology to improve supply chain processes and provide solutions to eliminate existing supply chain constraints. Our Learners also read: Communication skills course online free! What are the Major Challenges in Supply Chain Management Today? How Can you Overcome Them? Supply Chain Management is one of the more unpredictable professions out there and there is a diverse range of challenges the industry faces. However, the most significant areas that require attention are: Inadequacy in Managing Unprecedented Delays — Delays are but a part of supply chains since there are many variable factors in play. But there are counter-strategies that companies can implement to avoid frequent delays. Using warehouse management software can help keep track of the timelines of delivery, shortage in stocks, and scheduled arrivals of shipments. In this manner, a company can time arrivals and deliveries so any replenishing can be done before stocks run out. Failing to Keep up with the Fast-Changing Market — There’s no way around changing times. The best a company can do is encourage more flexibility in its operations and use logistics management software to adapt to the fast-changing world. Inadequate Steps Being taken to Manage Risks — Investing in logistics management can help stay on top of disruptions in management. With risks, preparation is key. Increased Costs — Financial qualms have resulted in increased rates of raw materials and goods. For this reason, the entire supply chain suffers. A company needs to have strict cost control measures in place to combat these issues. More efficiency should be promoted in warehouse and logistics management.  Lack of Solutions to Improve Customer Service Quality — Customizability is the need of the hour. To provide quality services to customers, businesses should join hands with new and emerging technologies.  Shortage of Skilled Personnel — Thanks to COVID, there is an increased requirement of individuals in supply chain management. This has also led to an increase in the market value of people working in this field. A lot of people now are keen to pursue a career in the supply chain industry. It is not without reason though. Supply chain management makes for a lucrative career option with regards to the advancement opportunities it offers and the wide range of industries that are looking to hire. This includes retail, transportation, food and beverages, healthcare, hospitality, and Information Technology, to name a few. Read: Essential management skills for a successful career 8 Interesting Supply Chain Management Projects Since there is a requirement of actionable strategies and innovative solutions for improving supply chain management in almost every industry, there is a growing demand for impressionable officials in SCM. Therefore, opting for a career in SCM will likely prove to be an exceptionally rewarding choice.  For those who have already entered the field, the onus is on them to positively impact worldwide trends by devising strategies and ideas through creative thinking and analysis, to strengthen the supply chain management infrastructure.  For that reason, we have listed some interesting Supply Chain Management project ideas you can consider that will help streamline significant problems in the industry today.  Read: Product manager career path and its scope 1. Demand Planning and Forecasting This project is aimed at strategizing a cost-effective solution to maintain sustainability in supply chains. With efficient demand planning using Demand Caster and forecasting the increases in price in the future, businesses can increase Purchase Price Variance (PPV) savings. For better management of the inventory, the project proposes that supply chain organizations integrate Inventory Optimization SaaS into their operations.  2. Developing Productive Supplier Relationships in a Competitive Market The project highlights the significance of developing and maintaining productive relationships with suppliers in a fast-changing, supply chain market. The study explores the critical factors that impact the quality of such relationships, and what steps a company can take to improve and foster mutually beneficial relationships with suppliers, thereby, enhancing the process of purchase management. 3. WMS Systems Consolidation The project proposes that more than one Warehouse Management System (WMS) system be consolidated to one system that is hosted centrally. This will enhance the adaptability of WMS systems to catch up with evolving trends in businesses. Since processes are now automated, it can reduce Total Cost of Ownership (TCO) by using RF devices to track product movement. It also gives managers enhanced visibility to effectively handle processes around a warehouse.  This automation can be made possible by using: HighJump Software WMS HighJump’s Web-based reporting system, and HighJump WebWise 4. Effective Negotiating Practices to Reduce Costs This project explores the importance of strong negotiation and persuasion skills to save a company a significant amount of money while purchasing raw materials. It proposes that every supply chain management official must undergo professional training to be able to effectively use negotiation as a tool to reduce expenditures for a company.  5. Rethinking the Workflow in Manufacturing The project proposes reorganizing the workflow of individual technicians in manufacturing to improve the productivity of a manufacturing company. It can be made possible by employing Demand Solutions to encourage planning and scheduling in advance. This will result in improved stocking, builder efficiency, and advanced visibility of orders to optimize internal operations accordingly. 6. Big Data and IoT in Supply Chain The project emphasizes the role of Big Data in optimizing supply chain operations and improving performance efficiency through effective prediction. Companies implementing Big Data and IoT in their business are not just able to proactively manage risks but also increase the overall revenue in sales.  As per Gartner’s research, “IoT and big data are knitted together. The IoT drives big data, providing more information, from several different sources in real-time, and allows us to gain completely new perspectives on the environment around us.” The project proposes that the significance of these two technologies in improving efficiency is undeniable and companies will increasingly adapt to these standards by restructuring their business processes.  7. Computerized Inventory Control The project highlights the importance and effective use of computers in inventory control to enhance business processes. It also discusses methodologies, analysis techniques, and testing methods to ensure the accuracy and effectiveness of computerization in a business environment.  Read: Boost your product manager career by joining the management program from IMT Ghaziabad. 8. Artificial Intelligence and Machine Learning in Supply chain The project proposes that companies must adapt Artificial Intelligence to improve decision-making activities in an organization. Since AI-based machines are designed to identify patterns, learn, and analyze information in a manner that mimics human intelligence, they prove to be effective decision-making tools. The study proposes that businesses must take a keen interest in recognizing areas where the application of AI and Machine Learning can prove productive to reap the widespread benefits of these technologies. Here are some other significant supply chain topics for your project:  Supply Chain Management: Ethical and Social Practices  The role of government initiatives in supply chain management transformation The importance of Agile Methodologies in supply chain management The impact of Demand Driven Material Requirements Planning (DDMRP) E-logistics in Supply Chain Operations The future scope of supply chain management in India Detailed Review of Supply Chain as a Service (SCAAS) SaaS, IaaS & PaaS: Cloud-specific supply chain management  Use of Robotics and Automation in supply chain management Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) Read: Product management career path and its scope 9. The IoT-Based Inventory Management: This project focuses on integrating sensors and connected devices across various companies’ supply chains. This implementation provides real-time, precise data on stock levels and warehouse conditions, facilitating efficient tracking of product movement from production to consumption. By leveraging this technology, companies can enhance stock accuracy and make proactive decisions regarding inventory management. This includes optimizing the reordering process, minimizing stockouts, and reducing excess inventory. Ultimately, implementing an IoT-based inventory management system leads to a streamlined and optimized supply chain, benefiting companies by improving operational efficiency and reducing costs.  10. Supply Chain Risk Management System: Creating a robust Supply Chain Risk Management (SCRM) System is a crucial project for professionals in the supply chain field. This project emphasizes the importance of advanced software solutions, providing students with hands-on experience. The software integrates real-time data, predictive analytics, and machine learning algorithms. These features empower companies to identify and assess risks effectively, enabling them to develop proactive solutions. A SCRM system addresses various disruptions, such as natural disasters, geopolitical events, and economic instabilities, ensuring the resilience of supply chains. By implementing this system, companies can mitigate potential disruptions and maintain continuity in their operations.  Conclusion The above-listed topics include some of the most trending subjects in the field of supply change management. They are aimed at identifying inefficiencies and improving supply chain practices to boost the growth of the Indian economy. We hope this gave you an idea of what your project can be based on.  The best way to capitalize on this opportunity is to enroll in a certification program such as upGrad’s Global Master Certificate in Integrated Supply Chain Management. The course is completely delivered online. Considering that MSU ranks #1 in supply chain management, students get the exclusive opportunity to learn from top mentors and instructors in the field. What’s more is that they enjoy many other perks like live learning & interaction sessions, 360-degree career assistance, interactive quizzes, case studies, interview preparation, resume feedback, and career counseling. Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

The disruptive nature of supply chains and increasing globalization of businesses have brought about rapid changes in the way Indian industries perceive supply chain networks. The pandemic has presented before the country a unique opportunity to redefine global supply chain operations by proactively leveraging its resources and workforce to enhance efficiency and responsiveness to disruptions. In his speech back in May 2020, the honourable PM Narendra Modi acknowledged the propitious position the pandemic had put the nation in. He reflected on his ‘Aatma Nirbhar’ vision for India and highlighted the key role the five guiding pillars — economic recovery, a technologically-driven infrastructure, governing system, demography and consumer demand — would play in realizing this vision. Economic recovery in India in the short term is heavily dependent on pharmaceuticals, agriculture and consumer products. In the long term, there are several factors that drive the recovery from disruptions in the supply chain.  What’s commendable is that India is on the right track to success and the efficacy of the implementation of this vision will determine the stable recovery of the Indian economy.  Future of Supply Chain Management in India Supply chain in India amidst the pandemic was wrought by risks and uncertainties which have the potential of reversing the recoveries the Indian economy has made in the short term. Since 14% of India’s GDP is spent on logistics, it is the need of the hour to explore supply chain management in India and devise strategies to improve it.  However, the COVID-19 pandemic was the catalyst businesses needed to drive innovations in the supply chain. Surprisingly, even companies that were under-equipped to respond to disruptive events and had limited resources rose up to the challenge by adopting analytical practices and technical standards to provide solutions.  But the challenge does not end here. It would require constant effort, efficacious upgrades and rigorous risk assessment and management to ensure supply chains stand the test of time. Companies worldwide must rethink their business models to create agile and resilient supply chains that help stabilise growth and ensure sustainability. This would mean relying heavily on digital technologies and agile methodologies to respond efficiently to the ever-evolving technological domain. The good news is India is blessed with the resources and intelligence that would take to succeed on the global platform. Furthermore, there are abundant opportunities for aspiring supply chain managers to upgrade their skills to align their expertise with the needs of the country. Acquiring a Master’s Degree in Supply Chain Management would equip them with the analytical approach that is imperative to making effective decisions for the future of the supply chain in India.  With the backing of cutting-edge technologies, an active interest in the diverse cultures around the world, and skilled workforce, India can adapt magnificently to the emerging challenges and recover stably in the post-pandemic world.  Key Trends in Supply Chain Management in 2021 As traditional supply chain strategies are being discarded to make way for cost-effective technological interventions in the supply chain, companies will have to re-examine their business models, diversify manufacturing processes and reconsider trade channels. Some of the largest components in the EU, the Americas, and Asia are realigning their business goals in a similar manner to better mitigate risks. Japan, for instance, has set aside USD 2.2 billion to help businesses move production out of China since disrupting events soured the relationship between the two trading partners. There are some progressive supply chain trends expected in the future: 1. Automation  Automation is poised to become the norm in the supply chain industry. Manual and repeatable tasks like data entry shall be replaced by automation software and will help businesses free up resources to allocate to more important tasks. This will reduce errors, speed up the process, and ensure seamless availability of information. Technological developments such as these help companies witness invaluable growth and gain distinction in the competitive marketplace.  2. Sales and Operations Execution (S&OP) By subscribing to agile management methods, companies will be able to effectively strategize and execute plans in the face of unpredictable changes in demand and inevitable disruptions. This will allow them to respond to unforeseen internal and external risks more efficiently.  3. Sustainability  Businesses will increasingly adopt sustainable development frameworks in their supply chain management to combat environmental challenges. More and more large scale companies around the world are discarding traditional practices in favour of eco-friendly and sustainable standards.  India has a gigantic role to play in bringing about this transformation. As the second-largest producer of food and energy demand that is expected to double in the next 20 years, India’s position is integral to the success of sustainable goals. And efforts are already underway to drive these changes in their global supply chains.  There is a rigorous assessment of risks pertaining to supply chain operations as the economy targets carbon neutrality and Indian companies are increasingly embracing sustainable norms in their business initiatives with France, Japan, the UK and the US. 4. Machine Learning and Artificial Intelligence  Even though digitization of supply chain operations had been in progress all along the past decade, the pandemic has accelerated this process. From this point on, machine learning and AI implementation will gain momentum to influence decision-making practices by providing actionable insights through data collaboration. Short Term Goals There was a steep decline in consumer demand due to the Covid-19 pandemic and government-enforced lockdowns. How quickly consumer demand rises will determine the future of the supply chain.  To complement the increase in consumer demand, there would have to be a proportional rise in demand for capital goods. Furthermore, this unfettered rise in demand is likely to negatively impact the already disrupted supply chain which companies with inconsistencies in cash flow aren’t likely to survive.  Long term goals  A survey conducted by KPMG and Management Development Institute has concluded that the Indian industry, in the long term, would benefit from: Realigning supply chain goals with business goals. Allowing better integration of supply chain processes. Fostering productive partnerships with vendors to improve inventory management. Employing technological solutions to streamline supply chain processes. What Is The Way Forward For India?  India needs to position itself at the centre of the global supply chain market. This would require cultivating productive trade relationships with global partners and facilitating efficient supply chains built on protectionist policies. The key approach to realising this vision would include capital-intensive measures like: Establishing supply chains at the sectoral, regional, and global levels. Promoting a culture of accountability and transparency. Subscribing to sustainable and environment-friendly methodologies. Presenting India as an investment destination for global initiatives. The long term goal would be to eliminate imminent risks in the supply chain by restructuring internal and external operations. In the short term, India needs to mend disrupted supply chains by driving consumer demand.  For Gaurav Taneja, the Government & Public Sector (GPS) Leader at Ernst & Young LLP, effective collaborations and innovative approaches are the way forward for India. In his words, “I feel that the adoption of technology will surely grow 200% or more in the Central government and the State governments. Demand for the adoption of technology is expected to come from user departments of the State governments, which are trying to sustain the continuity of public services in the time of the pandemic.” There are some immediate measures the Indian government is expected to take to safeguard its position in the global supply chain platform: Make promised incentives available to industries to resume operations. Establish Common Facility Centers (CFCs) to enforce technological standards in import and export. Diversify supply chain operations and promote the expansion of businesses.  Increase the operating hours in supply chain management. Provide support to businesses by making information readily available to all supply chain management services – vendors, distributors, buyers, logistics and consumers.  Renegotiate Free Trade Agreements with partners to include post-pandemic changes in policies of import-export in India. Invest in upskilling supply chain management professionals so that they can competently and meaningfully contribute to the growth of the country. Parting Thoughts Despite the devastating impact of the COVID-19 pandemic on businesses, India has positioned itself as a lucrative investment opportunity for global investors with its undeniable suitability in demographics, economic recovery rate, and improved business environment. India also has liberal FDI norms, a large consumer base, and an improving rank in Ease of Doing Business for the Indian government and industries to leverage this emergent opportunity. It is also necessary for India to adopt technological innovations to attract skilled employees with expertise in supply chain management which would benefit the country in the long run.  Here’s hoping the proposed government vision, innovative solutions and global collaborations will help the Indian economy make a full and stable recovery! Conclusion The best way to capitalize on this opportunity is to enroll in a certification program such as upGrad’s Global Master Certificate in Integrated Supply Chain Management. The course is completely delivered online. Considering that MSU ranks #1 in supply chain management, students get the exclusive opportunity to learn from top mentors and instructors in the field. What’s more is that they enjoy many other perks like live learning & interaction sessions, 360-degree career assistance, interactive quizzes, case studies, interview preparation, resume feedback, and career counselling. Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

As globalization increases the complexity of supply chain processes, businesses are increasingly subscribing to analytical standards to improve their decision-making capacities and enhance the efficiency of their supply chains. To be able to survive the competitive environment and ensure qualitative progress, a business needs to invest in responsible supply chain management to efficiently and sustainably respond to disruptions.  A smooth-functioning supply chain ensures speedy fulfilment of goods and services delivery when catering to ever-changing customer demands.  On the flip side, it is interesting to note that an effective and agile supply chain carries numerous benefits for an organization in the long term. In the words of Gaurav Taneja, an EY leader, “A resilient supply chain is crucial not only to ensure current growth of the country but also to respond to future disruptive events.” To that end, we will discuss the top 10 advantages of supply chain management that have a direct impact on the profitability and growth of a business.  Top 10 Advantages of Supply Chain Management  A supply chain begins with the procuring of goods and resources from a supplier and then moves on to the manufacturer, wholesaler, retailer, to finally end with the delivery of the manufactured product to the consumer.  Every aspect of the supply chain requires thorough monitoring and timely assessment to ensure productivity and maximized performance. This holds the power to either make or break a business. And supply chain management executives must ensure that these operations are carried out smoothly so businesses can focus on the quality of their services. Here’s listing the main advantages of supply chain management: 1. Higher Efficiency  When a company’s supply chain operations which include the resource procurement, logistics, and delivery are strategically planned and executed, businesses can predict demand more accurately as well as cater to them. This enhances the efficiency of a company to adjust to disruptions, ever-evolving markets and fluctuating industry trends. Supply chain leaders who invest in making real-time data available and have supply chain processes automated can avoid unnecessary delays in manufacturing and shipping. Since they have backup plans in case of resource procurement or inventory issues, they can better respond to challenges, which then helps improve customer experience. 2. Customer Retention and Experience  An effective supply chain management helps companies establish a strong reputation in the market. It increases a system’s effectiveness to respond to customer demands. This doesn’t just attract new consumers but also influences their loyalty to a brand. Businesses that prioritize customer service invest in effective supply chain management to ensure a seamless flow of goods and services.  3. Better Risk Assessment and Management Agile management in the supply chain allows companies to respond to disruptions efficiently. It is important to deploy predictive analysis tools for risk assessment. Responsible supply chain management also results in proactive action with respect to quality control. Businesses that do so are not just able to predict risks but also have corrective solutions in place to dodge or cover the losses they might incur from disruptions.  As per a study,  87% of companies believe that iterative risk assessment and management can help supply chains reduce inventory by 22%. With access to real-time, fact-based data, companies can predict demand more accurately and avoid what is known as the bullwhip effect in the supply chain.  4. Improved Relationships Supply chain management involves fostering profitable relationships with suppliers and distributors. Strengthening collaborations with vendors through effective communication and cooperation helps enhance productivity and cut down costs.  One of the main advantages of supply chain management is that businesses have software and performance metrics that allow them to make meaningful decisions when it comes to choosing their suppliers or vendors. Their cost structure, quality control measures, and timeliness determine how they would contribute to your supply chain. With analysed and integrated data on their performance, a business can develop and retain productive relationships with vendors and reap functionality from it. This also contributes to the long-term sustainability of a business.  5. Cost-Effectiveness Supply chain management includes inventory management, which when effectively planned and executed can help cut down costs. To maximize the outcome of internal inventory, supply chain management has inventory management software that allows managers to benefit from an on-demand or lean inventory model. Through this, managers can stock just enough supplies to meet demands and free up valuable warehouse space. This has helped companies pursue precision when it comes to demands which have allowed them to shut down underproductive and unnecessary warehouses and save big bucks while doing so. This is one of the biggest benefits of supply chain management. With insight into the frequency of orders, in-demand products and services, and a company’s capacity to fulfil orders, businesses are better positioned to control costs and appropriately allocate resources.  Furthermore, with effective accounting management and automated processes, businesses can ensure maximised cost-effectiveness. However, that’s not all there is to it. Automation also means increased accuracy, fewer errors and faster flow of information, which does not just enhance efficiency but also ensures improved cash flow. 6. Qualitative Improvements Responsible supply chain management directly impacts the quality of a company’s products and services which are produced keeping global CSR standards and guidelines in mind. This compliance contributes to sustainability and customer gratification. This is important because the cost to repair or replace an item due to quality issues is significantly high which can hurt companies on a budget. A smooth-functioning supply chain has documentations and quality compliance guidelines in place to streamline quality control when it comes to suppliers and partners. This usually includes ensuring that suppliers offer timely deliveries, conduct quality assessments, and provide complaint resolutions. Based on these metrics, businesses can partner with suppliers who adequately adhere to these standards.  7. Reduces Legal Liabilities   Effective supply chain management helps companies avoid negative publicity and legal liabilities that result from violations of global CSR standards.  When businesses have indicative data of where risk might lie, they can better mitigate the liabilities, be it through any protective strategy – insurance policies, upgraded resources, new technologies or improved work processes. 8. Reduces Delays An important advantage of supply chain management is that effective dialogue and coordination result in reduced inconsistencies in distribution, logistical errors and delays in production and shipment. Inefficient shipping methods do not just cause hold-ups in the supply chain but also result in increased costs. As per Logistics Management’s The State of Logistics Report, transportation costs had risen by 6% to 7% in just one year in 2017. To combat the increased costs, shipping optimization is necessary to ensure goods and services are shipped faster. This in turn helps improve customer satisfaction. 9. Uninterrupted Cash Flow  One of the main benefits of supply chain management is that it contributes to data-driven decision-making and profitable partnerships. There are also tools and technologies in place to conduct predictive analysis of potential risks to respond to changes and disruptions better.  As a result, we have a smooth-functioning supply chain where customers are satisfied and invoicing processes can be streamlined. This does not just reduce overhead costs but also ensures improved cash flow for a company to conduct daily operations. Effectiveness in supply chain management and uninterrupted cash flow maximizes a business’s productivity and drives growth. 10. Benefits of Technologies The role of digital technologies in enhancing the functionality of supply chain management is unmissable. From efficiency, performance and risk management to quality and customer experience, technology plays an important role in streamlining every aspect of the supply chain.  As businesses embrace cloud-based computing, supply chain management is benefiting from upgraded systems that allow managers to stay connected to operations even when they are on the move. With cutting-edge software and comprehensive tools in place, businesses can scale their services sustainably and in a cost-efficient manner. It also gives them a competitive edge in the market with the quality they can manage using automation tools that allow seamless integrations of new suppliers and work processes. There is a huge reduction in delays, errors and costs. And the result is improved customer experience and convenience.  Future of Supply Chain Management As the world quickens its pace, the onus is on management professionals in the supply chain scenario to upgrade their skill sets in a manner that would allow them to progressively contribute to an organization’s success. This also opens up doors for them to pursue attractive career advancement opportunities and grow professionally.  If you are looking to get an end-to-end understanding of supply chain management, we recommend pursuing a Master’s degree in Integrated Supply Chain Management. UpGrad offers a 6 months online course from Michigan State University that has been ranked #1 for Supply Chain/Logistics Graduate Degree Programs by U.S News & World Report for four years in a row (2018 – 2022).  Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.  

Every company has a dream and a vision. Their policies and decision-making practices that align with these business objectives help drive a company to success. And effective leadership and management play a key role in realizing these goals. Companies that invest in creating leaders out of their skilled workforce significantly reduce the cost of hiring and promote invaluable growth for the company.  What Makes an Effective Leader? In any company, effective leadership and management go hand-in-hand. Effective management includes strategizing, executing, and monitoring plans to achieve business targets. Effective leadership, on the other hand, guides the success of all business operations by uniting the entire workforce toward a common goal and helping a company register high-performance evaluations. A leader needs to work upon, improve and sometimes even redefine the values of the organization to make it a success. They are required to inspire teams and make proactive decisions that help a company grow.  According to Mathew Bidwell, a management professor at Wharton, “Few executives are skilled in shaking up a culture, especially in a way that really gets results.” So, what are the top characteristics of an effective leader? Let’s take a look at them below: 1. Knowledge and Expertise Candidates are promoted to leadership positions based on their domain knowledge and expertise. An in-depth understanding of the business, industry trends, and relevant prospects are crucial for leaders. It gives them the ability to foresee risks and plan for them accordingly. This goes a long way in structuring the finances of a company and dictating its success.  2. Consistency Consistency is another key characteristic in leaders, be it in interacting with employees, staying updated with the latest technologies and market trends or reengineering the policies for a company. This also brings about an unbiased and analytical approach towards business operations and leads to wider acceptance among teams.  3. Analytical and Agile Approach  The effectiveness of leadership is evident in the decision-making practices of an executive. Those who rely on data-driven, fact-based insights to make decisions can proactively enhance the efficiency and long-term sustainability of a company. This is applicable in every aspect of a business – recruitment, policy-making, launching new initiatives, finalizing the budget, and strategizing long-term plans for a company, to mention a few.  4. Acknowledgement and Encouragement Employees feel inclined to put in more efforts when their work is duly recognized. All recognitions need not be monetary – even a pat on the back can do wonders to boost the confidence. A good leader is the one who understands the efforts put in by his team and rewards them appropriately without any bias. He should also provide equal and fair opportunities to all.   It is also essential for leaders to guide and encourage their teams to perform better. By identifying areas of improvement in individuals and groups, a leader leads by example and helps the team grow in the right direction by supporting them wherever needed. Role of Effective Leadership and Management in Reducing Hiring Costs 1. Choosing the Right Resources Hiring the right candidate for a job takes precedence as the biggest asset for any company is its employees. And effective leadership and management have a significant role to play in staffing. They envisage the skill set expected and recruit candidates based on future demand which significantly reduces recruitment costs. 2. Optimization of Available Resources A leadership position demands that you plan and optimize the use of available resources. This includes upskilling the workforce under them, training and mentoring them so they are equipped to deliver optimum results using the available resources.   3. Improving ROI Every investment is associated with an ROI (Return on Investment) The investment could be in a tool, a resource or even a vendor. Sometimes, the investment could also mean bringing about a change in the strategies, structure or driving values of an organization. In this case, the initial costs are high, but with predictive analytics, individuals in leadership positions can accurately predict and maximize ROI and ensure long term benefits for a company.  4. Automation to Reduce Costs  Reducing hiring costs is directly proportional to incorporating the use of technology and automation practices. An effective leader would seize every available opportunity for automation. As manual and repeatable tasks are automated, it doesn’t just help reduce costs but also shrinks the project timeline, thus resulting in improved benefits for the company.  5. Use of Technology to Enhance Productivity The most effective way to improve productivity is to empower your employees with the right tools and technologies. When employees have all competent technologies at their disposal, they are better equipped to achieve their goals. This doesn’t just increase productivity but also enhances the capacity of an organization to scale its services.  Effective leadership and management understands this and strives hard to create the right balance of assets for the employees. 6. Implementing Marketing Strategies to Reduce Costs Marketing is a vital aspect of the success of any product. An effective leader can increase the profit margin of a company by employing the right marketing strategies. This does not necessarily mean running experience adverts. There are several other options available – increasing the social media presence, sponsored ads, networking, asking your happy customers for reviews, offering referral bonus, to mention a few. A leader can choose the optimal option to reduce marketing costs and still improve sales and profits. 7. Enhancing Customer Experience Listening to your customers and engaging them goes a long way in enhancing the quality of your services. Effective leadership and management involve including the Voice of Customer (VOC) as an essential criterion for improving their product offerings and enhancing user experience. This also helps to reduce any after-sales support requests and improves the efficiency and acceptance of the delivered product. 8. Time Management Timelines are of utmost significance when it comes to product deployment. A leader follows the best time management techniques to ensure the product gets delivered on time and if possible, even ahead of time. They assess the foreseeable risks and have mitigation plans ready well ahead. This helps them save precious time and money while staying vigilant in a competitive environment. What can Organizations do to Enhance the Effectiveness of Leadership and Management?  Organizations can reduce hiring costs of onboarding outside-hires by investing in the existing workforce to prepare them for leadership positions. Here are a few things companies must follow to ensure effective leadership and management in their organization:  1. Succession Planning Identify the right people for the leadership roles, early. Let them be part of the succession planning. Familiarise them with their roles and responsibilities so they can envision themselves as leaders and work towards that. 2. Assign Responsibilities Making great leaders involves assigning executives roles that help them grow leadership skills. “Don’t just ask them to get out and meet people,” says Bidwell. “Give them assignments that put them on a first-name basis and form working relationships with key people faster.” 3. Coaching, Mentoring and Training Invest in leaders by helping them find the right training opportunities to help them grow. Encourage them to take up training, and improve their skill set as leaders. There are tons of online courses available – both free and paid. While candidates stand to avail ample benefits from asynchronous methods of learning, synchronous learning practices will also put them in touch with mentors and coaches who can support and guide them in the right direction.  upGrad’s Global Professional Certificate in Effective Leadership & Management course, for instance, is a 3 months online program from Michigan State University which is designed to create industry leaders out of aspiring executives. You might want to look into that.  4. Constructive Feedback Provide them with regular feedback to help them understand their shortcomings and strengthen their areas of expertise. Constructive feedback goes a long way in shaping and improving employee potential and performance.  Conclusion Effective leadership and management are a heady mix every company wishes to achieve. It requires intricate planning and implementation. To create an atmosphere where the dreams and vision of the company will come true, every company must strive hard to mould their leaders to be the torch-bearers for the company values and principles. Only then can the company be a success. Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

How important is supply chain management in the current industry? This article will help you find the answer to this question as we’ll explore the relevance and importance of supply chain management in multiple industries, including automotive, pharma, manufacturing, and E-commerce. What is Supply Chain Management? To understand supply chain management’s relevance and importance in different sectors, we must first understand supply chain management. Supply chain management is the amalgamation of key business processes across the supply chain to create value for the stakeholders and customers. It focuses on making the supply chain more efficient and effective by observing, modifying, and improving. Every industry has a supply chain and, therefore, requires the expertise of SCM professionals. Supply chain management handles the movement and storage of raw materials, inventory, finished goods and end-to-end order fulfilment. Read more about the advantages of supply chain management. In other words, supply chain management handles the entire production flow of a good or service, from the beginning to the end. Manufacturing, farming, packaging, design, and transportation are vital aspects of supply chain management. Supply Chain Management in the Automotive Industry The implementation of supply chain management in the automotive sector is called the automotive supply chain. Here, the production starts from procuring the requirement parts, assembling the engine, designing the display, etc. Another essential section of supply chain management in the automotive sector is operator and equipment management. Every operator present in the assembly chain should know what component they work with and where it goes (vehicle). Thus, it is the production department’s responsibility to ensure that such necessary information is made available to every operator. Supply chain management becomes crucial in the automotive sector as a failure in even one section can result in a flawed product, causing heavy losses to the manufacturer. The availability of production parts is also a vital aspect of the automotive supply chain. The procurement services for these parts must meet customer satisfaction, and any variation in-vehicle components should come with the necessary preparations. Vehicle manufacturers have to ensure that they keep their spare parts available for customers with discontinued or obsolete vehicles. The final aspect of automotive supply chain management is storage and warehousing. Storages and warehouses in the automotive industry must meet the international standard, so the demand for proper supply chain management is considerably high in this sector. Supply Chain Management in Pharma Supply chain management in the pharma industry has evolved substantially in the last few years. The recent pandemic and the current vaccination drive are testing the pharma industry’s supply chains’ limits. However, apart from combating the pandemic, the pharma industry faces multiple unique challenges which can solve only through supply chain management. The COVID-19 pandemic put the pharma industry’s international supply chains to the test. As every nation races to vaccinate as many people as possible, the need for efficient and fast supply chains has risen considerably in the pharma industry. Countries with proper supply chains can produce more vaccines and transport them more effectively, allowing them to reach more people. Some additional challenges the pharma industry faces are: 1. Temperature Controlled Logistics Many pharmaceutical products require temperature-controlled transportation. That’s because a temperature change can affect their composition and shelf-life. This issue becomes more prominent in international pharma as the distance between the endpoints is considerably high. 2. Qualifications of the Suppliers The qualifications required for a pharmaceutical supplier matter a lot. An unqualified supplier can cause numerous problems to arise. They may supply the wrong product, or worse, provide a flawed product. The need for scrutiny increases considerably more in the pharma industry. 3. Time Sensitive At the lowest level, the speed of delivery matters a lot in the pharma industry. Pharma companies and their logistics partners should be able to deliver products as quickly as possible. They must also be preparing for unique instances and demands. For example, during the pandemic, sanitisers and masks’ need had risen substantially, causing shops to run out of stock. Supply Chain Management in FMCG FMCG stands for Fast Moving Consumer Goods. They include packaged food, beverages, over-the-counter medicines, toiletries, stationery, personal care products, cleaning products and less expensive consumer electronics such as headphones. These products have low prices, and they sell quickly, thus the name “Fast Moving”. These products’ lifespan is very short and has to be sold or replaced within a few months, weeks or even days. 1. High Volume, Low Margins The demand for Supply chain management in FMCG, India, is probably the highest because an FMCG company’s profits depend on the volume of goods they sell. If the production and delivery of products were too slow by industry standards, the consumers would prefer the competition’s products more, causing the company’s profits to decrease. The margins on such products are relatively small, but the net profit is high due to their high sales volume. 2. Competitiveness The FMCG sector is among the most competitive ones. Every product category has multiple companies competing for the same market. In such cases, effective SCM ensures that the company’s products reach the distributors and retailers promptly to get ahead of the competition. 3. Wide Distribution Supply chain management in FMCG must focus on wide distribution. As an FMCG company’s revenue depends on the volume of the products it sells, it becomes imperative to reach as many people as possible. That’s why they must have extensive and robust supply chains. Supply Chain Management in Manufacturing A considerable aspect of the manufacturing industry is the proper supply chain management. Here are the primary benefits a manufacturer would entail with good SCM: 1. Raw Materials Delay in delivering raw materials and inadequate inspection of arrived material can lead to multiple issues and disruptions in manufacturing industry operations. Not only would it waste their time, but it would also increase their financial losses. Supply chain management would help them in avoiding these issues and reducing their chances to a minimum. 2. Reduced Costs Effective SCM implementation would allow a manufacturer to mitigate production and distribution delays, making them more efficient and reducing operating costs. For example, with proper supply chain management, a manufacturer can determine the optimal transportations for their raw materials that take the least amount of time to deliver. 3. Better Customer Satisfaction When a manufacturer follows a strict and precise supply chain, meeting deadlines will become much easier for them accordingly. Although customer satisfaction is vital for any business but manufacturers, it becomes a more significant factor because they usually get B2B clients (Business to Business). A proper supply chain would allow their customers to place their orders more efficiently and customise their products when needed. Supply Chain Management in E-Commerce Another industry where a business’s success depends mostly on its supply chain management is E-commerce. An E-commerce enterprise focuses on product configuration, logistics, suitable infrastructure, secured payment gateways, and transport. One of the biggest reasons behind the vast success of Amazon in the E-commerce industry is its innovative supply chain management. Here are some critical sections of supply chain management covers in E-commerce: 1. Reverse Logistics E-commerce stores have to focus on maintaining an effective reverse logistics system. A reverse logistics system plans and executes goods’ movement from the consumer to the point of origin. Managing and handling returns properly are some of the most important aspects of any E-commerce business. The SCM structure, therefore, should be designed accordingly. 2. Inventory Management E-commerce stores don’t have to hold their inventory like a traditional business. Instead, they outsource this task to another enterprise, which allows them to reduce the risk and charges of maintaining their inventory. They must keep a close watch on their inventory to prevent any issues with customers and future orders. Conclusion As you can see, supply chain management is a vital aspect of many industries. From car manufacturers to online clothes retailers, nearly every enterprise requires reliable SCM implementations for its business. If you’re interested in pursuing a career in supply chain management, you should join our Global Master Certificate in Integrated Supply Chain Management. upGrad offers this course in partnership with Michigan State University. The course is completely delivered online. Considering that MSU ranks #1 in supply chain management, students get the exclusive opportunity to learn from top mentors and instructors in the field. What’s more is that they enjoy many other perks like live learning & interaction sessions, 360-degree career assistance, interactive quizzes, case studies, interview preparation, resume feedback, and career counselling. What other industry do you think relies heavily on supply chain management? Share your answer in the comment section below. Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.