Supply Chain Management Blog Posts

Supply chain management covers every aspect of a product’s lifecycle, right from obtaining its raw materials to delivering a full-fledged product made out of it to customers. A supply chain is made out of diverse, interconnected businesses offering assistance on various stages of the chain. Although these businesses vary in nature and primary functions, they all combine to form a uniform chain to develop products and deliver them to customers. Elements of supply chain management work on conceptual models to stabilise the entire process. However, a large part of it relies entirely on practicality to adhere to market demands and customer expectations. The fluctuating supply chain market frequently faces disruptions and varying challenges that can be overcome using the right set of supply chain strategies. Yet, what stays the same are the basics of supply chain management. The fundamental components of the supply chain account for its most significant features creating the foundation of the entire management for businesses to work and thrive with time.  One of the most critical factors of supply chain management is to devise strategies that promise customer satisfaction and a good profit margin. To achieve both of these objectives, it is pivotal to understand and leverage all the core components of supply chain management. Here are the five components of supply chain management. Planning The first process of supply chain management is planning. Creating a blueprint before initiating any process is imperative, so planning out supply chain management at every unit is necessary for a smooth project compilation. Planning requires leading figures to leverage analytical data, available resources, and customer expectations around the product to roll out a detailed plan for a smooth, successful production. Planning keeps account of cash flow and resources to maximise restricted assets for optimised operation. Moreover, it solves product, logistic, and distribution-based issues.  Sourcing Sourcing refers to identifying suppliers and vendors to source raw materials and services. It is the most crucial step of supply chain management as cost-effective practices can be applied here for overall efficiency economically. The step requires management to seek out reliable suppliers offering high-quality material compliant with the budget restrictions and delivery at the stipulated time. An inefficient supplier is more than likely to cause harm to the entire supply chain. Being connected to one another, each element makes it significant to seek reliable vendors for sourcing materials. A company must explore all options before seeking out the best in the industry. Production After sourcing the essentials of the product, the next crucial step is production. Production includes all the processes required to transform supplied raw materials into the final product. This part of the supply chain incorporates procedures such as assembling, testing, packaging and the final assembly to deliver it among distributors. Various factors may influence the production line, such as a delay in sourcing materials, quality of the materials, and customer feedback, which may help improve or make other changes in the production. The production looks over the key features of any product that includes its conformity with established industry standards and the amount of product being produced in the supply chain. Delivery Delivery of the product goes through several steps from manufacturing centres, including storage in warehouses, distribution among local retailers, or supply through diverse channels such as e-commerce portals to reach its recipient. Timely transportation is crucial at every stage of supply chain management, but the delivery of products at the right time demands extra vigilance with time restrictions. Companies leverage air, rail or road transportation mediums to have seamless delivery of products to local retailers. Another crucial aspect of delivery besides time is zero damage. Transportation can inflict significant damages on products if the containing material is not secured vigilantly. Hence, an added aspect of this supply chain component is to ensure product safety by all means.  Return This component deals with post-delivery customer services, a crucial part of customer service. Suppose customers receive a damaged or malfunctioning product. In that case, manufacturers must take care of it either by repairing, or most likely, replacing it with a new product. Customer satisfaction is the driving force for supply management chains to run. Imagine an unhappy customer leaving unsatisfactory comments for your brand. Not only do you lose this one customer, but hundreds of others who access those comments. The return or reverse logistics ensure good customer relations and a good brand reputation in the long run. A reliable supply chain management processes multiple such requests in advance without affecting the production line. Importance of Supply Chain Management Components Basic components of supply chain management draw a massive impact on the production following which, any business can boost their productivity and profitability. It divides the whole supply chain process into five parts to bring value out, each with stern vigilance and quality checks on each of them. A successful supply chain management system requires each element to work efficiently towards customer satisfaction. These five components prepare a blueprint for the processes to comply and create a stellar system while generating optimal profitability. Our Top Management Programs & Articles Product Management Certification Program from Duke CE Leadership and Management in New-Age Business from Wharton Online Top 4 Functions of Management Process Explained Leadership and Management in New-Age Business from Wharton PG Program in Management from IMT 5 Key Skills Required for Successful Management Career & How To Achieve Those Skills? 8 Crucial Business Management Skills Every Manager Should Have Why Should You Consider Product Management as a Career Option? Top 7 Career Options in Management To Choose [For Freshers & Experienced]   A career in Supply Chain Management In 2020, the projected global supply chain market was valued at 15.85 billion U.S. dollars, and by 2026, it is expected to reach a market value of 31 billion U.S. dollars. So imagine the market opportunity it will offer to supply chain management career seekers.  Being an interdisciplinary field, supply chain management offers immense opportunities for learners from diverse courses. As long as applicants are skilled with the required expertise, supply chain management has a place for everyone. Along with an undergraduate degree, masters in the relevant discipline gives you an edge over other candidates to bag attractive opportunities in the supply chain management field. Experience and added certifications also contribute to increased chances of getting hired. If you are looking for supply chain management certifications from leading educational institutions, then upGrad has your back! upGrad offers a Global Master Certificate in Integrated Supply Chain Management provided by the leading Michigan State University. The course is equipped with best-in-class content to equip learners with an industry-ready course structure. The program aims to educate learners with brilliant supply chain management practices to introduce cost-effective strategies delivering operational excellence through all the supply chain stages.  With a learner base of 40,000+ students across 85+ nations, upGrad extends educational services explicitly created to prepare learners for the industry. Along with an official certificate from the leading universities at course completion, the platform also extends features such as career guidance, 24/7 student support, industry network, interactive discussion, and international academic support to fuel your dreams with the proper guidance. Technology for Improved Supply Chain Management The evolution of the latest technologies can help with the smooth operation of the basic components of supply chain management. The key technologies revolutionizing the field of supply chain management are as follows: IoT IoT involves combining physical objects like software, electronics, and sensors with internet-powered data transfer and collection. It supports real-time communication, enabling the initiation of physical systems without human intervention. IoT helps with the digitization of supply chains, leading to fully-integrated ecosystems. These connected supply chains are completely transparent to the manufacturing, product development, distribution, and marketing departments.  Big Data and Advanced Analytics The Internet of Things has increased the amount of data that businesses have to evaluate every day. Big data and advanced analytics provide better insights into supply chain operations. Therefore, businesses are able to detect inefficiencies and make improvements.  Several techniques for data analytics have been automated into mechanical algorithms and processes to work on data for human consumption. It enables organizations to make informed decisions and risk management efforts in their supply chain operations.   Robotic Process Automation Robotic Process Automation can be incorporated into different components of supply chain management for faster and more accurate operations. Robots are better than manual laborers in terms of productivity and uptime. But robots won’t replace human workers and instead enable supply chain managers to improve inefficiencies across the supply chain with the help of automation.  Automation will become more popular as businesses focus on satisfying the requirements of omnichannel supply chains. Automating different aspects of supply chain management will lead to greater agility and flexibility. Some warehouse activities like sorting, counting, and transporting items can be easily automated with the help of robots.  Some large supply chain organizations are focused on leveraging self-driven cars to minimize labor expenses. It will also contribute to fuel economy and reduce the possibility of human harm on the road. All these efforts across the supply chain will contribute to greater ROIs for businesses.   Artificial Intelligence Artificial intelligence is the driving force behind automating different elements of supply chain management. AI, with the help of machine learning, makes businesses more proactive in responding to demand changes. For instance, supply chain managers use AI-based forecasting tools to plan different operations and detect cost-saving opportunities.  Artificial intelligence tools also support real-time reporting and various interactive data visualization techniques. Advanced algorithms based on machine learning and predictive analysis are used to improve planning and decision support systems, automate time-consuming warehousing operations, and identify buying patterns.  Blockchain  Blockchain is considerably improving how retailers and consumer-packaged goods manufacturers are operating their supply chains. Blockchain is solving the need for securing supply chain operations. Blockchain networks are powerful for improving supply chains that lack transparency and traceability.  They come with a decentralized and secure database to store all transactions across the supply chain. It enables real-time tracking and traceability of products with regular updates. Therefore, blockchain technology supports the transparent tracking of goods while reducing the risk of errors and fraudulent activities.  Conclusion The changing trends of the customer service market have drastically affected supply chain management. Yet, the essential components of the supply chain are indispensable. The five elements of supply chain management verify production quality at every stage, working towards efficiency, cost-effective practices and complete optimisation of participating resources. These are the essentials market leaders look up to curate winning supply chain strategies.  Learn Management Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

What is eCommerce Supply Chain Management? Supply Chain Management in eCommerce refers to managing and coordinating activities in online retail operations’ flow of products, information, and services. It encompasses sourcing, inventory management, order processing, warehousing, fulfillment, and logistics. In eCommerce, supply chain management begins with sourcing products or identifying manufacturers and suppliers. It then focuses on maintaining optimal inventory levels to meet customer demand while minimizing costs. Order processing involves verifying orders, payment, and preparing them for shipment. Warehousing and fulfillment involve storing products in strategically located facilities and efficiently picking, packing, and shipping them to customers. Logistics and transportation ensure the smooth movement of goods, selecting the right shipping methods and optimizing delivery routes. Efficient eCommerce supply chain management is crucial for meeting customer expectations of fast and accurate deliveries, reducing costs, and maximizing profitability. It requires effective coordination, integration of technology, data analysis, and strong relationships with suppliers and logistics partners. E-commerce businesses can enhance customer satisfaction, improve operational efficiency, and gain a competitive edge in the online marketplace by optimizing the supply chain. Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. What is the Role of eCommerce Supply Chain Management? The role of eCommerce Supply Chain Management is crucial for the success of an online retail business. Here are the key roles it plays: Ensure Stock Availability: Effective supply chain management ensures that the right amount of stock is available to meet customer demand. By accurately forecasting demand, monitoring inventory levels, and collaborating with suppliers, eCommerce businesses can avoid stockouts and ensure products are readily available for purchase. Maintain a Shipping Strategy: Supply chain management helps establish and maintain a well-defined shipping strategy. This includes selecting appropriate shipping methods and carriers and optimizing shipping costs. It involves determining shipping rates, packaging requirements, and tracking mechanisms to ensure timely and cost-effective delivery of orders. Set Delivery Targets: eCommerce supply chain management sets delivery targets and strives to meet them. By analyzing historical data, market trends, and customer expectations, businesses can set realistic delivery timeframes. Meeting or exceeding delivery targets enhances customer satisfaction and helps build trust and loyalty. Adapt to Market Trends: Supply chain management enables businesses to adapt to changing market trends and customer demands. By closely monitoring market dynamics, consumer preferences, and emerging trends, eCommerce companies can adjust their sourcing strategies, inventory levels, and fulfillment processes to stay competitive and meet evolving customer expectations. Maximize Order Fulfillment: Supply chain management aims to maximize order fulfillment efficiency. This involves streamlining warehouse operations, optimizing order picking and packing processes, and minimizing errors. By improving order fulfillment speed and accuracy, businesses can enhance customer satisfaction and drive repeat purchases. How Does eCommerce Supply Chain Management Work? eCommerce Supply Chain Management involves several interconnected processes that work together to ensure the smooth flow of products from suppliers to customers. Here’s an overview of how it works: Inventory Management: It starts with accurately managing and forecasting inventory levels. This involves monitoring stock levels, tracking sales data, and analyzing historical trends to determine the right quantity of products to stock. Inventory management systems help automate these processes, ensuring products are available to fulfill customer orders without excessive stockouts or overstocking. Warehousing and Distribution: Products are stored in strategically located warehouses or fulfillment centers. These facilities are designed to efficiently receive, store, and organize inventory. Warehouse management systems help track inventory, optimize storage space, and facilitate order fulfillment. When a customer places an order, the system directs warehouse personnel to pick up and pack the products for shipment. Processing Order Information: Once a customer places an order, the eCommerce supply chain management system processes the order information. This involves verifying payment details, checking product availability, and validating customer data. The order processing system may also handle functions like fraud detection, address verification, and order prioritization based on service level agreements (SLAs). Transportation of Orders: After order processing, the eCommerce supply chain management system arranges for the transportation of the orders. This can involve selecting appropriate carriers, determining shipping methods (such as ground, air, or express), and generating shipping labels. The system may also provide real-time tracking information to customers, allowing them to monitor the progress of their orders. Successfully Delivering Orders: The final step in eCommerce supply chain management is the successful delivery of orders to customers. This includes coordinating with carriers, managing logistics, and optimizing delivery routes. Timely and accurate delivery is crucial for customer satisfaction and retention. Returns management is also an integral part of this process, ensuring efficient handling of product returns and refunds. Throughout these processes, eCommerce supply chain management relies on technology systems, data analysis, and integration between various stakeholders, including suppliers, warehouses, carriers, and customers. The aim is to streamline operations, minimize costs, and provide a seamless shopping experience for customers. Top Supply Chain Management Tools Used in the eCommerce Industry In the eCommerce industry, several supply chain management tools and services are used to facilitate efficient operations and optimize the flow of goods. Here are some of the top tools commonly used: Supplier/Vendor Management Platforms: These platforms help eCommerce businesses manage their relationships with suppliers and vendors. They enable communication, collaboration, and coordination of activities such as product sourcing, procurement, and inventory management. Examples include Alibaba.com, SAP Ariba, and TradeGecko. Shipping Companies: eCommerce businesses rely on shipping companies to transport their products from warehouses or fulfillment centers to customers’ locations. Shipping companies provide shipping options, tracking services, and delivery management solutions. Prominent players in this space include UPS, FedEx, DHL, and USPS. Third-Party Logistics (3PL) Services Providers: 3PL providers offer a range of logistics and supply chain services to eCommerce businesses. They can handle warehousing, order fulfillment, inventory management, and shipping on behalf of the eCommerce company. Popular 3PL providers include Fulfillment by Amazon (FBA), ShipBob, Rakuten Super Logistics, and ShipStation. Shipping Aggregators: Shipping aggregators consolidate shipping services from multiple carriers into a single platform, simplifying the process of comparing rates, selecting the best carrier, and generating shipping labels. These tools streamline shipping operations and offer cost-saving opportunities. Examples include ShipStation, Shippo, Easyship, and ShipBob. Additionally, various software platforms and systems are used for SCM in eCommerce, including Enterprise Resource Planning (ERP) software, Warehouse Management Systems (WMS), and Transportation Management Systems (TMS). These tools help automate and integrate processes, manage inventory, optimize logistics, and provide real-time visibility into the supply chain. E-commerce Supply Chain Management Software  There are several eCommerce supply chain management software solutions available, including SAP S/4HANA, Oracle NetSuite, Microsoft Dynamics 365 Supply Chain Management, JDA (Blue Yonder), Fishbowl, ShipStation, and TradeGecko. These software platforms offer features for inventory management, order processing, demand planning, warehouse management, and transportation management. They help eCommerce businesses streamline operations, optimize inventory levels, improve order fulfillment, and enhance overall supply chain efficiency. The choice of software depends on factors such as the business’s specific needs, scalability requirements, integration capabilities, and budget constraints. Evaluating features, scalability, user-friendliness, and customer support is crucial when selecting the appropriate software solution. Explore our Popular Management Courses Leadership and Management in New-Age Business Post Graduate Certificate in Product Management Executive Post-Graduate Programme in Human Resource Management Professional Certificate Programme in HR Management and Analytics Executive Post-Graduate Programme in Healthcare Management Executive Management Programme in Strategic Innovation Digital Marketing and Business Analytics Certificate Programme in Finance for Non Finance Executives Certificate Programme in Operations Management and Analytics Global Master Certificate in Integrated Supply Chain Management upGrad's Job Linked Advanced General Management Program from IMT Ghaziabad Global Professional Certificate in Effective Leadership & Management Advanced General Management Program Strategic Human Resources Leadership Cornell Certificate Program Digital Transformation Cornell Certificate Program Executive Leadership Cornell Certificate Program Management Essentials Management Courses What are the Key Benefits of eCommerce Supply Chain Management? eCommerce Supply Chain Management offers several key benefits to businesses in the online retail industry. Here are some of the major advantages: Better Customer Experience: Timely order fulfillment, precise inventory availability, and dependable delivery are all made possible by effective supply chain management. As a result, there is a rise in consumer happiness, loyalty, and favorable brand perception. Greater Visibility: Supply chain management systems provide real-time visibility into inventory levels, order statuses, and shipment tracking. This visibility allows businesses to make informed decisions, address potential bottlenecks, and proactively manage customer expectations. Automated Shipping Functions: Supply chain management software automates shipping functions such as carrier selection, rate comparison, label generation, and tracking updates. Automation streamlines processes, reduces errors, and saves time, enabling businesses to handle larger order volumes efficiently. Improved Delivery Mechanisms: Effective supply chain management enables businesses to optimize their delivery mechanisms. This includes selecting the most cost-effective shipping methods, negotiating favorable rates with carriers, and implementing efficient logistics strategies to ensure on-time deliveries. Maintain Flexibility and Growth: eCommerce supply chain management allows businesses to adapt to changing market conditions, customer demands, and industry trends. It provides the flexibility to scale operations, adjust inventory levels, and expand into new markets while maintaining operational efficiency. Conclusion  The success of online retail businesses is heavily dependent on the eCommerce supply chain management process. Businesses may obtain several important advantages by controlling the flow of products, information, and services properly. These include improving delivery mechanisms to ensure on-time deliveries, providing a better customer experience through prompt order fulfillment and dependable delivery, gaining greater visibility into inventory and order statuses, automating shipping functions to save time and reduce errors, and maintaining flexibility and growth in a dynamic marketplace. Businesses may optimize their operations, improve customer happiness, lower costs, and gain a competitive advantage in the eCommerce market with the correct supply chain management strategies and technologies in place. Head to upGrad and enroll in the various courses and programs offered and increase your skill and expertise. The Advanced General Management Program from IMT Ghaziabad is one you should definitely check out.

Introduction  A supply chain is a group of people and businesses responsible for producing and getting a product to the consumer. The raw material producers are the first links in the chain, and the last is the van that delivers the completed item to the customer. The importance of supply chain management may be seen in the reduced costs and improved productivity that come from an optimized supply network. Companies work to enhance their supply chains to lower costs and maintain competitiveness. The Supply Chain Models Setting up and managing a global supply chain is a complicated process, and choosing the incorrect supply chain architecture can expose an organization to risks and interruptions, drive up costs, and even jeopardize its reputation. Thus, choosing the appropriate model for your company’s needs is a crucial responsibility.  Learn more about types of supply chain management before you incur a significant loss. But first, let’s go through some of the many supply chain models that are used around the world. Let’s look at it now. Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. 6 Major Types of Supply Chain Models Continuous Flow Model  A supply chain designed for continuous, predetermined delivery of commodities is known as a continuous model. This paradigm guarantees a constant flow of resources and goods. It can only exist in a setting with stable supply and demand, often one with developed supply chains for well-known brands and little volatility in the client demand profile.  The continuous flow paradigm is centered on productivity. It provides stability in settings with high traffic. The firms that consistently provide the same product with little design variation or adjustment are best suited for this traditional model. These types of SCM are excellent for manufacturing commodities. Low product prices indicate its high level of efficacy. Three key competencies should be used to assist supply chain integration. Electronic transactions, which are utilized to cut down on the number of transactional operations needed during the order cycle, as well as the sharing of data on sales and stocks to enhance demand management, are some of the early phases of this. Planning collaboratively with important clients aids in foreseeing demand trends at the most advanced stage. The appropriate supply chain models are response oriented when customer demand is highly unpredictable. The “agile,” “custom-configured,” and “flexible” models are among them. The Fast Chain Model  One of the newest names in the types of logistics in supply chain management is the fast chain model. It is appropriate for companies with product lines that have brief life cycles. Businesses that produce finished goods with a brief market lifetime most frequently employ a quick model, which makes it typical for the supply of products that are seen as contemporary. This strategy is appropriate when a company releases new products often, just as a trend is starting to lose its appeal. The competitive edge of the first adopter is highlighted by this concept. However, the marketing division and the designer are the real forces behind the fast-food company. In other words, you’ll be the first to market if you can start your trend. This concept is powered, in essence, by art.  A fashion designer, for instance, might have a particular line of designs for a season. Since the fashion line is typically based on current trends, the company must introduce it to the market to maximize profits. This model is typically regarded as the finest among the various types of supply chain management since supply chain efficiency can boost a company’s competitive edge. The Efficient Chain Model  The efficient chain model is ideal for companies operating in highly competitive markets where maintaining a competitive edge requires high levels of efficiency in delivery logistics. This approach places a high priority on efficient inventory management and getting the most out of production workers and equipment.  In highly competitive businesses where end-to-end effectiveness is the ultimate goal, the efficient chain model is appropriate. To adequately burden or sweat machinery assets, this approach primarily relies on production predictions. The cost of raw materials and commodities has a significant role in the efficient model. Capacity problems are a problem for efficient chains in the post-pandemic era. Labor, material shortages, and delays are the main causes of this. The highly competitive sectors are the reason why the efficient chain model was developed. The ultimate objective of this model is to maximize effectiveness. The company is supposed to develop accurate production predictions by the efficient chain model so that it can set aside the necessary equipment and raw materials. The major flaw in this approach is how easily the supply chain network can be affected by changes to the production or sales cycle. For instance, issues like labor shortages or a lack of raw materials could result in protracted delays and extra expenses for the organization as a result of the supply delay. The Agile Model  Businesses that deal with specialist goods, where products may need extra care in the supply chain, are well-suited for the agile model. Typically, this model is adjusted for the product it is being utilized for. The knowledge needed to move the items from point A to point B is where the agile approach is known, not so much for the level of automation or technologies involved. Agile supply chain companies can charge more for their services. The agile approach is only lucrative up until a certain volume threshold is reached, in contrast to the efficient chain model, which thrives on enormous quantities. Following this model after that could be pricey. For a supply chain to qualify as an agile model, it needs to have four characteristics: process alignment, virtual integration, a network base, and market sensitivity. The company must monitor changes in market demand in real-time to implement virtual integration. Sharing supply chain obligations across the organization is what process alignment is all about.  This is accomplished by maintaining a jointly managed inventory, utilizing collaborative product design, and coordinating the supply chain as a whole. Network-based implies that each participant in the supply chain contributes equally. With any changes in demand, the market responsiveness component rapidly adjusts the rate of manufacturing. Businesses that operate in markets with a lot of demand volatility will do well with this model. The Custom-configured Model The assembly and manufacturing phases require special setups for the custom-configured model. It combines agile and continuous flow methodologies and requires the created product to function end-to-end while also maybe requiring some additional customization. Small-batch manufacturing and prototype design are two such applications.  In comparison to more conventional models, the corporation must invest more in the custom-configured model. A custom-configured approach, which is essentially a hybrid of the agile as well as continuous flow models, is useful in situations when many product configurations are necessary. Anytime there are choices for customer customization, a custom-configured model is probably being used. Smaller batch sizes and speedier turnaround times are possible with this higher-touch variant. The custom-configuration concept essentially combines continuous flow and agile models. The Flexible Model  Businesses can satisfy strong demand peaks as well as protracted periods of low demand thanks to the flexible approach. Part segmentation, precise stocking algorithms, and flexible planning are the three requirements for a supply chain to qualify as a flexible model. This is made possible by introducing automation onto plant floors and diversifying suppliers. To achieve the best of all worlds, the flexible model. It can respond to peaks in volume demand. Businesses with flexible models, on the other hand, can adapt to and withstand periods of low or no demand. This design resembles a light switch. Toggle it on or off as necessary. The adaptable approach can swiftly adapt to a lean time with low demand and handle the demand that is high during peak season. A business needs the appropriate supply chain management system and the appropriate personnel with a solid knowledge base for operating a flexible model alongside high efficiency to run it effectively. These are the top six supply chain models for businesses, each of which has advantages and disadvantages. Businesses must choose a model for the supply chain that will satisfy their unique requirements and assist them in avoiding any unnecessary costs.  Explore our Popular Management Courses Leadership and Management in New-Age Business Post Graduate Certificate in Product Management Executive Post-Graduate Programme in Human Resource Management Professional Certificate Programme in HR Management and Analytics Executive Post-Graduate Programme in Healthcare Management Executive Management Programme in Strategic Innovation Digital Marketing and Business Analytics Certificate Programme in Finance for Non Finance Executives Certificate Programme in Operations Management and Analytics Global Master Certificate in Integrated Supply Chain Management upGrad's Job Linked Advanced General Management Program from IMT Ghaziabad Global Professional Certificate in Effective Leadership & Management Advanced General Management Program Strategic Human Resources Leadership Cornell Certificate Program Digital Transformation Cornell Certificate Program Executive Leadership Cornell Certificate Program Management Essentials Management Courses What Comes Next? Supply Chain Control Towers  As you can see, each type of SCM model has advantages and disadvantages. A company can fully master one supply chain model. But market forces may render those abilities obsolete. Of course, you alone can decide which model to use for your company and under what conditions. But one thing is undeniable: We must use the new instruments being introduced to the market. The supply chain control tower is one significant development in supply chain management. A supply chain control tower is a cloud-based solution using cutting-edge technologies to proactively manage supply chains. These technologies include machine learning, artificial intelligence (AI), and the Internet of Things (IoT). Including manufacturers, suppliers, or business partners, supply chain control towers provide end-to-end, real-time insight across an organization’s complete network. They let enterprises plan for infinite unknowable variables, control what they cannot see, and lessen disruptions as well as risks before they become problems. This visibility and immediate access to current information are crucial for supply chain agility and resilience in a world where past information can no longer reliably anticipate future and present demand. Conclusion  To manage the supply chain effectively, having the appropriate people, procedures, and technology in place is crucial. It lets a business become more efficient, and it can also help it become more resilient to disturbances and less vulnerable to dangers. Companies can use their supply chains as a competitive advantage by using the appropriate model.  Head to upGrad and enroll in the various courses and programs offered and increase your skill and expertise. The Advanced General Management Program from IMT Ghaziabad is one you should definitely check out.

Introduction Demand forecasting is the act of organizing and foreseeing the demand for goods and commodities to support businesses in remaining as profitable as feasible. Without accurate demand forecasting, businesses run the danger of carrying unnecessary and expensive excess or of missing out on opportunities because they didn’t account for the wants, preferences, and purchasing intentions of their customers.  Our guide can be useful if you’re new to demand forecasting and want to integrate it into your company. In this section, we will discuss demand forecasting and its definition, significance, and application to your ongoing supply chain planning and management plan. upGrad offers you a vast variety of courses to help you understand and make a career in the field of the supply chain. What is Demand Forecasting in the Supply Chain? Demand planning, or anticipating the demand for materials, is demand forecasting in supply chain management. This process makes sure you can deliver the right items in the right amounts to satisfy client demand without producing a surplus. A surplus can be produced as a result of a forecasting inaccuracy, which could be more efficient and affordable. To ensure prompt stock replenishment, improved capacity management, and optimum sales and revenue, additionally, it enhances management and decision-making while advancing future growth and expansion plans.  Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. How Can Demand Forecasting Benefit Your Business? Retail companies that depend on precise stock projections for their long-term survival and health might profit greatly from demand forecasting. Additionally, the advantages go beyond preserving high levels of customer service; they can spur improvements across several functions, boosting corporate confidence and aiding a company in realizing its aspirations for expansion. Here, we examine some of the advantages that adopting demand forecasting could provide your business.  Reduced uncertainty – When it comes to supply chain forecasting and management, uncertainty is usually a bad thing. Decision-making is hampered, there are delays, and stakeholder confidence is affected. By ensuring that supply-related tasks are sufficiently resourced and that managers are well-informed to make wise decisions that promote growth and advancement, demand forecasting can eliminate ambiguity.  Improved supply infrastructure – The health of your supply-chain infrastructure depends on your ability to predict demand peaks and troughs. By maximizing stock replenishment, capacity, and the efficient management of warehouse staff, demand forecasting contributes to improved supply chain forecasting. Increased revenue – Knowing when and in what quantities products are expected to sell can result in large revenue increases. The best possible product availability ensures that you never miss a sale, thanks to demand forecasting. Less need for safety and excess stock – Demand forecasting lessens the need for safety stock, allowing you to concentrate on your most lucrative goods while reducing inventory expenses. Better fulfillment results in longer-lasting customer advocacy – Demand forecasting allows you to make more of your products available more frequently, which can greatly benefit consumer advocacy. What Internal and External Factors Have the Greatest Impact on Demand? It’s important to take into account a wide range of elements that both directly and indirectly influence supply when predicting demand. These factors, which include both internal and external factors, collectively have a big impact on supply planning and needed stock at different points during the year. Let’s look more closely at the elements you need to take into account when forecasting demand in the supply chain. Internal Factors  Promotional sales times – Take into account how sales and markdowns could cause a surge in demand. Ongoing marketing activity: How might continuous marketing activity affect supply planning and cause a surge in demand in the upcoming weeks and months? Examples include SEO, paid media, display ads in local newspapers, and billboards. Price Changes – Are there any upcoming pricing changes for the products we sell? How might this impact demand both now and in the future? Advertising and displays within the store – How can promotional campaigns, exhibits, and POS promotions impact the demand for particular products if you are in charge of a physical store? Best before and expiration dates – Do you stock perishable goods? Planning promotional periods by expiration dates can help you reduce stock wastage in your supply chain planning. Take into account how expiry dates can cause demand to fluctuate. External Factors  Consumer trends and purchasing patterns – How might shifting consumer preferences and purchasing patterns impact demand? This is crucial when estimating long-term, future demand. Competitor behavior – What are your rivals doing to generate demand and boost sales? Maybe they recently started a promotion or broadened their selection of goods. Or perhaps a brand-new company has entered your market with intentions to upend the industry? By evaluating the current situation of your competitors, you can find supply shortages and launch fresh initiatives to boost sales and revenue. Calendar events – Throughout a 12-month trading cycle, a few occasions tend to trigger a spike in demand. When to expect these seasonal uplifts can be determined by historical sales data, allowing you to prepare ahead of time and increase your supply appropriately. Seasonal variations – Include this in your supply chain forecasting plan, as seasonal fluctuations can have a significant impact on demand for particular goods and services. Be sure to consider these broad aspects as part of your forecast because the season, weather, and quantity of daylight can all increase or decrease demand for particular products. Tips for Developing a Robust Demand Forecasting Strategy Be Clear on Goals and Objectives When demand forecasting is in line with your aims and objectives, it is most beneficial. A demand prediction, for instance, might help to emphasize how and when an increase in sales will start to have a real-world impact on growth if you’re aiming to promote business growth through greater revenue.  Accurately gather and record data. Consistent, thorough, and full data are necessary for accurate and proactive demand forecasting. You and your team must be able to rely on extensive data sets because many of your predictions regarding future demand will be based on historical sales data and client behavior.  Keep Qualitative Variables in Mind While taking into account historical sales data is one of the first steps you should take to enhance the accuracy of demand forecasting, you also need to take into account qualitative factors. Consider them as upcoming occurrences that will affect supply and demand but that you are in no actual position to predict. It’s difficult to account for qualitative elements, of course, but adding any marketing and sales insights will increase the accuracy and legitimacy of your forecasts. Factors influencing demand planning and Forecasting Forecasting seasonality and inventory Everything that affects a customer’s behavior throughout the year is considered seasonal. This might refer to unforeseen weather conditions or even something like the epidemic, which made people stay indoors and at home more often than they often did in the summer. In terms of demand forecasting, competition Businesses now operate in a competitive and complicated market in the 2020s. Customers now expect a variety of things, including shorter product lifecycles, quicker deliveries, and more individualized services.  Estimates of demand and product categories Even inside the same product category, demand projections can differ greatly from one product to another. Not noticing the change itself, but rather the reason for the change is the secret. Average order value, product purchase combinations, and lifetime customer value also differ significantly and occasionally abruptly. Why is Forecasting Demand Important in the Supply Chain? Since demand forecasting is the method used to develop both strategic and operational strategies, it is crucial for the supply chain. Additionally, demand forecasting supports crucial company processes, including budgeting, scheduling manufacturing, evaluating risks, and buying raw materials. Above all, forecast accuracy helps merchants avoid stock-outs and overstocking while also reducing costs, boosting operational effectiveness, and enhancing customer satisfaction. Explore our Popular Management Courses Leadership and Management in New-Age Business Post Graduate Certificate in Product Management Executive Post-Graduate Programme in Human Resource Management Professional Certificate Programme in HR Management and Analytics Executive Post-Graduate Programme in Healthcare Management Executive Management Programme in Strategic Innovation Digital Marketing and Business Analytics Certificate Programme in Finance for Non Finance Executives Certificate Programme in Operations Management and Analytics Global Master Certificate in Integrated Supply Chain Management upGrad's Job Linked Advanced General Management Program from IMT Ghaziabad Global Professional Certificate in Effective Leadership & Management Advanced General Management Program Strategic Human Resources Leadership Cornell Certificate Program Digital Transformation Cornell Certificate Program Executive Leadership Cornell Certificate Program Management Essentials Management Courses How Does Demand Forecasting Work? When there is historical data on certain products and a pre-established demand, the quantitative forecasting method—also known as passive demand forecasting—is applied. The utilization of mathematical formulas and data sets, such as financial reports, revenue numbers, sales, and website analytics, is necessary for passive demand forecasting. On the other hand, the qualitative approach, or active demand forecasting, depends on cutting-edge technologies (such as machine learning), adjustments in pricing and availability, product lifecycles, product upgrades, and—most importantly—the judgment and experience of people who are creating the forecast. Demand Forecasting Techniques Collective Opinion collects historical data on consumer demand by utilizing the expertise and experience of a company’s sales force.  Client survey methods offer important details about client needs, wants, and expectations. Although it can be challenging to foresee actual demand, this data is useful for establishing sales forecasts. The Barometric Method is a technique for anticipating active demand that makes use of economic indicators to gauge past, present, and future activity and forecast patterns.  How To Forecast Demand? All organizations can benefit from accurate demand forecasting by using demand forecasting software like SAP Integrated Business Planning, but e-commerce companies and physical stores can benefit most because they can support inventory management efforts for products and enhance customer satisfaction. There are a few tried-and-true tactics that can simplify the procedure.  Gather the Correct Data You must make sure that you have the appropriate type of data to make wise business decisions for your demand forecast to be successful. Focus on the statistics that provide you with the knowledge you need to make decisions, such as price patterns and the volume of visitors to your sales channels during a specific period. Adapt to the variables. The daily interactions that affect sales data are influenced by a variety of factors. You must take into account all potential factors, such as unanticipated store closings or natural disasters, for your demand projection to be accurate. Budget, buy, and allocate funds appropriately. The only thing left to do is use the data you’ve gathered to develop a plan for how, where, and when to distribute your resources and purchase efforts once your demand forecast is in place. Top Management Skills to Learn SL. No Top Management Skills to Learn 1 Consumer Behaviour Online Courses Financial Analysis Courses FinTech Courses Online 2 HR Analytics Courses Online Communication Courses Online Effective Communication Courses 3 Research Methodology Courses Mastering Sales Courses Business Communication Courses 4 Fundamentals of Journalism Courses Economics Masterclass Online Courses Conclusion  Spending, as well as activity in this area, are noticeably expanding as businesses leverage their supply chains to compete and take market share. It is abundantly obvious from technology and process improvements at forward-thinking businesses that supply chain excellence is increasingly seen as a component of overall business strategy and that enhancing customer value is everyone’s business, not just management. Choose Advanced Certificate in Supply Chain Management from IMT Ghaziabad and rapidly gain excellence in the field of supply chain management.

Introduction The world supply chain has been disturbed since the break out of covid-19 pandemic. We all have heard that due to disturbances in the world, supply chains, prices, and the supply of various essential commodities and services are affected. The world just came out of the pandemic, but some effects can still be seen in the supply chain. The supply chain industry in 2021 saw the Ever Given crisis, Which resulted in the blockage of the Suez Canal for about 6 days and a wave of panic passed through the Supply chain industry. Many of us don’t know the exact meaning of supply chain management or supply chain process. What is Supply Chain Management or Supply Chain Process? Supply chain management is defined as the process of designing, planning, organizing, and exercising control over the logistics and allied activities which aids in the correct flow of goods and services to achieve efficient and effective movements of required resources. It consists of the entire network of organizations, processes and people who care is the movement to make available goods at the right place at the right time to achieve the desired goal. Supply chain management (SCM) is collecting, organizing, executing, and achieving the supply of raw material to the production place to end consumer smoothly without any or least hassle and in the most cost-efficient manner.  When you order goods online For example say a jacket, the Supply chain starts from then and there of your order till the delivery of the jacket at your doorstep. This involves confirming orders from the seller merchant, taking delivery from the seller to the distribution center, and transferring that to your nearest distribution center and from that to your doorstep. There are plenty of activities other than this which run parallel like packaging, tracking of the package, and condition and safety of the goods. Supply chain management optimizes the flow of material, information, and manpower in the key areas of production and distribution. Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. What is Supply Chain Management Process? SCM processes are the building blocks for modern business. When it comes to key assets or highly valuable goods it is of more importance. SMC process involves various processes that are designed to tackle specific problems. The components of Supply chain management are:- Strategic Planning Process Strategic Planning Process is the process of strategizing and leveraging existing technology and resources available to have maximum benefit from the customized SCOR model that is designed. Strategic Supply Chain Design is made by evaluating and optimizing existing models of a supply chain in the planning such as the score model. Every small movement is studied to reduce the efforts and resources and maximize efficiency. Attention to detail and future projection is kept in mind while crafting the strategies. Strategic planning helps to identify the set of core suppliers and vendors with whom to create a enhance the relationships and to fully utilize their potential.  Demand Planning Process Demand Planning involves Forecasting, Lifecycle, Promotion, and Consensus Demand Planning. Forecasting future demand is done based on evidence such as historical data prospects, emerging trends, and other relevant data and analysis. Statistics methods can be used to better prediction of demand trends. Lifecycle Planning is purely based on forecasting the life cycle of a product from its launch of a product to its maturity and discontinuation. This encourages firms to stay relevant and keep innovating to compete in the industry.  Promotion planning is the promotion plan of a product to achieve the forecasted target. It also includes other special events apart from the plane. Supply Planning Process The supply Planning Process involves stock planning, Outsourcing, Distribution Planning, and Collaboration. Stock planning is the bare minimum supply of raw materials or the stock that should be ready to be used in the production process. This safety stock is determined by multiple factors reasons such as supply irregularity, future projection on price or supply, etc. The outsourcing process is completely outsourcing the production process to a third party. For example, Apple has outsourced its manufacturing or assembly to Asian countries such as chins, India, and Japan. Distribution Planning is the planning of both short-term and long-term distribution of available resources Supplier Collaboration helps receive demand and stock updates more frequently for performing manufacturing tasks. Procurement Process The procurement process is sourcing and acquiring correct materials and services from suppliers. The procurement process includes Order Processing, Receiving Order Confirmation, and Invoice Verification. Order Processing helps in direct procurement from the source or the firm that issues the goods with the order confirmation. At this stage market analysis and price negotiation is conducted to get the best deal at the best price with favourable condition. Receiving Order Confirmation is confirming the received goods with other departments and checking the quality of the goods received. The invoice verification process is the verification of goods received with the purchase invoice. This prevents any loss of product in transportation and to know the exact price of the goods. Explore our Popular Management Courses Leadership and Management in New-Age Business Post Graduate Certificate in Product Management Executive Post-Graduate Programme in Human Resource Management Professional Certificate Programme in HR Management and Analytics Executive Post-Graduate Programme in Healthcare Management Executive Management Programme in Strategic Innovation Digital Marketing and Business Analytics Certificate Programme in Finance for Non Finance Executives Certificate Programme in Operations Management and Analytics Global Master Certificate in Integrated Supply Chain Management upGrad's Job Linked Advanced General Management Program from IMT Ghaziabad Global Professional Certificate in Effective Leadership & Management Advanced General Management Program Strategic Human Resources Leadership Cornell Certificate Program Digital Transformation Cornell Certificate Program Executive Leadership Cornell Certificate Program Management Essentials Management Courses Manufacturing Process At this stage, the raw material gets transformed into a completely new product. This is a crucial stage of production where quality control, optimization of the manufacturing process, and improving efficiency and cost efficiency are looked after. Manufacturing Process involves Production Planning and production Execution. Production planning means planning the production process or scheduling the production process. Which includes the decision to choose the right type of machinery for production, method of production, factory layout, stages of manufacturing, etc. These decisions help in controlling the cost of production, reducing the bulk movements of goods, and productivity. After these important decisions are undertaken, Production Execution takes place. This stage is where the real transformation of raw material takes place and convert into finished goods. Warehousing Process The warehousing Process involves the Process of keeping a record of all the stored goods, maintaining their track record, and storing them in desired condition for their longevity. When a product enters the warehouse it should be stored for a minimum period so that the cost of storing goods should be minimum to the company. Warehousing includes inbound Processing, Outbound Processing, and Physical Inventory management. Inbound Processing involves all those steps essential for external procurement that is necessary for the procurement of goods. Outbound Processing makes them ready for shipping.  Physical Inventory management is all those support activities that regulate the flow of goods to the production space at the correct time. Order Fulfillment Process When the goods are produced and sold the outflow of those goods is looked at under Order Fulfillment Process. This step involves the process of Sale Order Processing and Billing Process.  Sales order processing allows maintaining the outward flow of goods at the desired time while recording the pricing, shipment, order entry, etc. The billing process is issuing the correct bill and recording incoming payments. Transportation Process The transportation Process involves planning, executing, and costing the freight process. After the goods are ready to be transported. Transportation Planning is the process of making a plane with the least financial cost and time-consuming transportation. Transportation Execution is executing the plan that is created. the practicality of the pan is necessary for achieving efficiency.  The freight Costing process helps in calculating the freight cost.  Top Management Skills to Learn SL. No Top Management Skills to Learn 1 Consumer Behaviour Online Courses Financial Analysis Courses FinTech Courses Online 2 HR Analytics Courses Online Communication Courses Online Effective Communication Courses 3 Research Methodology Courses Mastering Sales Courses Business Communication Courses 4 Fundamentals of Journalism Courses Economics Masterclass Online Courses Conclusion: Supply chain management is the key factor that affects the business’s health both in terms of financial and manpower resources. Correct supply chain management helps a business to flourish and grow, on the contrary, a poor SCM process can have repercussions on business health. In the past, there are plenty of examples in which poor SCM completely drained the business resources. So SCOR model supply chain is the lifeline of any business and needs due diligence. The best way to capitalize on this opportunity is to enroll in a certification program such as upGrad’s Global Master Certificate in Integrated Supply Chain Management.

There are a lot of sectors that have witnessed significant growth since the pandemic and emerged as economic boosters. Supply Chain is one among them. According to a recent survey, the global market for supply chain management is estimated to grow by 11.2%, reaching a value of US$ 37.41 billion by 2027, up from US$ 15.85 billion in 2019. Naturally, there is increased interest in this field and if you can land a job in this field, you are bound to have a promising career ahead. The supply chain sector requires exceptionally skilled and talented individuals. The first step to landing a job in this sector is to enrol in a supply chain management course and then bag an interview with an established company. Learn to build applications like Swiggy, Quora, IMDB and more Granted it is a tough nut to crack, but you can do well if you manage to impress your interviewers with your knowledge of the field. Our Learners also read: Free Communication skills course! So, here is a list of supply chain management interview questions and answers to help you out. Top 18 Most Frequently Asked Supply Chain Management Interview Questions and Answers 1. Define Supply Chain Management. Supply chain management, or as it is popularly called, SCM is defined as the thorough supervision of every aspect of the supply chain (including raw materials, data, and finances) from the start to finish. In the process of creating and satisfying demands, supply chain management works to integrate and stabilize the flow of processes from the production of goods to their eventual delivery. This puts executives in supply chain management in direct touch with everyone, from suppliers to customers. 2. What is the Ultimate Objective of Supply Chain Management? Supply chain management is driven towards achieving efficiency in its operations and maximizing productivity in an organization. Companies hope to satisfy the demands of people by delivering the right goods to them on time while profiting from doing so. While streamlining the whole process, supply chain managers ensure that waste is minimized, and there is productive utilization of everyone’s time, allowing the organization to cut costs. All of these smaller goals lead to one ultimate goal, which is to achieve efficiency. Read: Kickstart your product manager career with IMT Ghaziabad & upGrad. 3. What Do You Mean by Affreightment ? The term affreightment arises from freight. It refers to the amount of money that is paid to a charterer in return for renting his vessel to carry the goods. 4. What Comprises Supply Chain Management? Supply chain management is incomplete without including collaborative and integrative practices with its channel partners. Suppliers, retailers, wholesalers, distributors, and customers are involved in the success of a supply chain operation. Supply chain managers must collaborate with suppliers, keep track of demand, integrate the services of wholesalers and distributors, and effectively communicate with everyone involved, including customers, in the process. Read: Essential management skills for a successful career 5. How Do You Define SKU Keeping in Mind the Supply Chain? SKU stands for a stock-keeping unit. It is related to the inventory management field. When we say SKU, it refers to a particular item stored in a particular place in the inventory. 6. What Do You Understand by Compliance Labels?  A compliance label for a product is made with due attention to the standardized procedures of the industry associated with the product. It plays a crucial role in import/export where it is in the hands of the government agencies to define and check these label requirements for exported or imported products. 7. What is the Role of Logistics in Supply Chain Management? The entire process of monitoring the transporting of goods and services from one place to its intended destination is termed as “logistics.” The term logistics was originally used to refer to the transportation of equipment to military armies on the ground. However, in modern times, logistics is not just limited to its definition. It can shapeshift very easily to fit into the demands of an organization. It is more than just delivering the final goods to the consumers. The logistics department is also tasked with the responsibility of warehousing, managing outbound and inbound transportation, planning to meet demands, and handling materials. They are also in charge of inventory management, transport management, and fulfillment of orders. Also Read: Demand of Supply Chain 8. What is the Importance of Logistics? Logistics is important because if the consumers do not get their desired goods, the whole point of production is invalid. Logistics might seem like an insignificant process that is carried out at the end, but it carries the load of the entire process of production. Logistics isn’t something that comes into play when the goods are manufactured and ready to be shipped. It is a process that is active throughout the production. In fact, logistics sets into motion even before the production starts. The procurement process of raw materials is the role of logistics. Moving on, it also takes care of transportation and warehousing. Finally, when it comes to the delivery of goods, everyone is aware of the charm that logistics works in bringing our goods safely — and on time — to us. Read: Product manager growth and career options. 9. What is the Difference Between Supply Chain Management and Logistics? Supply chain management and logistics are two very different processes. While supply chain management is confined to the bigger picture, logistics is comparatively small. Logistics is all about producing the goods in one organization and distributing them amongst the consumers who demand the goods. Supply chain management, on the other hand, is a group of organizations that strive to distribute goods in voluminous quantities among their consumers. In this sense, it is a large scale operation involving multiple moving parts. 10. What are the Activities Carried Out in Logistics?  Logistics operations are mainly confined to three broad categories. This includes collecting goods from the supplier, warehousing, and delivering to intended consumers. However, that’s just a very vague definition of everything that goes on at the operational level in logistics. To begin with, the desired resources are picked up from the supplier, and packaged for transportation. This can be via air, sea, or road. At the destination, the goods are cleared of customs and delivered to the warehouse where they are stored. While at a storage facility, these goods are checked for quality and are grouped accordingly. Details of the inventory are checked for deficits if any. In case there is a shortage of goods, replenishing is done. Goods are then sent to stores or wholesalers for distribution. Logistics also covers the returns process. In short, logistics is responsible for procuring goods from suppliers, managing received goods, and facilitating delivery to end customers. 11. Define Advance Shipping Notice.  It is sent to the customer before the delivery. It contains all the information about the shipment of their products. It comprises details related to the carrier of the shipment, when the shipment can be expected, etc. 12. What Do You Understand by Anti-Dumping Duty? It is an import duty that is levied when the charges of the imported goods are lower than the decided price in the market of the exporter’s country. This results in deficits in the domestic market of the importing country. 13. Can You Explain Less Than Truckload? “Less than truckload” occurs when the transport owner and shipper enter a contract where the owner is not paid in full for the truck. The price of the shipment is taken into account depending on the weight of the goods and the distance it will travel. 14. What is Dead Weight Tonnage? The difference in a ship’s laden weight and unladen weight is known as dead weight tonnage. What this means is, that the weight of all items on the ship is taken into account except for the weight of the ship. 15. What Do You Mean by Blanket Way Bill? A Way Bill containing two or more consignments of freight is known as Blanket Way Bill. 16. What are the Main Issues Transportation Faces During Warehousing?  The process of warehousing is not as simple as we think. It suffers from tracking and communication issues. A warehouse’s safety is a major deciding factor for storing goods. Any delays are accounted for and the costs incurred are also sometimes concerning. 17. During Warehouse Transportation, What are the Safety Points to be Taken Care of? Warehouse transportation is not the safest process out there. It comes with its own set of risks. One must always be careful enough to dodge them. Sharp objects must be cleared off right away. Any loose flooring or those that can cause tripping should be taken care of. Spills should also be taken care of right away. Fire exits should be functional. Proper use of garbage cans should be encouraged. Items should be placed in their designated spots. Cords and wires must have a safe separate space away from the walking space 18. What are the Main Challenges Related to the Supply Chain that Companies are Currently Facing? The supply chain is a vast and fruitful field, brimming with immense opportunities for exploration and experimentation. In the present competitive market, companies that do not invest in supply chain management end up paying a hefty price. These companies fail to take into account many crucial factors like: Rising costs throughout the supply chain. Consumer demands for improved delivery speed and customer satisfaction. Volatile risks in the supply chain such as market fluctuations, trade disputes, etc. The complexities of risk and cost management. Although an interviewer might not ask each one of these questions to you during the supply chain interview, we hope this article gave you a good idea of what you should expect. Read: Product management career path and its scope 19. What are the Roles of a Supply Chain Manager? This is one of those interview questions for supply chain managers that tests your understanding of the supply chain manager’s duties. A supply chain manager supervises and regulates an organization’s supply chain and logistic operations and techniques. They ensure the organization’s efficient working and maximize profits. Moreover, they adopt a critical role in developing and maintaining outstanding rapport with vendors and distributors. With the help of their analytical skills, math skills, and the capability to understand supply and demand concepts, they ensure flawless supply chain management. They track orders, shipments, sales trends, and methods to maximize profits and decrease losses. Furthermore, they accelerate supply using the available technology.                            20. What would a supply chain manager do if a company’s warehouse ran out of stock? It is one of the trickiest interview questions for supply chain officers because it demands an in-depth understanding of the scenario. It denotes the situations when the businesses might run low on their products’ stock. You must answer this question calmly and handle it logically when asked in an interview. When products run out of stock, you would first discern the product’s shortage or materials. You will then determine the amount left (if any). Finally, you would meet with the original supplier to check if you can obtain enough orders of supplies. 21. Which skills are required to be successful in supply chain management? It is one of the popular interview questions for supply chain managers. Usually, hiring managers ask this question to check if the candidates’ skills align with the supply chain manager role’s requirements. Communication abilities and customer service are the two key skills you must have to become successful in supply chain management. They help you when you negotiate with suppliers. Being courteous and professional leads to powerful helps you to build reliable relationships with customers. 22. What are the key elements in inventory planning and management? Many interview questions for supply chain officers are related to inventory, which is one of the most important ones. Hiring managers expect you to make significant decisions about the number of items to order and how frequently to order. You can explain how to increase profits effectively by maintaining enough inventory levels. Inventory and supply levels can be maintained by reviewing inventory numbers and product orders for the last few months. You can use this data to know how many products to order for the next months. 23. How can a supply chain manager’s skills and experience add value to the business? Employers often use these types of supply chain manager interview questions to assess candidates’ strengths and backgrounds. They determine whether the candidate is the best fit for the role or not based on the answer to this question. A supply chain manager’s negotiation abilities and communication skills can help develop long-term relationships with suppliers and clients. These skills help them to negotiate quality product rates that fit well in the company’s budget. 24. What would you improve your company’s supply chain management processes? Employers may ask these types of supply chain manager interview questions to know how they can enhance their company’s overall work. The supply chain managers handle the purchasing and shipping of the company’s products. They better know the company’s products. Going through customer reviews indicates which products customers are satisfied with. New supply chain management systems can be implemented to accelerate manufacturing and deliveries. 25. How does supply chain management work? It is one of the fundamental supply chain officer interview questions and answers. Supply chain management is the integrated management of the flow of goods. It entails all processes that convert raw materials into finished products. Companies can reduce excess costs and deliver products to customers faster and more efficiently after managing the supply chain. Effective supply chain management saves companies from costly recalls and charges. The five most important elements of supply chain management are creating a strategy, sourcing raw materials, manufacturing, distribution, and returns. The supply chain management controls and reduces costs and avoids supply shortages. 26. What is the difference between SCM and Supply Chains? It is one of the tricky supply chain officer interview questions and answers. A supply chain denotes the network of companies, individuals, activities, resources, and technologies used to manufacture and sell products or services. It begins with the raw materials’ delivery from a supplier to a manufacturer and terminates with the finished product’s delivery to the consumer. SCM supervises every touchpoint of a company’s service or product, from creation to the final sale. Several places in the supply chain can add value or incur expenses to a business. An effective SCM can decrease costs, boost revenues, and improve a company’s bottom line. 27. What are the types of Supply Chain Models? (i) Continuous Flow Model: It depends on a manufacturer producing the same good repeatedly and expecting customer demand will small variation. (ii) Agile Model: It prioritizes flexibility according to the company’s requirements. (iii) Fast Model: It prioritizes the fast turnover of a product with a small life cycle. (iv)Flexible Model: It denotes that production can easily be increased or decreased. (v) Efficient Model: It uses equipment most efficiently in addition to handling inventory and efficiently processing orders. (vi)Custom Model: It is frequently used by highly specialized industries (like automobile manufacturers) with extraordinary technical requirements. Before appearing for an interview, you must prepare for such basic supply chain questions.  28.  How are supply chain management and ethics related? You can include such unique questions when preparing for supply chain questions. Ethics has become a significant facet of supply chain management, and led to the generation of a set of principles known as supply chain ethics. Investors and consumers are influenced by how companies manufacture their products and handle their workforce. Consequently, companies respond by introducing measures to control waste and reduce environmental impact. 29. What are the benefits of supply chain management? (i) SCM reduces the cost of running a business. It achieves this by decreasing purchasing and production expenditures. (ii) It develops partnerships that can foster future growth.  (iii) It balances the supply of products according to market demand. (iv)It provides effective and efficient customer service. 30. Will supply chain management be automated? It’s implausible that supply chains will be fully automated currently. They might be fully automated in the future. Currently, many businesses prioritize implementing new automotive technologies for tedious and manual tasks. Although supply chains are trending towards an automated future, there’s a long way to go. The early adopters can benefit the most by surpassing digitally immature competitors via supply chain automation. These types of supply chain questions can help predict the supply chain management’s future. Conclusion Supply chain jobs spread through a vast canvas, both nationally and overseas. Thus, you can choose job profiles either locally or regionally within the country. And if you love travel-oriented jobs, many supply chain managerial roles require traveling both nationally and internationally from time to time. As more and more companies realize the true potential of a well-articulated supply chain management system, the demand for skilled and certified supply chain professionals will increase simultaneously. The best way to capitalize on this opportunity is to enroll in a certification program such as upGrad’s Global Master Certificate in Integrated Supply Chain Management. Learn Supply Chain Analytics Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

Businesses nowadays are involved in cut-throat competition with each other. Whenever a new business opportunity presents itself, the race to reach the customers first starts amongst the existing players in the field. The ease of doing business has improved quite significantly over the years. Small companies with unique products that effectively address customers’ pain points are growing fast. To emerge as a winner in the harsh business environment, the companies have to focus on every detail of the entire business operation, from procuring the raw material to ensuring the timely delivery of the product to customers. Companies hire skilled professionals from specific fields to help them achieve their targets. One such domain which has become essential in current times is Supply Chain Management. Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. What is Supply Chain Management? Supply Chain Management (SCM) is the entire process of manufacturing a product, from procuring raw materials to delivering the final item. Supply Chain Managers have to work on smoothening the process by ensuring the timely completion of the job with the least possible cost. SCM is one of the essential aspects of the business, which helps enhance the company’s profit. How can you gain knowledge in the field of Supply Chain Management? Getting a degree- The traditional and most popular learning method gives you an in-depth knowledge of the field. You can even get a job as a Supply Chain Manager through on-campus placement sessions.  Work Experience- The best way to learn is through practical experience. You can opt for internships to learn about SCM in more detail.  YouTube- YouTube is, hands down, the most feasible way to enhance your knowledge. There are short videos as well as long documentaries on any topic. You can learn according to your pace from your favourite creators.  Podcasts- Podcasts are becoming increasingly common nowadays. You can listen to the famous and experienced people in your field and learn about SCM from them. Books-  Many books written by experts in the field explain various aspects of the topic from their viewpoint. Books help you develop your perspective and enhance your understanding greatly. Top 10 Supply Chain Management Books 1. Strategic Supply Chain Management: The Five Core Disciplines of Top Performance, by Shoshanah Cohen and Joseph Roussel  This supply chain management book talks about good supply chain management strategies and how to implement that into your own business. According to the authors, one strategy is not efficient for all types of business. Instead, the strategy should be tailored to the needs of the company. The book also explains the five disciplines that supply chain managers should consider. 2. Principles of Supply Chain Management: A Balanced Approach, by Joel D. Wisner This book takes you through each step of Supply Chain Management. It focuses on all the essential aspects of Supply Chain Management, such as logistics, purchasing raw materials, etc. The author has explained various real examples, which enhances the understanding even more. 3. Lean Supply Chain and Logistics Management, by Paul Myerson Considered one of the best books on Supply Chain Management, the book focuses on how one should single out the ineffective components of Supply Chain Management. The book also describes lean methodology and tools and how to use them to your advantage. 4. The Forklifts Have Nothing To Do, by Joseph L. Walden Written by an author having 25 years of experience leading supply chain operations, the book gives excellent insights into supply chain operations. It contains practical improvement methods for smoother SCM and better company profits eventually. 5. Managing Supply Chain Operations, by Lei Lei, Leonardo Decandia, and Rosa Oppenheim This supply chain analytics book focuses on various determinants of Supply Chain Management, such as demand forecasting, capacity analysis, and inventory management. There are also case studies and strategies in the book which help you get your foothold strong in the subject. 6. Avoiding a Supply Chain Apocalypse: Be Ready For Any Supply Chain Disaster, by Tom DePaoli The book offers several approaches which can be followed to ensure smooth Supply Chain Management. It includes solutions to identify and correct supply chain mistakes and run a supply chain based R&D department.  7. Essentials of Supply Chain Management, by Michael H. Hugo The supply chain management book clearly explains the management and operation of the supply chain. It contains guides and real-world examples of various supply chain activities adopted by the companies.  8. Supply Chain Metrics that Matter, by Lora M. Cecere Through this book, you will be able to understand various impactful steps to use the supply chain effectively to provide help to the company. It lives up to its title well. 9. Supply Chain Management for Dummies, by Daniel Stanton This is a comprehensive guide that helps manage all aspects of a business, such as sales and purchasing. This leads to a positive impact on the supply chain of the company, hence boosting overall efficiency and business growth. 10. Supply Chain Revolution: Innovative Sourcing and Logistics For a Fiercely Competitive World, by Suman Sarkar The supply chain analytics book presents valuable insights for companies to excel in the current business environment. It lays out strategies on how to satisfy the consumers.  If you are interested in building a career in the field of Supply Chain Management, you can check out Michigan State University’s Global Master Certification in Integrated Supply Chain Management in collaboration with upGrad. You get the chance to learn from the live sessions hosted by the esteemed faculty of Michigan University. You also get the opportunity to interact and learn from your peers spanning all over the world. There are also one-on-one mentorship calls and interview preparation help available for the students.  Our Top Management Programs & Articles Product Management Certification Program from Duke CE Leadership and Management in New-Age Business from Wharton Online Top 4 Functions of Management Process Explained Leadership and Management in New-Age Business from Wharton PG Program in Management from IMT 5 Key Skills Required for Successful Management Career & How To Achieve Those Skills? 8 Crucial Business Management Skills Every Manager Should Have Why Should You Consider Product Management as a Career Option? Top 7 Career Options in Management To Choose [For Freshers & Experienced] Conclusion- There are a lot of employment opportunities created in a field due to the increasing need for specialised individuals. The business wants to have a strong team that can assist them in reaching their goals faster.  Supply Chain Managers are one such group of expert professionals who are in huge demand due to the excellent strategies they devise that help the company achieve its targets. Many youngsters are opting for this career path for the field’s excellent exposure.  At upGrad, we have guided students from all around the globe and helped them land the perfect job in SCM. Check out our Global Master certificate in Integrated Supply Chain Management to get more details about our offering. This MSU accredited course runs for six months and provides you with all the information and guidance needed to begin your SCM journey. 

Introduction  Supply chain and Finance are two topics that are interrelated and are dependent on each other. Where supply chain refers to all the processes that help a company provide its products and services to the customers, finance refers to all the monetary transactions carried out within a company. Since most of the finance sector of a company is dependent on its customers and the outreach, the company’s supply chain plays a very crucial role in performance and revenue. In the United States, supply chain operations account for around ten percent of GDP, which is almost $1 trillion. Financial Supply chain management is a sector that deals with both supply chain management and financial management and considers both of the processes as a whole instead of viewing them as individual processes. Here in this article, we will be discussing Financial Supply chain management in a more defined manner, covering most of the topics which a beginner should know. Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. FSCM  FSCM or Financial Supply Chain Management refers to the process of combining the individual fields of Finance and Supply chain holistically. FSCM has been derived from Financial Supply Chain. The Financial Supply chain refers to all the transactions that occur between trading partners, such as sellers and customers, in a financial or monetary form for the production, purchasing, and supply of goods and services. Financial supply chain management helps a company get in enough finances to cover all the expenditures spent on carrying out the supply chain processes. The introduction of supply chain financial services from the financial organization with various approaches to payable procedures and payment arrangements among trading partners gave rise to the idea of Financial Supply Chain Management. Huge participants and external financial suppliers provide financial services that enable the supply chain as a whole to become more efficient while competing. It fundamentally simplifies the design of payment operations by using open accounts while also allowing small members to benefit from the best credit ratings of more significant contributors, lowering their capital expenses. Ultimately, it enhances the value chain’s short-term liquidity and strengthens long-term supplier-buyer ties. Our Top Management Programs & Articles Product Management Certification Program from Duke CE Leadership and Management in New-Age Business from Wharton Online Top 4 Functions of Management Process Explained Leadership and Management in New-Age Business from Wharton PG Program in Management from IMT 5 Key Skills Required for Successful Management Career & How To Achieve Those Skills? 8 Crucial Business Management Skills Every Manager Should Have Why Should You Consider Product Management as a Career Option? Top 7 Career Options in Management To Choose [For Freshers & Experienced] Importance of FSCM In any company which offers goods and services, the finance, insurance, and transaction costs typically contribute to around 5% of the amount spent on the unit price of that good or service. Since these components are all included in the FSCM, businesses must strengthen their end-to-end financial supply chain management to get the most out of the offerings. Plus, it’ll also help them maximize customer satisfaction. Typically, there are two factors that contribute to a favorable atmosphere for Financial Supply Chain Management. The first one is that since network technology has evolved, it has resulted in more visibility throughout the physical supply chain. If the supply chain processes are more transparent, then it would surely attract more customers. The other factor is a thorough awareness of end-to-end procedures and collaboration both within and outside the company to let the customers have a piece of good information about the company’s offering. The actual problem for the finance, treasury, and banking domain is persuading businesses that better financial supply chain operations will result in a lower cost of products sold, more productivity, and better financial savings management data. Here is when Financial Supply chain management comes into play. Processes in FSCM  Financial Supply Chain Management consists of three major processes. These processes include the Procure-to-Pay (P2P) cycle, Working Capital Management, and the Order-to-Cash (O2C) cycle. These processes not only deal with the financial and supply chain flow but also focus on the requirements of the employees in a company.   Procure-to-pay (P2P) cycle  The Procure-to-Pay process describes the trading cycle from the perspective of the firm purchasing resources, commodities, or services. The corporation selects, gets, and settles for the components needed to manufacture the services or goods they provide to their consumers throughout this procedure. Working Capital Management  Working capital management is a strategic budgeting approach that a business develops to manage current resources and liabilities for sustaining its financial efficiency. It does so by ensuring that the company has enough working capital to satisfy brief expenditures such as paying utility bills and employees any short-term financial commitments. Working capital management reduces the time it takes to transform assets and liabilities into money while also assisting in the improvement of profits and, most crucially, profitability. Inventory management, as well as accounts receivable and payments, are all part of working capital management. Order-to-Cash cycle The Order-to-cash cycle is similar to the P2P process, but it is viewed through the lens of the corporation delivering the supplies, commodities, or services. It begins when the seller provides their customers with an estimate and finishes when the payment is received, and the bill is reconciled. Trade receivables are an essential part of this cycle from a financial standpoint. The accounting department must generate revenue in the most effective and timely manner possible after the invoices have been issued. Advantages of FSCM  Financial Supply Chain Management offers benefits to both the suppliers and the buyers since both of them are the two essential parts of the supply chain. It provides a number of benefits for purchasers. The buyer is able to stabilize the supply chain, optimize working capital, generate positive cash impacts, boost credit rating, and raise liquidity due to the extended credit duration. The provision of early payment alternatives appears to be the sole evident benefit for suppliers. Apart from that, they benefit from being able to minimize outstanding bills, obtain favorable financing rates, reduce financing expenses, make flexible decisions, and increase efficiency. Not only that, but correctly managed supply chain management may aid in the development of trust, confidence, and hence the strengthening of the buyer-supplier relationship. This would allow them to work on better terms and for a more extended amount of time. If you’re interested in learning about Financial Supply Chain Management and building a strong career in the domain, then you can check out the Global Master Certificate in Integrated Supply Chain Management offered by the Michigan State University, which is ranked No.1 in providing supply chain degree graduate programs, in collaboration with upGrad. The course offers many advantages such as resume building, 1:1 interaction with mentors, live faculty interactions, student support, discussions, and many more. Conclusion  Financial supply chain management is highly significant in today’s world. It is not just required by large corporations; small firms and startups can tremendously benefit from it as well. In a world where many businesses face fierce competition, financial supply chain management provides a safe, collaborative, and prudent means to guarantee that everyone participating in the process, including consumers, sellers, third-party members, and others, stand to gain from it. Featured Program for you: Global Master Certificate in Integrated Supply Chain Management from Michigan State University

Introduction What exactly is Supply Chain Management? Supply chain management integrates demand and supply management not just inside a business but also throughout all of the supply chain’s numerous members and channels so that they function together as efficiently as possible. It is basically the management of a product’s or service’s complete life cycle, starting with managing the raw materials and concluding with the delivery of the end product to the customer. Learn Supply Chain Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. In today’s world, the survival of any business in any economic environment and dynamic market depends on creative yet practical business strategies and robust supply chain management jobs. Businesses must integrate IT with supply chain and logistics to enable effective coordination across all supply chain components, from sourcing and production to reaching the endpoint as customer expectations evolve. Effective SCM ensures a balance between demand and supply in the market keeping all parties involved happy. Our Top Management Programs & Articles Product Management Certification Program from Duke CE Leadership and Management in New-Age Business from Wharton Online Top 4 Functions of Management Process Explained Leadership and Management in New-Age Business from Wharton PG Program in Management from IMT 5 Key Skills Required for Successful Management Career & How To Achieve Those Skills? 8 Crucial Business Management Skills Every Manager Should Have Why Should You Consider Product Management as a Career Option? Top 7 Career Options in Management To Choose [For Freshers & Experienced] Why do people opt for a Supply Chain Management Job? If we go by the data provided by the US Bureau of Labor Statistics, Supply Chain Management majors are expected to expand 30% in the next ten years, substantially faster than the average for all jobs. Supply Chain Management provides a comprehensive perspective of the entire organization. It affects several departments, including manufacturing, procurement, shipping, accounting, finance, marketing, warehousing, R&D, and sales. It is an ever-changing, ever-expanding business. SCM is increasingly impacting more C-suite choices and influencing entire business operations. Supply Chain Managers have a wide range of work opportunities, making it a suitable alternative for people searching for various career possibilities after college.  How to Get Your Dream Supply Chain Management Job? According to a 2017 survey by APICS, a Supply Chain Management research organization, millennials regard SCM as a career option with a lot of growth potential. Are you enthusiastic about this field and want to land a dream job in it? If yes, then read further to get some tips on how to get hold of a decent job in this domain as a Supply Chain Management analyst, logistics coordinator, or distribution manager. 1. Educational Qualification Before applying for a decent job in Supply Chain Management, you need to ensure that you possess excellent educational qualifications so that your degree makes you stand out among other candidates. Undoubtedly, the competition for top positions is tough and being hired without a recognized certification is nearly impossible. An exception may be if the individual has unique expertise in a specialized field with few other qualified candidates, although this is uncommon. It is fantastic if you have the ability, time, energy, and money to pursue a university education. Finance is another area where you can’t go wrong. The most prevalent path into supply chain management is to earn a Bachelor’s degree in business, finance, or engineering, followed by an advanced certificate for a field leading to logistics and supply chain management jobs. 2. Well-built Resume When applying for any job, your resume works as the best self-marketing tool. At the very beginning, the employer gets to see you through your resume; thus, try providing your best impression through it. The outline should not include all fancy formatting and fonts; instead, it should clearly illustrate your professional advancement by business, title, and quantifiable accomplishments in each job in plain fonts and structure. When someone looks at your CV, they only give it 30 seconds of their time. If the recruiter cannot find relevance within 30 seconds, it is discarded. If the hiring manager can find what they’re looking for within these quick seconds, they will spend more time learning about you and testing if you are indeed fit for any role in SCM. Thus, the format, consciousness, and transparency of a resume are essential factors to determine whether or not you will make it to the next step of the recruitment procedure: The Personal Interview. 3. Personal Branding Can Be Used As A Tool The ideal platform for marketing your skills is LinkedIn. Make and maintain a disciplined LinkedIn profile for yourself so that the management department of various companies can find you. Include all keywords relevant to the sort of SCM job you wish to win over. Recruiters and managers are increasingly turning to social media, particularly LinkedIn, to evaluate potential candidates by looking at their links and postings. Writing and publishing content might help you improve your profile significantly — the more, the merrier. 4. Start with an entry level Job To land your dream job, you need some prior experience, so if you are a fresher, you might look at various entry-level positions to obtain the required experience in the field. Many internships and entry-level logistics and Supply Chain Management jobs at various places do not require prior experience. Still, some do require basic educational qualifications like a diploma, certification, or, in some instances, a bachelor’s degree from a recognized institute. 5. Make the interviewers understand your value Since supply chain management is primarily reliant on strategy, it’s critical to show potential employers that you understand the issues you will face in the field and how you will effectively address them. Candidates who can demonstrate that they comprehend the “big picture” and can get the task done are preferred by managers. Those who can show that they can interact successfully with others in the business and make data-driven judgments will also capture the manager’s attention. Thus, try giving your best at the interview by demonstrating your skills and making the recruiter believe in your abilities. If you want to get started towards landing your dream job in the supply chain industry, check out the Global Master Certificate in Integrated Supply Chain Management under the Michigan State University in collaboration with upGrad. It offers a detailed curriculum on SCM concepts and projects through 150 hours of learning content, live sessions under the guidance of industry mentors, and 1:1 feedback rounds on assignments.