What Do You Need to Know about Supply Chain Management (SCM)?

The first thing one needs to understand is that SCM doesn’t replace what we’ve learned about management over the last 50 years; it builds upon it. The analogy that a chain is only as strong as its weakest link holds here as well. Organizations must first be able to provide quality products or services in a timely, cost-effective manner if they want to tackle broader supply chain issues. Therefore, programs such as Total Quality Management, Just-in-Time manufacturing, concurrent product development, and the like are just as relevant today as they were in the past. In fact, it’s interesting to note that many of the firms that have emerged asSCM leaders had already established their reputations in other areas beforehand.

The second thing to understand about SCM is that it often requires significant changes in the firm’s organizational structure. SCM issues cut across functional areas and even business entities. Therefore, the responsibility and authority for implementing SCM must be placed at the highest levels of an organization. Firms that attempt to imbed SCM within a functional unit (such as purchasing, operations, or logistics) usually have limited success.

Third, SCM requires firms to put in place information systems and metrics that focus on performance across the entire supply chain. This is because individual units that seek to maximize their performance without regard to the broader impact on the supply chain can cause problems. For example, a manufacturing unit’s decision to minimize its inventory levels may reduce delivery performance to the end user. Likewise, a distributor’s decision to chase highly seasonal demand may “bullwhip” its upstream partners, causing significant cost overruns. Putting in place the information systems and metrics needed to make intelligent decisions in the face of such trade-offs presents a significant challenge to supply chain partners.

Finally, SCM adds another layer of complexity to a firm’s strategy development efforts. Years ago, firms could succeed by being particularly good in one functional area, such as marketing, finance, or operations. Then firms recognized that they had to have sufficient capabilities across multiple functional areas in order to survive. Nowadays, much competition occurs between multi-firm supply chains, not just between individual firms. In addition to their debates about functional- and business-level strategies, then, managers must now address how they will partner with other firms in order to compete.

Supply chain Management PPT presentation

Some useful PPT presentation of SUPPLY CHAIN MANAGEMENT.

Supply Chain Manager Interview Questions

Supply chain managers oversee the movement of goods from suppliers to end users. Many supply chains span the globe and involve multiple service providers. Because most industries operate in a just-in-time environment, managers must find efficient, cost-effective ways to move materials and avoid production shutdowns. Employers interviewing supply chain manager candidates will ask questions in key areas to determine the applicant's ability to succeed in this field.

Problem-Solving

Supply chain managers have to deal with unexpected problems on a daily basis. Interviewers need to determine if job candidates can solve issues such as supply chain disruptions and contract disputes with vendors. They may ask for an example of how you handled a problem like a supplier not meeting shipping deadlines or bad weather delaying a shipment. Be prepared to explain how you resolved types of situations such as a carrier rate hike or routing change. Your examples should have clear, step-by-step explanations. If you were not able to solve a problem, share what you learned from the experience.

Analytic Skills

To stay competitive, companies must move materials in a timely, low-cost manner. Supply chain managers have to constantly analyze their operations to find ways to save money and avoid delays. Employers usually ask applicants to describe situations where they made process improvements. Your answer should include the kind of reports or analysis tools you have used to identify weak areas and find solutions.

Communication

Supply chain managers communicate with parties throughout the supply chain and within their own organization. They may have to exchange information with others in different time zones and deal with language barriers. Interviewers ask questions about communication to see how job candidates handle communication barriers and make sure the recipient understood the message. Employers may inquire how you have handled difficult situations such as an angry customer or unhappy service provider, especially one who speaks another language.

Global Perspective

Successful supply chain managers have a global view and are comfortable with cultural diversity. The interview may include questions about your experience working in other countries and how you handled cultural differences. Some questions may have references to world events or new international trade regulations. 

What is Supply Chain Management?

What is Supply Chain Management?

The concept of Supply Chain Management is based on two core ideas.  The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations.  These organizations are referred to collectively as the supply chain.

The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.”  Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer.  The result was disjointed and often ineffective supply chains.

Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.  It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible.  Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

The organizations that make up the supply chain are “linked” together through physical flows and information flows.  Physical flows involve the transformation, movement, and storage of goods and materials.  They are the most visible piece of the supply chain. But just as important are information flows.  Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply chain.