?? What is Supply Chain Management (SCM)? ????
Krishna Keshav Patel??
Supply Chain & Operations Manager | IIM Kashipur Alumnus | Operations & Procurement Expert | Quality Management | FSSC 22000 Lead Auditor
SCM is the method that allows organizations to manufacture,?move, and deliver goods quicker, cheaper, and better.
?? Breaking Down (Super simple! ):
1?? Making Stuff: Factories create stuff,?such as clothing, phones or food. ??
For example, 1000 pairs of shoes is produced daily in?one of Nike’s factories! ??
2?? Storing Stuff:?Warehouses keep these products safe and sound before they need to be used. ??
Something like: Amazon has 175+ large warehouses all around?the world to store products before delivery! ??
3?? These Things Get?Moved: Truck, plane or ship. ??????
For example, Apple relies on?air and sea for shipping iPhones from China to stores worldwide. ??
4?? Selling Stuff: Stores and websites sales these products?to customers. ?????
For example, always low prices with Walmart, so shoppers will be able to get millions of items?available. ??
5?? Delivering Stuff: The product?is in your hands — on time! ??
Give a number: FedEx?ships more than 15 million packages every single day! ??
That’s SCM—ensuring things flow seamlessly from factory to?YOU!
?? Why is SCM Important?
? Quicker Delivery =?Satisfied Customers ??
For example, the reason why?1-day delivery is part of the Amazon Prime package is because the supply chain is hyper-optimized! ??
?Cost Effective?For Companies ??
For example: Go?local with suppliers to lower shipping and manufacture faster! ???
? Ensures Things Are Running?Smoothly ??
For example, McDonald's never?runs out of fries, because they carefully track inventory! ??
? Helps Businesses Grow ??
Ex: The Combo of Supply Chain Supermacy helped Walmart?keep prices low, and increase internationally! ??
? How to Improve SCM? (Easy Steps)
?? A?Step 1: Use Smart Technology ??
AI & robots are used by companies to track shipments?and to expedite deliveries
Case-in-point: Amazon leverages?AI-powered robots on a large-scale! ??
?? Step 2: Streamline?and Budget ??
Businesses need to work with data?so that they do not overstock or understock.
For instance, Zara produces small quantities of garments, so they?never have unsold goods! ??
?? Step 3: Team Up with?Quality Suppliers ??
Choosing the right vendors is?the key to quality products & faster deliveries.
For example, Apple practices upstream contractual agreements by selectively choosing suppliers to guarantee that its iPhones?are of high quality. ??
?? Step 4: Track Everything! ??
There are?businesses that track shipments as we track our pizza orders! ??
For?example, DHL uses GPS tracking to update their customers about their shipment in real time. ??
?? Step 5: Think Green ??
We focus on eco cars & packaging?to reduce pollution.
For example, IKEA went to 100%?renewable energy in its supply chain. ??
?? Real-World Examples:
?? Amazon’s Supply Chain?Superpower
How can Amazon afford to do 1-day delivery? Because its?warehouses are near the cities. ??
?? Tesla’s Just-in-Time Model
Tesla does not keep a?parts inventory. Instead it receives precisely what is required just in?time, saving money! ???
?? Nike’s Intelligent Inventory?System
Nike has also tracked demand trends and made shoes in limited batches to minimize?waste. ??
?? The Only Thing?McDonald’s Can Be Sure Always Has Fries
And they have a global supply chain to ensure that?potatoes never run out! ??
?? Final Thoughts:
SCM is ubiquitous — from?your favorite sneakers to your fridge’s contents.
You get the idea, the supply chain makes customers?happy and business larger! ??
?? What’s?the best product you’ve monitored online? Let’s chat in the comments!
#SupplyChain #SCM #Logistics #BusinessGrowth #Efficiency #AI #Procurement #OperationsManagement