Why Does Supply Chain Management Still Struggle for Recognition?
Sonu Dev Joshi
Operations & Supply Chain Strategist | Bridging the Gap Between Strategy and Execution | Business Advisor & YouTube Educator
Despite being the backbone of any successful business, supply chain management (SCM) often doesn’t receive the respect and recognition it deserves within organizations.
While the world has witnessed its undeniable importance, especially during global disruptions, many companies still fail to appreciate the strategic role of SCM. Why is that the case? And more importantly, how can we elevate its status within organizations?
The Critical Role of Supply Chain Management
Supply chains are the lifeline of any company, connecting suppliers, manufacturers, logistics partners, and customers in a seamless flow of goods, services, and information.
A strong SCM function ensures,
? Operational Efficiency - Reducing costs and optimizing processes.
? Risk Management - Navigating disruptions, supplier constraints, and geopolitical challenges.
? Customer Satisfaction - Ensuring on-time delivery and product availability.
? Strategic Advantage - Driving business growth, sustainability, and resilience.
Yet, despite these contributions, supply chain professionals often find themselves fighting for a seat at the strategic decision-making table.
Why Supply Chain Doesn't Get Its Due Respect
Several factors contribute to SCM being undervalued,
1?? Seen as a Support Function, Not a Strategic One
Many companies still view SCM as a cost center rather than a value driver. Unlike sales and marketing, which are seen as revenue generators, SCM operates in the background, until something goes wrong.
2?? Lack of Visibility
SCM success is often measured by what doesn’t happen e.g. no stockouts, no delays, no inefficiencies. This invisibility leads to underappreciation of the complexity involved in keeping operations smooth.
3?? Underestimation of Complexity
Senior leadership outside SCM may not fully grasp the intricate decision-making required, from forecasting demand to managing supplier risks and optimizing logistics networks. As a result, SCM is sometimes seen as merely an execution function.
4?? A Reactive Rather Than a Proactive Image
Supply chain is often associated with firefighting, solving crises rather than being a proactive force for innovation and competitive advantage.
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5?? Short-Term Business Focus
Organizations often prioritize short-term financial results over long-term supply chain resilience and strategic investment. This can limit SCM’s ability to drive innovation and change.
How to Elevate Supply Chain Management’s Status
To change the narrative around SCM, companies and supply chain leaders must take proactive steps
? 1. Educate Decision-Makers
Help senior leadership understand how SCM contributes to overall business strategy.
? 2. Break Down Silos
Encourage cross-functional collaboration where SCM has a direct role in decision-making.
? 3. Showcase Data-Driven Impact
Use KPIs and analytics to highlight SCM’s role in cost savings, risk mitigation, and customer experience.
? 4. Recognize and Celebrate SCM Successes
Senior leadership should publicly acknowledge supply chain contributions in corporate updates, town halls, and internal communications.
? 5. Strengthen Supply Chain’s Influence in Strategic Planning
Involve SCM professionals in long-term business planning to ensure supply chain considerations drive growth, sustainability, and risk mitigation.
The Road Ahead
The future of business belongs to organizations that recognize supply chain as a strategic asset, not just a cost function. As supply chain professionals, it is our responsibility to drive this transformation, by demonstrating value, influencing business strategy, and advocating for the function’s importance.
Do you agree?
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"Quality Manager at Hindustan Food Limited (formerly Reckitt)"
1 个月Insightful
Head: Projects , Sintex Advance Plastics Ltd by Welspun
1 个月Well articulated.
Head Of Sales @ Elixia | Transport & Logistics Technology | Product Sales | Gen AI for Logistics
1 个月Excellent read! I agree that the supply chain professionals have been the unsung heroes of India's growth story for a very long time. Its heartening to see some organizations in India leveraging technology and AI tools to building a resilient supply chain. I also see the shift in the mindset of organizations, across scale, realizing that availability of the product is as important, if not more, as building the right product. I am very optimistic about supply chain function's future in India given the organizations (both private and government) are focusing on building the infrastructure to support the entire supply chain.
Hands on leader in the manufacturing segment.
1 个月Well articulated. Every little helps.. In most products, based on actual costing of the supply chain component, importance is given / observed. Softwares and local produce consumed locally (as in an Indian scenario) seldom need SCM. This shall start getting more visibity as warehousing and logistics become a core business activity.