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The Role Of Supply Chain Management In Business Growth

Nowadays, many business owners are looking for ways to improve their company’s efficiency and sustainability. It is no secret that business growth and supply chain management (SCM) are intricately linked. 

However, what may not be as well-known is the sheer magnitude of SCM’s impact on organizational success.

SCM involves the coordination and integration of all departments within a company to ensure the smooth flow of materials and information from suppliers to consumers. 

Businesses can enjoy significant growth and increased profitability through careful planning, implementation, and execution of SCM strategies.

This piece will explore some of the key benefits of effective SCM practices. So, read on to discover how your business can benefit from implementing SCM strategies!

Who Is Responsible For Supply Chain Management?

A supply chain manager oversees the supply chain management process. The responsibilities of the supply chain manager include:

  • Planning and implementing SCM strategies
  • Coordinating with all departments within the company
  • Negotiating contracts with suppliers
  • Managing inventory levels
  • Overseeing transportation and logistics
  • Ensuring compliance with all relevant regulations

The supply chain manager is a critical member of the organization, responsible for ensuring the smooth flow of materials and information from suppliers to consumers. Firms prefer individuals with a BGSU MBA degree in SCM while hiring for this position.

Building An Agile and Adaptive Supply Chain:

Rapid planning and well-integrated execution will be essential for business success in an environment of increased complexity and change. To that end, businesses need to build supply chains that are both agile and adaptive. 

An agile supply chain can rapidly respond to changes in demand, while an adaptive supply chain can anticipate and proactively respond to changes in the marketplace. 

Businesses must consider investing in:

Flexible and Modular Manufacturing: To rapidly respond to changes in demand, businesses need to have manufacturing processes that are flexible and modular. They can quickly and easily adjust production to meet changing customer needs. 

Advanced Analytics: Using data to gain insights. Insights gained from data can help businesses make better decisions about where to source materials, how to manufacture products, and where to ship goods. 

Improved Transportation and logistics and shipping company: Transportation and logistics play a critical role in the supply chain. 

By using advanced transportation management systems, businesses can optimize their routes and schedules to make sure goods are delivered on time and at the lowest possible cost.

What Are The Best SCM Strategies For 2022?

Supply chains have never been more complicated, with socioeconomic and market changes emphasizing the need for businesses to react to an outside-in, demand-driven world.

Companies must consider a slew of new factors, such as trade tensions, political instability, and resource constraints when planning their supply chains for the future. 

Businesses must be proactive in their approach to Supply Chain Management to stay ahead of the curve. Here are the best strategies to keep in mind for the year early:

Demand-Driven Planning and Business Model:

Digital technologies are helping supply chain management specialists automate and improve their operations. 

They can now take better actions quicker based on real-time data. Artificial intelligence algorithms and internet of things networks have gotten even better, so SCM teams can make adjustments in real-time to meet actual demand. 

E-commerce Fulfillment:

The e-commerce boom has resulted in a corresponding increase in demand for faster and more efficient order fulfillment. 

Businesses can achieve this by investing in automation, robotics, and transportation management systems to optimize routes and schedules. A good example of this is Amazon’s use of robots in their warehouses to fulfill orders.

Omnichannel Distribution:

As consumers become more and more accustomed to buying goods online, they also expect to return them just as easily. 

It has resulted in a need for businesses to have a presence across multiple channels. It means having a physical store, an online store, and a mobile app. It also means shipping orders quickly and efficiently, regardless of where they originate.

Outsourcing to Low-Cost Countries:

No matter the scale of the business, supply chain management can be a complex and costly undertaking. Many companies are outsourcing their operations to low-cost countries to save on costs. It can help them reduce their overhead expenses and increase their margins.

Embed Sustainability: 

In recent years, there has been a growing focus on sustainability in the supply chain. Businesses are under pressure to reduce their carbon footprint and reliance on natural resources. They need to invest in renewable energy, green transportation, and sustainable packaging.

These are just a few supply chain management strategies that businesses should consider for the year ahead. Let’s move forward and explore the incredible benefits of successful SCM.

What Are The Benefits Of Good Supply Chain Management?

A well-established and efficient supply chain is critical for any business that wants to succeed. Here are a few compelling benefits of good supply chain management:

Reducing Costs:

Operating costs can be reduced significantly if a company has a good handle on its supply chain. Businesses can do this by streamlining processes, improving efficiencies, and reducing waste. 

It’s important to note that this directly impacts production costs and, ultimately, the bottom line.

Dell’s unique computer supply chain approach was based on making each computer to order and shipping it directly to the customer. It allowed Dell to avoid having large inventories of computers in warehouses and stores, saving Dell millions of dollars. 

It also meant that the computers they sold were always up-to-date with the latest technology.

Improving Customer Service:

When a company has a good supply chain, it can provide its customers with better service. There are fewer delays and disruptions, and orders can be fulfilled more quickly. More importantly, the make-it-or-break-it point for customers lies in the after-sales services.

For instance, if the air conditioner a customer bought from your store breaks down, the customer would expect a speedy and hassle-free repair. If you can provide this, the customer will likely return for more business.

Increasing Revenue:

That’s what every business is about, right? Whether by reducing costs or improving customer service, a good supply chain will inevitably increase revenue.

Businesses highly covet the supply chain management profession because it helps them move products more swiftly to consumers. 

For example, if a company can produce and deliver a product in 10 days rather than 70 days, it may charge the customer 60 days sooner.

What Does The Future Hold For Supply Chain Management?

The future of supply chain management is shrouded in potential but fraught with uncertainty. The biggest challenge that businesses will face is the ever-changing landscape of the global marketplace. 

The rise of new technologies, the increasing complexity of supply chains, and the volatility of commodities markets are just a few factors that will need to be managed.


It’s safe to say that the role of supply chain management in business growth will continue to be crucial in the years to come. 

Businesses that can adapt and change with the times will be the ones that succeed. The best supply chain companies include Intel, Apple, and Walmart.

Learn more about  Business and Small Business at Digital Business Grow.

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