Supply Chain Management involves monitoring the movement of products and materials from suppliers to clients. It’s a time-consuming process that requires careful preparation and coordination, and companies can’t function without an effective SCM system.
It’s an important business sector, but finding out where to begin can be difficult if you want to enter it as a career. Therefore, you must be mindful of certain things before deciding whether or not to pursue a career in this area.
Supply Chain Management – All You Want to Know:
What exactly is supply chain management (SCM)? The Supply Chain Management Process entails the active management of supply chain activities to maximize customer value and create a long-term competitive advantage. It symbolizes a deliberate endeavor for supply chain businesses to develop and manage their supply chains in exceptionally effective ways.
The supply chain management process covers all raw materials, work-in-process inventory, and finished products from source to end-user.
SCM requires an integrated approach as it involves coordinating various activities within these business groups such as:
- Product development
- Procurement
- Production planning & execution
Prerequisites of the Field:
There are a few prerequisites that one should work on to excel in SCM. The most important ones include:
Education:
A business degree, such as a Supply Chain Management Graduate Degree, is ideal for those looking to enter this field. However, there are many positions in SCM that do not require such a degree. Some numerous online resources and programs offer courses in SCM, which can be very beneficial if you’re considering advancing a career change in this field.
Planning:
Supply Chain Management requires a certain amount of foresight and planning, as one must always be on their toes for the unexpected. A good SCM manager should have experience in forecasting and strategic planning, but they should also know how to adapt quickly when faced with an unforeseen event.
For example, suppose a sudden change in climate affects the production of an item you need for your company. In that case, a reliable SCM manager should evaluate the situation and quickly find another source.
Experience:
Experience is the best teacher, and when it comes to SCM, experience goes a long way. You may pick up new skills on the job; however, having some prior knowledge of how things operate would be helpful if you want to move ahead fast.
A good SCM manager should have experience in forecasting and strategic planning, but they should also know how to adapt quickly when faced with an unforeseen event.
Skills that will take you Ahead:
Proficiency in Computers and Software: It’s good to know how to use Google Sheets, the preferred spreadsheet program among experts and businesses. Knowing how to edit documents digitally with Google Docs (or any other similar program) is also essential since technology has grown increasingly integrated into every part of SCM.
Analytical Skills: In the field of the supply chain, you will constantly be dealing with data. Therefore, you need to evaluate and analyze data to make informed decisions.
Knowledge of Operational Environment: Regardless of the industry you work in, it is vital to have a general understanding of the operational environment within which your company functions. This way, you will be able to develop better, more efficient supply chains that fit your company’s context.
Communication Skills: You must bond with customers and suppliers alike. Relationships are key in supply chain management, and the ability to communicate effectively is essential.
Of course, this isn’t a complete list of skills that you need to succeed in SCM, but it’s a good starting point.
Before starting your journey, you must get a feel for the industry and decide which area within SCM appeals to you most of what you can expect from the industry.
Every Day is a Challenge:
Supply chains are constantly changing, and you must be ready to face new difficulties every day. The goal is to improve the supply chain and make it more efficient continuously. It can be difficult, but it’s also advantageous to successfully overcome a challenge. So be prepared, you’ll never be bored at work!
Variety of Career Opportunities:
SCM is an umbrella term with a variety of career options within it. The three main areas are:
• Plan – this is the analytical part where you will work with forecasts, demand planning, and inventory management to master the supply chain. You will majorly be spending time with a computer, using spreadsheets or particular program packages that aid in analysis and reporting.
• Source – in this area, you’ll be managing vendor relationships, negotiating contracts, establishing quality control procedures, and much more. The key here is good communication skills that allow for effective negotiations and strong relationship-building abilities to maintain vendors’ trust over time.
• Make – This involves monitoring manufacturing processes from start to finish, including production schedules, quality assurance checks, and cost reduction initiatives, to name a few examples!
Negotiations are your Bread and Butter:
Among the most crucial aspects of supply chain management is effective negotiations. You’ll be working with suppliers, vendors, and other partners all the time, so having strong negotiation skills is vital. It’s not just about haggling over prices – you need to effectively communicate and build relationships to get what you need from each partner while maintaining their trust.
Without Networking, you aren’t Going Very Far:
SCM isn’t only about managing goods; it’s about working people. It isn’t just about what you know, but who you know. The relationships formed with your business partners will be a significant part of the success or failure of any SCM strategy that is executed. Building trust and showing others why they should work with you is essential to success in this field.
Put People Before Products:
It goes hand-in-hand with networking – building solid relationships takes time and effort. So you have to show your suppliers and vendors that their needs come first if you want them to continue working for/with you over the long term (and at competitive prices!). They aren’t going to help build up your career unless they see how it benefits them as well!
Don’t Forget About the Environment:
An essential part of SCM is considering the environmental impact of your business decisions. You must keep a check on how much energy your operations consume and what kind of waste products you’re creating. There are several fantastic resources out there to help you make eco-friendly choices – don’t be afraid to use them!
It All Pays Back!
It might appear more complicated than in other industries, but the rewards are well worth it! The hard work pays off. Take pride in knowing that the way businesses operate would come to a standstill without your work. So, take the lead!