Supply Chain Management Online Courses

Supply chain management is a critical business aspect across organisations of all types, from manufacturing, retail and transportation companies to service firms, third-party logistics and government agencies. Overall, SCM has seven core functional areas, and these are:

1. Demand planning - The process of forecasting market or customer demand using informed speculations, current test market data, statistical techniques, historical sales data and other quantitative methods. Demand planning assists companies in entering new markets, inventory management, production planning and evaluating future capacity concerns.

2. Purchasing - A company acquires goods and services to maintain the flow of input, maintain the standard and value of its products, strengthen its competitive position and reduce inventory holding costs. Purchasing in SCM implies getting the right quality in the correct quantity for the right price and at the right time.

3. Manufacturing - Manufacturing refers to producing goods for sale or use as raw materials involving tools, machines, equipment, labour, processing and other activities. While the term may include anything from manually-produced goods to high-tech production, manufacturing in the supply chain context typically refers to the large-scale industrial process of converting raw materials to finished goods.

4. Warehousing - In supply chain management, warehousing refers to the physical storage of inventory for distribution or sale. Almost every type of business uses warehousing facilities to temporarily store inventory before shipping them to individual customers or in bulk to other locations.

5. Inventory management - A critical element of the supply chain and SCM, the goal of inventory management is to have the right products at the right place and at the right time. Inventory management involves purchasing inventory, storing inventory until ready for shipment and pulling finished goods to fulfil orders.

6. Transportation - In a supply chain, transportation refers to the movement of goods from one location to another. It usually begins at the source of the supply chain with raw materials making their way to production/manufacturing plants, the subsequent movement of finished goods to warehouses and all the way to the customer’s doorstep.

7. Customer service - Another critical area where supply chain management is used is customer service. Enhancing supply chain operations with efficient customer service helps companies meet and even surpass customer expectations. Since a supply chain ends with a product reaching the customer, data from the customer service team is the key to addressing consumers' pain points and demands.

A supply chain management framework essentially refers to the dominating concepts and themes within SCM used for understanding and explaining the term. Here we will briefly discuss one of the most well-known supply chain management frameworks - the Supply Chain Operations Reference (SCOR) Model.

The SCOR model was developed by the globally-recognised non-profit organisation Supply Chain Council to assist SCM functions through practical guidelines for analysing supply chain management practices. The model is based on five main components - ‘Plan,’ ‘Source,’ ‘Make,’ ‘Deliver’, and ‘Return,’ representing the inter-related business processes in a typical product lifecycle. These five integrated processes must align with the firm’s organisational strategy, material and information flow. One of the primary applications of the SCOR model is to improve supply chain processes.

A supply chain management system typically aims to implement centralised control over the production, distribution and shipment of goods and services from the source to the final destination. SCM improves productivity and makes production processes more efficient, directly impacting the company’s bottom line.

Let’s understand SCM in the context of the following components:

Roles

Supply chain management professionals can hold various titles depending on their role in the supply chain. The job titles and responsibilities of these professionals may also differ with their qualifications, experience and the type of organisation where they work.

Some typical roles in the field of SCM are:

Commodity SpecialistSupply Chain Manager
Plant Manager
Operations Manager
Distribution Manager
Import/Export Specialist
Purchasing Manager
Project Manager
Sourcing Specialist

Supply chain strategies

A supply chain strategy is like a guideline for companies to get their products to consumers efficiently and in the minimum time possible. It ensures that the supply chain is optimised at every stage, from sourcing raw materials to manufacturing, logistics and delivery.

With the global supply chain market becoming increasingly complex, it is critical for any business to adopt proactive strategies to streamline its supply chain. In particular, manufacturing, retail, wholesale, distribution and construction industries must consider these four supply chain strategies to tackle demand surges and other uncertainties:

1. Diversify your network

Increasing supply chain disruptions means that you cannot risk relying on a single source for product acquisition. Instead, multisourcing or diversifying your manufacturing and supplier network can minimise the consequences of unexpected supply chain glitches.

2. Standardise supply chain operations

Consistency in your supply chain processes will make them more dependable and manageable, especially for firms with a globally scattered supplier and manufacturer network. Using standard or prototype platforms, plants and processes ensures compliance with regulations and facilitates seamless operations.

3. Take demand forecasting seriously

Investing in demand forecasting is paramount if you want to cut costs, reduce lead time and improve customer satisfaction. Accurate demand forecasting is not about gut feeling or intuition; it involves educated predictions of demand based on customer surveys, historical sales data analysis, social media monitoring and other methods.

4. Implement supply chain buffers

Placing buffers at strategic positions along the supply chain minimises the impact of unexpected disruptions and delays. Inventory, capacity buffer and time buffer are the three types of buffers you can employ along a supply chain:

Inventory - Keeping buffer or safety stock to protect counter demand surges or delays
Time buffer - Early arrival of resources or materials before demand
Capacity buffer - Use of spaces like production facilities and warehouses

Supply chain planning and optimisation

Dynamic markets and changing business requirements necessitate effective supply chain planning and optimisation to gain flexibility and competitive advantage. Customers today demand more access to product information, more customised products, increased flexibility and faster response time. Fulfilling these demands calls for increased focus on supply chain planning and optimisation.

Supply chain planning is the process of forecasting demand and planning materials, production, distribution, marketing and sales to meet that demand. Supply chain planning aims to achieve harmony between supply and demand while utilising every sales and revenue opportunity. Besides balancing supply and demand, the planning process allows for what-if scenario analysis and helps organisations meet demand in real-time.

The key elements of supply chain planning are:-

Demand planning - Anticipating demand by looking at market conditions, projected sales, historical data and other components.

Supply planning - Sourcing raw materials and other resources required for production.

Production planning - Resource allocation of materials, employees and production capacity with the primary goal of waste reduction and optimum inventory maintenance.

Sales and operation planning - Involves sales, marketing and other departments assessing and merging plans with operations and coordinating supply assets to meet long and short-term demands.

Supply chain optimisation includes the tools and processes for improving manufacturing and distribution supply chain efficiency and performance. These optimisation technologies leverage advanced analytics and statistical software that use historical demand data to forecast future inventory demand accurately. The goal is to balance supply and demand such that adequate raw materials are available for manufacturing and distribution to meet customer demands while remaining cost-efficient.

The predicted demand helps design supply chain manufacturing and distribution management strategy having the following phases:

Supply chain design optimisation - Focuses on demand planning, manufacturing plans, warehouse locations and product flow within the warehouse network.

Supply chain planning optimisation - Determines how product/service manufacturing and distribution will balance demand and supply while maximising profits and meeting the forecasted demand.

Supply chain execution optimisation - Deals with supply chain visibility, inventory management, transport management, order management, global trade management and real-time decision support.

Supply chain design and modelling

Supply chain design refers to a working model outlining a supply chain’s structure and network. The design helps approximate the time and expenses involved in bringing new products or services to market and allows organisations to identify potential risks and pitfalls in the supply chain. It also helps assess scenarios and optimise operations for improved costs, service and time to market.

Overall, the key objectives of supply chain design are:

Reducing inventory costs
Cutting down working capital and transportation costs
Identifying cost-saving opportunities
Increasing supply chain transparency

The goal of supply chain modelling is to realise business objectives such as on-time delivery, minimal supply cost, resilience to disruption and maximum customer satisfaction. There are six generic supply chain models with two broad categories; while one focuses on efficiency, the other is response-oriented. Any manufacturing business must adopt one of the following supply chain models:

The “continuous flow” supply chain model for stable and mature industries
The “efficient” supply chain model for industries characterised by high market competition
The “agile” supply chain model for companies that manufacture made-to-order goods with unpredictable demand
The “fast” supply chain model for industries manufacturing trendy products with a short lifecycle
The “flexible” supply chain model for companies that face seasonal demand peaks
The “custom-configured” supply chain model applies to products with multiple configurations, such as cars.

Execution and operation of supply chains

Supply chain execution and operations comprise the second part of the SCM process and come after supply chain planning.

Supply chain execution refers to the flow of tasks in the supply chain to drive the movement of goods from their source and all the way to last-mile delivery. Activities part of the supply chain are procurement, manufacturing, distribution, warehousing, fulfilment and transportation. However, numerous processes and tasks fall within the ambit of supply chain execution to ensure the seamless flow of goods within the supply chain.

On the other hand, supply chain management operations include the structures, processes and systems required to plan and execute the flow of goods and services from their source to the end consumer. These operations monitor and evaluate both internal operations and extended supply chain elements like customer relationship, supplier relationship, demand management, product development, manufacturing flow and order fulfilment.

Let’s look at some more aspects of supply chain execution and operations:

Strategic sourcing

In supply chain management, strategic sourcing refers to a procurement process involving a holistic, proactive and continuous evaluation of the sourcing activities of a business. It aims to achieve the lowest TCO (total cost of ownership) and minimal supply chain risk through data collection, market research, spend analysis, negotiations and contracting. In simple words, strategic soucing identifies an organisation’s spend profile and supplier base to ensure that suppliers’ capabilities align with the sourcing requirements of the organisation.

Purchasing and procurement

Purchasing and procurement are often used interchangeably in the supply chain context. However, they differ significantly. Purchasing refers to the steps connected with executing a transaction between an organisation and its supplier to buy goods and services. On the contrary, procurement involves identifying, selecting and obtaining goods and services from a vendor through a tendering process, competitive bidding or direct purchase. While procurement is more comprehensive, purchasing is a subset with steps like ordering, receiving and order fulfilment.

Category management

Category management is the process of bundling similar or related products into a single business unit or category and dealing with the unit's procurement, sales and other retail activities as a whole. Procuring goods on a category level instead of a brand or product level consolidates procurement and simplifies supplier relationships while saving time and money. Moreover, category management improves the customer experience and enables easier navigation. For example, categorising groceries into dairy products, meat, frozen food, etc.

Supplier relationship management

SRM or supplier relationship management deals with managing the work with third-party vendors who supply materials, goods or services to a manufacturer. SRM involves the evaluation of manufacturer-supplier relationships and determining strategies to improve supplier performance with respect to the manufacturing business. Each vendor's performance and continuity are evaluated to determine the ones most crucial to the business. These evaluations enable manufacturers to forge better working relationships with suppliers.
Product lifecycle management

Product lifecycle management (PLM) is the way an organisation handles goods as they move through the different stages of its product life, namely, development and introduction, growth, maturity and decline. Since PLM involves both the manufacturing and marketing aspects of the products, it helps firms make informed decisions in relation to pricing, promotion, market segmentation and expansion. PLM has several benefits for the organisation, including focused marketing efforts, shorter product development times and more streamlined manufacturing.

Supplier Scorecarding
A supplier or vendor scorecard is a document that enables a business to measure the effectiveness and performance of a supplier over time. To achieve this, the scorecard breaks down supplier performance into quantifiable categories and metrics like product quality, cost, delivery and customer service. Although the metrics differ from company to company, the primary objectives of supplier scorecarding remain the same - measuring vendor performance, fostering better supplier relationships, pushing for improvements, rewarding particular suppliers and deciding which suppliers to retain.

While logistics management is a small part of the supply chain management, the latter is more comprehensive, dealing with the planning, sourcing, production, delivery and returns handling. On the other hand, logistics focuses on getting the right products to the right place and at the right time.

In a way, SCM is an improvement over logistics. Yet, the confusion between logistics and supply chain management is not new. So, let’s break down the fundamental differences between the two.

Knowing how to optimise and improve supply chain management can be challenging for small and established businesses. As demand increases, you must amp up your supply chain management efforts to increase efficiency.

Let’s look at five best practices to improve supply chain management:

1. Improve supply chain visibility

Increasing your visibility over supply chain processes is the first step to improving SCM capabilities. The most practical way to go about this is to adopt inventory management strategies that enable real-time tracking of inventory levels at every stage of the supply chain.

2. Embrace automation

Automation plays a decisive role in maximising the efficiency of supply chain operations. From robotics and artificial intelligence to radio-frequency identification (RFID) technology, automation is one of the biggest technological advancements that can speed up supply chain operations and improve productivity.

3. Standardise supply chain processes

Effective supply chain management depends a great deal on the standardisation of processes. There are several ways to implement standardisation while increasing control and transparency, such as adopting warehouse management systems (WMS), ticketing systems, transportation management systems and enterprise resource planning (ERP).

4. Foster good working relationships with suppliers

Developing good relationships with your vendors or suppliers can help you plan better and avoid any delays or shortages in the supply chain. While it is crucial to identify dependable suppliers consistent in their performance and delivery, it is necessary to weed out suppliers that slow down your operations.

5. Invest in value chain management

For a manufacturer, value chain management (VCM) involves monitoring and managing various manufacturing components, such as procurement, production, quality control and distribution. Organised VCM is essential to maximise revenue, optimise business operations and strengthen supply chain management.

While discussing SCM, it is pertinent to understand the three flows in a supply chain - material (product), information, and financial flow.

Material (product) flow - It is the flow of the physical goods or products from the supplier through to the manufacturer, warehouse and distribution centre to the consumer. As such, material flow is typically unidirectional; that is, materials flow in one direction from the supplier to the consumer. However, material flow can reverse its direction if a customer returns a product.

Information flow - Contrary to material flow, information flow is bidirectional and refers to the flow of data and information from the supplier to the consumer and back to the supplier. It facilitates constant interaction between suppliers and customers and includes information like quotations, invoices, purchase orders, delivery status, customer feedback and the like.

Finance flow - As evident, financial flow is the movement of money from the customer to the supplier or the other way round (supplier to consumer) in case of debits. Typically, the money reaches the supplier when a customer receives a product, verifies it and makes a payment. All three flows must be effortlessly managed for an effective and efficient supply chain.

Information technology (IT) is leaving a mark everywhere, and the supply chain is no exception. The application of IT to the planning and control processes of supply chain activities has grown immensely and for good reasons. With information becoming a cornerstone of modern management, planning and control, IT is a key determinant of the growth and development of supply chain management.

Let’s look at the most significant roles information technology plays in SCM:

Collaboration and coordination - IT facilitates information flow, making improving and simplifying planning, coordination and collaboration among stakeholders. Demand forecasting and order tracking would be impossible without IT.

Digitalisation of supply chain activities - An increasing number of firms are embracing computerised supply chain activities for increased productivity and competitiveness. Computers support logistics extensively, from order entry and processing to warehousing, inventory control and payments.

Decision support - Data-driven decision-making is the key to business success. IT has simplified data collection and extraction of actionable insights from complicated data sets, communicating the findings through easily understandable charts and reports.

Supply chain visibility - Information improves the transparency and visibility of supply chain activities and allows for better monitoring and management. The flow of information through various supply chain stages helps supply chain managers make strategic, data-driven decisions.

Product improvement - Constantly improving and innovating products is essential in a market where consumer demand and expectations are ever-changing. In this case, information technology plays a decisive role in corroborating the kind and extent of product improvement a business needs.

Cost reduction - The role of information technology in supply chain management becomes more prominent because it drives optimum resource utilisation. Studying historical trends and leveraging the data to improve future performance permits optimum use of assets and helps in cost reduction.

The physical flow of materials in a supply chain involves three primary stages - supply, production and distribution. Together, these stages facilitate the downstream movement of goods from the supplier to the consumer.

1. Supply - Supply refers to the number of goods or raw materials that a manufacturer/producer acquired from a third-party vendor or supplier. In other words, the physical flow of materials (products) begins from the supplier.

2. Production - The production stage involves the transformation of the raw materials into finished goods for distribution to warehouses or sale to end consumers. It is the second stage in the physical flow of materials.

3. Distribution - Finally, supply chain distribution is about how a business gets its products to customers. A brand might sell its products directly to customers or use a third party for distribution purposes.

The supply chain typically comprises seven components: planning, sourcing, inventory, production, information, transportation and return.

The Five-Step Process of Supply Chain Management

Now that we have discussed the key supply chain processes, let’s briefly go thoroughly the five-step process of effective supply chain management:

Technology enables more connectivity, increases access to information, improves data analytics, and provides more streamlined storage. It has changed supply chains for the better and strengthened organisations with manifold benefits.

Let’s look at how technology is a blessing for logistics and supply chain management:

1. Better access to information

Supply chain technology facilitates data connectivity and eliminates information silos among various supply chain players. Improved access to information drives communication, promotes visibility and minimises inefficiencies.

2. Increased insight

Supply chain technology facilitates data-driven decision-making through improved insights. These decisions, directly and indirectly, impact the supply chain's overall performance and productivity.

3. Improved agility

Addressing problems and developing solutions are much faster when executives and supply chain managers have better insights into the supply chain processes and systems. It is a crucial capability in today’s fast-paced business environment.

4. Better collaboration

Technology helps organisations coordinate better between individuals and departments. A highly competitive and technology-enabled supply chain with network-wide collaboration is more agile and reactive towards omnichannel consumer demands.

5. Enhanced customer experience

Technology is crucial to meet changing customer demands, especially in the digital age when customers are more informed than ever. The agility, accuracy and visibility supply chain technology provides go on to enhance the customer experience.

Online supply chain management courses offer significant benefits over offline ones.

Let’s look at why earning a supply chain management certification online can be a better deal than attending physical programs:

Flexibility - An online course in supply chain management offers ample flexibility in terms of time and learning pace. Whether a student or a working professional pursuing an SCM certification, you can always find an online program that fits your schedule.

Convenience - Online supply chain management courses are more convenient than campus-based programs. You do not need to travel to attend classes and can easily access lectures and study materials from the comfort of your home, no matter where you are.

Cost-effective - An online supply chain management program is relatively cheaper than its offline counterpart. Moreover, you can save on transportation and accommodation expenses since you do not need to attend physical classes.

Global networking - Most importantly, online platforms offering supply chain management certification are an excellent opportunity to network with professionals, peers and industry experts from around the world. The exposure and experience you gain through these interactions are invaluable.

If you’re aspiring to build a career in supply chain management or related fields, an MBA in Logistics and Supply Chain Management is a great option.

The semester-wide syllabus of an MBA in Logistics and Supply Chain Management is given in the table below:

According to MarketsandMarkets Research, the global supply chain management market size is forecasted to grow from USD 28.9 billion in 2022 to USD 45.2 billion by 2027 at a CAGR of 9.4%. The remarkable growth in retail and e-commerce and the demand for increased visibility into supply chain processes have been cited as the key drivers of the market growth.

If we go by Google Trends, the search volume for the keyword “Supply Chain Management Course” in India has seen an overall upward trend in the past five years. Business survival largely depends on efficient supply chain management as much as it does on addressing infrastructural limitations like costly raw materials and labour, incompetent professionals, poor risk management and inadequate technical support. As the country’s economy recovers from the damages of the COVID-19 pandemic, it is more important than ever to strengthen the supply chain infrastructure.

With evolving customer expectations and a volatile market, effective SCM is the key to balancing demand and supply in the economy. Since SCM has a broad scope encompassing manufacturing, warehousing, IT, logistics, transportation and other aspects, it creates numerous job opportunities across many sectors. The job roles are not only diverse but also rewarding, with ample growth opportunities.

The growing scope of SCM in India is primarily due to the burgeoning global players in the Indian market, rapidly expanding product variety, ever-changing customer expectations and the digital revolution. It implies higher demand for supply chain management professionals across industries and a simultaneous rage for courses offering supply chain management certification.

The estimated average base salary of a Supply Chain Specialist in India is INR 607,765 per year.

The average pay of a Supply Chain Specialist in India primarily depends on the candidate’s experience, skill set and job location (city).

City-wise salary

Experience-wise salary

Skill-wise salary

The estimated average starting salary of a Supply Chain Specialist in India is INR 484,333

The estimated average base salary of a Supply Chain Specialist in the United States is USD 61,243

The average pay of a Supply Chain Specialist in the United States depends on factors like experience, skill set, city and the employer.

City-wise salary

Experience-wise salary

Skill-wise salary