Technology and innovations are increasingly growing. The effect is evident in how the global supply chain management keeps evolving, from how efficient to how flexible the processes are.
Moreover, adaptability is key to coming up with the change. With the marketplace so driven, the need and importance of supply chain management cannot be ignored.
However, if you are getting started with supply chain management or want to establish a career along the same line, myths are surrounding this practice that you might come across. Please keep reading to discover 6 of them and how we debunk them.
Myth #1; Supply Chain Management is Entirely About Purchasing
One of the people’s outdated perspectives on supply chain management is that it is entirely associated with purchasing. Instead, professionals in modern supply chain management agree that the processes require flexibility. Also, a lot of strategic awareness is necessary. It would help if you also incorporated entrepreneurial thinking.
Remember, rather than entirely focusing on purchasing; you should take care of other things. Who are your customers? Do your products and services satisfy their needs? What is the relationship among the individuals in your system? Do you keep innovating and keeping up with technology? Are you aware of the potential risks that might befall your supply chain?
These are among the things you can keep in mind as you work towards building a sustainable relationship with your partners for the success of your supply chain.
Myth #2; The Lesser The Inventories, The Better
With many supply chain managers focusing on cost reduction, they try so hard to keep lesser inventories. Unfortunately, doing this could bring more financial risks. So, should you keep a high inventory instead? This can tie up your funds, making it difficult to use in other worthy sectors. However, the good thing about it is that it signifies potential growth.
Moreover, with a high inventory, you can plan, buy in bulk, and always ensure you fulfill your customers’ demands. Additionally, you can prevent delays in orders with a higher inventory and have more control over your supply chain.
Myth #3; A Supply Chan Should Always Reduce Costs
If you are dealing with supply chains, don’t put all your attention on reducing the costs. Instead, the goal should be to improve efficiency and reduce waste. Therefore, when you spend a little more to improve the efficiency of your supply chain, it makes a lot of sense. What’s more, it might pay off by increasing your sales.
If you are solely obsessed with cutting costs, it might backfire on you, and you might end up spending even more or have it impact your sales. Therefore, instead of focusing your attention on reducing costs as the ultimate goal, why not consider something long-term? You can do this by increasing the costs to minimize the problems, maximize opportunities and grow the markets? At times, all you need is to set your eyes on the bigger picture, and you are good to go.
To be good in the supply chain, the cost is one of your goals, but ensure you shift your attention largely on efficiency and how to increase sales.
Myth #4; Your Experience and Intuition Is All It Takes
Previously, the knowledge and experience you had in the supply chain management industry affected most decision-making processes. However, it is no longer about your gut instincts but proven data.
Thanks to technology, companies can capitalize on big data. Thus, professionals in the field can know the demands, tap on them, know a supplier’s delivery schedule and capacity and transaction data. Doing things in real-time helps supply chain professionals predict future trends so they can avoid any pitfalls.
Myth #5; Supply Chain Management is Boring
If you ever told someone you want to be a supply chain professional and you were told that is a boring field, you are not alone. Many, from the general public, business professionals to college students, have been fed are feeding the idea that the supply chain is boring into the minds of those with interests in the same.
However, is supply chain management really boring? Most of those who say so do not fully understand what it is or what it involves. Therefore, it is not a surprise that college students do not consider this path when thinking of their career options.
Nonetheless, some people might not understand that the supply chain requires one to make informed decisions, especially regarding the numerous trade-offs in it. You will have to think through many choices; whether to go for the cheapest product or consider how reliable it is and so on.
Moreover, there is beauty in the supply chain, one that makes it nowhere close to boring. Chances are, you will not have the same experience two days in a row, and each day might bring you something new or just unexpected.
Myth #6; Supply Chain Management Is Not a Viable Career Path
It is quite unfortunate that many college students and even professionals do not consider supply chain management as a prospective career. However, why is this so? As mentioned earlier, many do not have an idea of what it really is. Moreover, other people see it as a sector that is labor-intensive and requires low skills. This can be linked to a few universities offering majors in the supply chain.
However, is it worth taking a career path in supply chain management? First, this industry is continually growing annually. The only problem is the lack of adequate talent, making it difficult to get and retain professionals. This is a big blow to companies.
Moreover, the supply chain is versatile in matters positions, gives you room to advance your career, and has competitive salaries. Therefore, this is a career path worth trying.
For your business to be successful, the supply chain is vital. With the innovation and changes in technology, you want to ensure you keep up with the pace and always stay ahead of your competitors. However, whether you are a supply chain professional or a college student thinking of taking a career path along the supply chain, there are myths you might have come across. We have discussed six of these and the truth behind them. Therefore, it is good you research well before you believe any of them.
Originally posted 2021-11-30 17:35:12. Republished by Blog Post Promoter