Top 10 Benefits of Supply Chain Management: You Need to Know
Table of Contents
- jaro Education
- 25, December 2024
- 4:00 pm
Have you ever wondered what it takes from zero to the final product manufacturing that you are getting nowadays with one click? If you are into business, then here you should know the benefits of supply chain management planning because in this modern business, its customers are the core for upgrading the business. In this article, you will acknowledge how it is crucial, how you can master an MBA in logistics and supply chain management.
What is Supply Chain Management?
Uses of Supply chain management is the process that includes the production of any product from taking its raw material to giving the new shape according to the client’s needs, what they want, how they want, and when they want. Apart from this, uses of supply chain management requires a systematic process to accomplish the task of becoming an expert in the business industry because business is all about the customer’s feedback. Hence, to satisfy the customer and meet their expectations is all that a business desires.
The main goal is to modify efficiency, quality, productivity, and customer satisfaction. It can only be done if you are certified in an MBA in logistics and supply chain management.
Why Focus on Supply Chain Management in Business?
Have you wondered about your surroundings? Every minor and major thing you will see that there would be nothing without a supply chain. If we look into the static image, the SCM market size was valued at approximately $16.64 billion in 2023 and is projected to grow at a CAGR of 11.7% from 2024 to 2030. Moreover, the majority of companies are running based on supply chain management, and to be a master in SCM in this global economy is utmost you all need to be a business entrepreneur. The machinery and the system process have evolved, which has made the SCM more convenient for companies.
If you have ever looked around your surroundings, then you will be amazed that a very tiny thing or object is from SCM. Hence, the quality and productivity of the SCM could boost customer harmony with the company to reach the peak level of success with an MBA in logistics and supply chain management
Top 10 Benefits of Supply Chain Management You Should Know
On the off chance that you run a business, deal with operations, or are intrigued with how products and materials go through the process A to B, then you need to have a grasp of SCM. No longer is it merely a matter of transportation or warehouses; the modern-day supply chain is a strategic powerhouse able to increase profits, customer satisfaction, as well as streamlining every facet of a business.
We are going to dispel the top 10 Benefits of supply chain management that you simply must know. Be prepared to witness how intelligent SCM practices are transforming the game of companies.
1. Customer Relationship Management
A stable network of customers is one of the greatest Benefits of supply chain management. An example is the manufacturing industries, which rely a lot on the supply of raw materials within the right time. Therefore, when you are operating a business, it is important to establish good relations with suppliers. When you understand how to collaborate with suppliers properly and ensure transparency, your business will get an opportunity to enjoy preferred pricing, priority delivery, and a stable supply chain, which is the primary component of long-term success.
2. Lower costs
Supply chain management presents opportunities to engage cost-effective suppliers and retailers to maximise profits downstream. You can also get to know how to save more on the cost of procuring your raw materials due to the huge natural resources and low cost of labour in India, which will further reduce your cost of sourcing. This ultimately has a positive impact on your bottom line. The other benefits of supply chain management is that it maintains good relations with vendors by reducing time and cost on invoice processing.
3. Customer satisfaction
The Indian customers are mostly used to receiving quality products with super-fast delivery schedules thus they are less likely to be tempted to compete with each other. With that said, supply chain optimisation assists in ensuring that a company has the right product in its stocks and that it has fast deliveries, which in turn generates and sustains a large number of loyal customers.
4. Efficiency
A streamlined supply chain increases productivity across departments. Automated processes, better coordination among suppliers, and real-time tracking ensure that operations are running as efficiently as possible.
5. Continuous cash flow
Improved inventory and order management lead to faster turnover, helping maintain a healthy and steady cash flow. Businesses can reinvest in growth rather than having capital tied up in unsold goods.
6. Improved customer communication
Modern SCM tools enable businesses to provide real-time updates and accurate information to customers. This transparency builds trust and reduces the frustration of unclear shipping or product status.
7. Risk mitigation
Agile supply chain management equips the business with, ready-in-advance, information concerning impending supply chain interruptions. Everything, starting with monsoon seasons and ending with political changes, can seriously influence the business market. Therefore, conducting business in India deserves the application of technologies such as predictive analysis to evaluate the risk factors and proactively initiate measures to prevent and recoup losses caused by disruptions.
8. Shipping optimization
Smart SCM helps select the most cost-effective and timely shipping routes and methods. This not only saves money but also reduces delivery times, carbon emissions, and logistics headaches.
9. Improved quality control
With end-to-end visibility, companies can monitor the quality of goods throughout the supply chain. It’s easier to spot defects, ensure compliance, and maintain high standards before products reach the end customer.
10. Reduced overhead costs
By reducing redundancies, automating tasks, and improving workflow, SCM helps lower administrative and operational overheads. Less waste and more streamlined processes equal better use of resources.
A Comprehensive Guide to the Supply Chain Management Process
To achieve mastery in Benefits of supply chain management (SCM) and drive spectacular outcomes, it is essential to focus on SCM effectiveness. The benefits of supply chain management process is depicted below:
- Planning
The first and foremost step is to establish and gather the raw material according to the process of SCM to get the top-notch product for the customers, who are the primary source of SCM. Here, the core is planning, from where to take the raw material, its quantity, and quality both matter. If the planning is not set up appropriately, then the customer’s needs will not be fulfilled. So, to make your product up to the mark, you should do planning.
- Sourcing
It is also the second crucial path to deliver the goods to the customers. It includes receiving, delivering, inventory management, and authorizing the supplier. These aspects you have to consider while commencing benefits of supply chain management. Also monitoring the relationship with vendors and customers.
- Manufacturing
Manufacturing is accountable for monitoring, documenting, tracking, and controlling the process of manufacturing the goods. It makes the process easy and clean during the supervision of manufacturing, dealing with the right tools, and ensuring customer satisfaction.
For instance, companies can ask for 3D printing, then the process will go in accordance with that is further divided into sub-tasks like assembly, testing, inspection, or packaging.
- Delivery and Logistics
This step is about the keen observation of warehouse management and transportation management, which includes the customer services like payment method, stock list, delivering, and dispatching tasks. The returning and recycling policy comes under this, which is also a pivotal thing.
- Returning
This step is evolved to take the access of defective products and poor quality of goods for customers. So, they can return the product if it does not stand up to the qualities and standards. The benefits of supply chain management does not cease here; it will support and maintain the return and re-dispatching of the goods.
How can you Master Supply Chain Management?
Mastering supply chain management needs a lot of effort to become an expert or master in supply chain management exact knowledge, strategies, and continuous management. Looking in the depth of business through Supply chain management to become an expert in SCM.
Some strategies you have to be skilled in:
- Attain a Strong Educational Background
To get a strong educational foundation with an Online MBA in supply chain management course from Dr. D.Y. Patil University because building a business man or woman Dr. D.Y. Patil stands appropriate for you. The university will provide you with the whole curriculum to cater to your theoretical and practical knowledge regarding supply chain management. The university will provide you with the curriculum, industry-related learning, most crucial hands-on experience, global perspective, and capstone project.
- Key objectives would be covered during the course
To highlight the features of an MBA in logistics and supply chain management:
- Supply Chain Strategy & Planning
- Logistics and Distribution Management
- Procurement and Sourcing
- Inventory and Warehouse Management
- Global Supply Chain Management
- Technology in Supply Chain (ERP, AI, IoT)
- Sustainability in Supply Chain
- Operations Research & Analytics
- Risk Management in Supply Chain
- Duration of the MBA in Supply Chain Management
Master of Business Administration is a 2-year MBA Online program with a core in Logistics & Supply Chain Management, the minimum eligibility for which is graduation in any stream from a recognized university with minimum qualifying marks. The MBA program in logistics and supply chain management is spread over 4 semesters.
- Supply Chain Management Job Roles or Career?
MBA in Logistics and Supply Chain Management postgraduates are hired in capacities such as:
Job Role | Salary |
Logistics Manager | ₹8-12 Lakhs per annum |
Logistics Director | ₹15-30 Lakhs per annum (or higher for senior positions) |
Sales-Purchase Assistant Manager | ₹6-10 Lakhs per annum |
Material Manager | ₹8-15 Lakhs per annum |
Hotel Supply Chain Manager | ₹7 – 12 Lakhs per annum |
Catering Manager(Head of Supply Chain) | ₹20 – 40 Lakhs per annum (can be higher for large organizations) |
Assistant Manager (Supply Chain) | ₹6 – 10 Lakhs per annum |
Logistics Trainee | ₹3 – 5 Lakhs per annum (depending on the company) |
Source: Glassdoor
The popular recruitment areas for postgraduates include business sustainability and green operations, general management, operations management, project management, and small business management/entrepreneurship. These fields offer promising job roles in supply chain management, along with competitive salary packages.
Jaro Education provides expert guidance and counselling to help you navigate these opportunities effectively. Don’t miss your chance to register with Jaro Education and take a significant step toward achieving your career goals.
Conclusion
In summary, pursuing an Online MBA in Logistics and Supply Chain Management from Dr. D.Y. Patil University represents a strategic step toward achieving a prestigious position in today’s dynamic business landscape. As we look to the future, supply chain management stands poised to emerge as one of the most promising fields, enabling you to excel as a transformative leader adept at meeting and exceeding customer expectations through innovative tools and strategies. With access to comprehensive and cutting-edge insights in supply chain management, you will be well-equipped to drive success and achieve remarkable growth in your career. Seize this opportunity to position yourself as a leader in the evolving landscape of business.
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