The more that you read, the more things you will know. The more that you learn, you more places you will go.
Dr Seuss
The essential question is what do we know about supply chain management? and what are the best books so that we can know more about it? So, in this article we are going to look for the basics of supply chain management and some best books written about it. Supply chain management is a process of planning, implementing organization and controlling the operations of supply chain for the purpose of satisfying the customer need as efficiently as possible.
A positive or negative impact on supply chain that is sounds throughout the business. Thus, There are two core areas to impact customer happiness and rate of interest. Happy customer is equal to happy business and also,is equal to higher performance.
Read Also: 10 Digital Supply Chain Books That All Leaders Should Read
As said by a wise man that if a customer is happy with the way their return process was handled, they are 71% more likely to become a repeat customer.
A smooth return process means effective supply chain once that’s well connected and involves communication along the chain when supply chain meets or exceeds expectation of the customer, it is because of the efficiencies the entire business benefit through the high order rates, positive sentiment in customers mind and lower, cost to serve for the business.
Leader’s Tip
Encourage collaboration by establishing solid rapport with suppliers, partners, and stakeholders to boost supply chain cooperation and performance.
What is Supply Chain Management Process?
The supply chain management includes four main parts, demand management, supply management, S&OP and also, product portfolio management.
1. Demand management
Demand management consists of three parts, demand planning, merchandise planning as well as trade promotional planning.
1) Demand planning is the process of forecasting demand to make sure that products are reliably delivered. Further, effective demand planning can improved the accuracy of revenue forecast.
2) Merchandise planning is a systematic way to plan, buy as well as sell the merchandise to get the maximum rate of interest.
3) Trade promotion planning is a marketing tool to increase demand for products in retail stores based on special pricing, display fixtures, demonstration value-added bonuses, no obligation goods and also, other promotions.
2. Supply management
Supply management is made up of five things, supply planning, production planning, inventory planning, capacity planning and also, distribution planning.
- Supply planning determines best to fulfil their requirements created from the demand plan. Further, The objective is to balance supply and demand in a manner that achieves the financial and service objectives of the enterprise.
- Production planning addresses the production and manufacturing models within a company. Also, It consists of the resource allocation of employees, materials and their production capacity.
- Inventory planning. Determines the optimal quantity and timing of inventory to be aligned.
- Distribution planning and network planning checks the movement of goods from the supplier to manufacture to the point of sale.
- Capacity planning determines the production staff and equipment needed to meet the demand for products.
3. Sales and operation planning
Sales and Operation Planning is a monthly integrated business management process. Where the leaders focus on key supply chain drivers, including sales, marketing, demand management, production, inventory management and new products introduction. Often repeated. On monthly basis, sales and operation in apples effective supply chain management and focuses on resources of an organization on delivering what their customers need
4. Product portfolio management
Portfolio management is a process from creating a product idea. Do market introduction. A company must have any strategy for its product when it reaches the end of the profitable life or in case the product doesn’t sell well. Like new product, new product introduction and of planning. Commercializing in Ram, planning contribution margin analysis, portfolio managers brand platform planning.
Leader’s Tip
Embrace technology: Use tools like automation, analytics, and the Internet of Things to improve supply chain operations’ transparency, productivity, and adaptability.
Best books on supply chain management
- Best Supply Chain books. And I open a book showcases example of leading or once renowned companies about how they handle the crisis and how they found the solution.
- Logistic and supply chain management- by Martin Christopher. It is considered as one of the classics in the supply chain, management and logistics. It is a must-read book. It covers all the core and critical concepts.
- Total value optimal optimization-Transforming your global supply chain into competitive weapon- by Stephen J Bowen. The books goes beyond the concepts to deliver value for business, to grow and thrive in the current era. The author drives home the idea of value based supply chain as a competitive advantage in the demanding industry.
- Supply chain metrics that matter -by Laura MC Cree the book assesses the progress of over 100 companies from 2006 to 13. The author effectively applies frameworks over multiple contexts and examples to measure the supply chain efficiency.
- The goal -by Eli Umm Gold Rat, one of the few management books written as a gripping business novel, has lessons in process improvement and operational excellence. Convened through a story of a factory in small town.
So, this was all about supply chain management and books which will give one sight of latest advancements and techniques involved in it.
Check out this video-
FAQs
What is production planning process?
Production planning process the production and manufacturing models within a company. It consists of the resource allocation of employees, materials and their production capacity.
What is product portfolio management?
Portfolio management is a process from creating a product idea. Do market introduction. A company must have any strategy for its product when it reaches the end of the profitable life
Key Takeaways
- Take a holistic view of the supply chain from the point of origination all the way through to final delivery.
- Ongoing refinement: Adopt lean and agile methods, keep an eye on KPIs, and look for ways to improve.
- Expertise and information: read up on the latest supply chain literature to learn about the latest industry trends, market dynamics, and emerging technologies.