How to effectively manage your supply chain.
Summary
In this insightful article, you will learn about:
- The critical elements involved in Supply Chain Management and its significance.
- The beneficiaries of an efficient supply chain system.
- Strategies on how to improve your supply chain management for better efficiency.
What is Supply Chain Management, What Role Does It Play, and Who Needs It?
Supply Chain Management (SCM) is the holistic control of all suppliers and services involved in the seamless functioning of a project. Encompassing four key sections – procurement, operations, distribution, and integration – SCM is a cornerstone in the robust management of project resources.
Integration
This stage is about forging processes that foster communication and collaboration across the entire supply chain, ensuring a seamless SCM system.
Operations
Here, the focus is on the continuous monitoring of daily activities to make strategic decisions that enhance overall efficiency.
Procurement
At this juncture, all goods and services required for the project from external sources are sourced and evaluated, a pivotal step in supply chain management systems.
Distribution
This final stage is crucial for the successful handover of the project to the client, encompassing all necessary processes.
For successful Supply Chain Management, it’s imperative that all these sections are meticulously managed. SCM is vital for all organisations collaborating with external entities, playing a significant role in maximising profits by reducing time and resource expenditure.
Why is Supply Chain Management Important?
Effective Supply Chain Management can significantly cut down time and resources, while poor SCM can lead to lower quality, costly delays, increased risk, and even legal repercussions. This highlights why organisations must diligently monitor and control their supply chains at each stage. Depending on the industry, certain levels of Supply Chain Management might be mandated by law, particularly in areas concerning health and safety, to mitigate risk.
Who Benefits from Supply Chain Management?
A well-oiled supply chain benefits everyone in the loop – from key stakeholders to the suppliers. By minimising time and resource usage across the board, an effective supply chain enhances profitability for all parties involved.
How do you Improve Supply Chain Management?
To elevate your Supply Chain Management, leveraging advanced tools is key. One such tool is Samson , initially designed to streamline the procurement phase of supply chain management. It has since evolved to encompass operations, incorporating project performance and supplier performance-based Key Performance Indicators (KPI), crucial for understanding how to improve supply chain management.
In conclusion, understanding and implementing robust Supply Chain Management systems is not just about efficiency; it's a strategic approach that ensures profitability, quality, and sustainability in any project. By focusing on the integration, operations, procurement, and distribution aspects of SCM, organisations can not only foresee but also effectively manage potential challenges, ensuring a seamless project lifecycle.
As our business has grown Liaison has become ever more useful in properly vetting and approving our supply chain in an efficient and cost effective manner; Liaison takes the drudgery out of information gathering in an efficient and user friendly fashion, it has been a great help and time saver to our organisation.
Another tool Liaison Systems can provide to help you manage your Supply Chain is View, a building information library that stores Building Occupiers/O&M manuals. View allows you to efficiently gather all information required from suppliers at the end of the project so that you can have an efficient handover.
Whenever I've asked for assistance, the guys immediately respond. What more could you ask for in a supplier? I used to be surrounded by paper O&M's, with Liaison's secure access and intelligence searches what's not to like.
How to effectively manage your supply chain
What is Supply Chain Management, what role does it play and who needs it?
Supply Chain Management is the control of all suppliers working on a project. There are 4 main sections of Supply Chain Management: procurement, operations, distribution, and integration.
Integration
Integration involves creating process that allow communication and collaboration throughout the supply chain.
Operations
This is the process of monitoring daily activities so that decisions can be made to maximises efficiency.
Procurement
At the procurement stage all good and services from external sources required for the project are sourced and evaluated.
Distribution
This is during the end of a project and involves all processes required for handover of the project to the customer.
For successful Supply Chain Management all these sections must be covered. Supply Chain Management is important for all organisations who work with other organisations. Making sure the supply chain is working effectively is key in generating profit as it can reduce both time and resources used.
Why is it Important?
While successful Supply Chain Management can reduce time and resources used, poor Supply Chain Management can result in lower quality, expensive delays, added risk, and a negative impact on reputation or even legal action. Due to this, all organisations should be effectively monitoring and controlling their supply chain at each stage. Dependent on the industry, a certain level of Supply Chain Management is required by law, such as Health and Safety to reduce risk.
Who Benefits from Supply Chain Management?
Everyone involved, from key stakeholders to suppliers, will benefit from an effective supply chain. This is because it will reduce time and resources used across the supply chain making it more profitable for everyone.
How do you Improve Supply Chain Management?
There are a variety of tools out there to help you effectively manage your supply chain. One of those tools is Samson which was built to simplify the procurement stage of supply chain management, however, has now extended to operations with project performance and supplier performance based KPIs.
As our business has grown Liaison has become ever more useful in properly vetting and approving our supply chain in an efficient and cost effective manner; Liaison takes the drudgery out of information gathering in an efficient and user friendly fashion, it has been a great help and time saver to our organisation.
Another tool Liaison Systems can provide to help you manage your Supply Chain is View, a building information library that stores Building Occupiers/O&M manuals. View allows you to efficiently gather all information required from suppliers at the end of the project so that you can have an efficient handover.
Whenever I've asked for assistance, the guys immediately respond. What more could you ask for in a supplier? I used to be surrounded by paper O&M's, with Liaison's secure access and intelligence searches what's not to like.
