Supply Chain Management (SCM) is an essential element to operational efficiency. SCM can be applied to customer satisfaction and company success, as well as within societal settings, including medical missions; disaster relief operations and other kinds of emergencies; cultural evolution; and it can help improve quality of life. Because of the vital role SCM plays within organizations, employers seek employees with an abundance of SCM skills and knowledge. Supply chain management is critical to business operations and success for the following reasons:
Basically, the world is one big supply chain. Supply chain management touches major issues, including the rapid growth of multinational corporations and strategic partnerships; global expansion and sourcing; fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy and bottom line. Because of these emerging trends, supply chain management is the most critical business discipline in the world today.
Supply chain management is necessary to the foundation and infrastructure within societies. SCM within a well-functioning society creates jobs, decreases pollution, decreases energy use and increases the standard of living. Two examples of the effect of SCM within societies include:
Clearly, the impact that SCM has on business is significant and exponential. Two of the main ways SCM affects business include:
Supply chain management helps streamline everything from day-to-day product flows to unexpected natural disasters. With the tools and techniques that SCM offers, you’ll have the ability to properly diagnose problems, work around disruptions and determine how to efficiently move products to those in a crisis situation.