If you’re interested in a career in business leadership and you enjoy both critical thinking and problem solving, supply chain and operations management could be right up your alley. Today’s globally interconnected business world means a growing demand for skilled logisticians and supply chain managers. In fact, according to the United States Bureau of Labor Statistics (BLS), the job outlook for logisticians alone is projected to grow 19% between 2023 and 2033.
Read on for a better understanding of what supply chain management entails, why it matters, and the kinds of roles you can pursue in supply chain management to help decide whether this career path aligns with your professional goals.
What Is Supply Chain Management?
In simplest terms, supply chain management (SCM) refers to the start-to-finish process of creating a good or product and getting it to the end customer. With proper supply chain management techniques in place, businesses can streamline their operations, minimize waste, maximize profits, and still put out a quality product to consumers.
Key Components of Supply Chain Management
Throughout the supply chain, operations and supply chain managers need to be involved in several core components to ensure that goods and products can be delivered to the end customer in an efficient and cost-effective manner.
Planning and Forecasting
During this initial stage of the process, supply chain managers must work alongside other operations and supply chain professionals to forecast customer demand for goods and products. Supply chain management professionals may rely on statistical analysis, algorithms, and other qualitative methods (including customer surveys) to determine customer needs and plan accordingly.
Procurement and Sourcing
In the next phase, supply chain managers must determine where they will get the raw materials and supplies needed to manufacture their products. This may involve meeting with numerous potential suppliers and ultimately deciding on one vendor based on factors like the quality of materials and pricing.
This process is crucial because procuring materials from a reliable vendor can keep manufacturing processes on schedule and on budget. At the same time, businesses must keep ethical and sustainable sourcing techniques at the forefront of their decision-making.
Production and Manufacturing
Once the necessary raw materials have been acquired, it’s time to move into the production and manufacturing stage. Here, materials are transformed into finished products that are ready to be moved to the end customer. This process is critical because, when done efficiently, businesses can maximize their profits while ensuring a quality product is delivered. During the production and manufacturing processes, constant oversight and quality control measures are key.
Logistics and Transportation
The next step of the process is logistics and transportation, which is centered on the movement and storage of goods within the supply chain. This includes warehousing of inventory before it is ready to ship out to customers as well as the process of coordinating transportation to products from Point A to Point B. Specifically, businesses may rely on modes such as cargo ships, airplanes, and trains to get goods where they need to go in a timely manner — using technology like transportation management systems (TMS) to track shipments via GPS along the way.
Inventory Management
Another essential aspect of supply chain management is inventory management, or the practice of maintaining optimal inventory levels to meet demand without wasting warehouse space (or running out of inventory altogether). Supply chain management professionals may rely on advanced tools, including radio frequency identification (RFID) and automated systems, to help manage inventory more effectively while minimizing warehouse or storage costs.
Common Supply Chain Approaches and Methods
In addition to understanding the core components of supply chain management, professionals in these roles should be familiar with how to leverage popular supply chain models and methods to streamline processes and maximize efficiency.
Lean Supply Chain
Introduced by Japanese automakers in the 1980s, Lean supply chain methods revolve around eliminating waste to improve efficiency while focusing on value-adding activities. Although Lean methods may still be used in some cases, these methods are becoming less commonplace in an increasingly digital world. One Labor Notes article, for example, maintains that “logistics and manufacturing employers are shifting to a new model.”
Agile Supply Chain
Meanwhile, the agile supply chain model continues to be used by competitive businesses across a wide range of industries. This method involves the use of careful inventory management and demand forecasting tools to respond quickly to supply/demand changes as they occur. This flexible method makes it easier for supply chain managers to gain a competitive advantage by predicting and responding to market fluctuations readily, which can also improve customer satisfaction.
Integrated Supply Chain
Under an integrated supply chain model, multiple suppliers, distributors, manufacturers, and businesses collaborate in an effort to achieve common goals and objectives. This method is focused on keeping all different stakeholders in the process moving toward the game goals while maintaining strong communication and transparency throughout the process.
An integrated supply chain method can be ideal in situations where companies are looking to reduce costs, better adapt to changing market conditions, and more readily mitigate risks.
Sustainable Supply Chain
As the demand for more sustainable operations continues to increase, so does the use of a sustainable supply chain model that is centered on a more eco-friendly flow of goods around the world. Using sustainable supply chain methods, professionals may take such critical measures as:
- Procuring eco-friendly materials to manufacture products.
- Refining manufacturing processes to minimize waste and recycle materials when possible.
- Ensuring fair and ethical labor conditions for workers.
Following sustainable supply chain management principles can empower businesses to do their part in protecting the planet while also building brand loyalty.
Global Supply Chain
Looking at the bigger picture from a global perspective, following these supply chain management principles can be quite complex. Supply chain managers must coordinate materials, manufacturing, distribution, and other logistics across international borders while maintaining compliance with different customs laws and regulations.
What Does a Supply Chain Manager Do?
While the exact duties of a supply chain manager vary from one job to the next, some common responsibilities include:
- Planning and coordination, including demand forecasting and procurement of raw materials needed to manufacture a product.
- Supplier management, or consulting with different vendors to find the best suppliers for the company’s needs.
- Risk mitigation, taking measures to pinpoint possible disruptions in the supply chain and proactively avoiding them.
- Data-driven decision-making, using data analysis tools to identify trends, make predictions, and ultimately make informed decisions about supply chain processes.
- Sustainability efforts, exploring ways to use more eco-friendly materials while reducing waste and promoting more sustainable manufacturing processes.
Common Careers in Supply Chain Management
So, what kinds of jobs are available in supply chain management? Though this isn’t a comprehensive list, it does cover some of the most common careers in this growing field and what each role entails.
Logistics Coordinator
These supply chain professionals are responsible for overseeing the transportation and logistics processes from start to finish. Logistic coordinators may carry out such tasks as coordinating with shipping companies, processing orders, and monitoring stock levels to ensure that goods and products get from Point A to Point B as seamlessly as possible.
Procurement Specialist
The role of procurement specialists enters earlier in the supply chain by finding suppliers from which to obtain the raw materials necessary to manufacture a product. This may include meeting with vendors, reviewing contracts, and maintaining relationships with suppliers.
Inventory Analyst
Inventory analysts are supply chain professionals who oversee every aspect of a company’s inventory to plan production and streamline operations. They often rely on data analysis to predict trends in demand while planning with procurement specialists and other professionals to meet changing customer needs.
Supply Chain Consultant
These professionals are typically hired by businesses or organizations to improve their internal supply chain operations. They may analyze a company’s current procedures and make recommendations for areas where supply chain management could be improved.
Demand Planner
Demand planners are focused on demand forecasting and helping companies ensure that they can predict when their products will be needed most. This, in turn, can assist with procurement and inventory planning.
Transportation Manager
In the supply chain, transportation managers are responsible for coordinating the movement of finished goods and products from warehouses to customers. This may include planning pickups and deliveries as well as ensuring that customs laws and other regulations are followed throughout the process.
The Role of Technology in Supply Chain Management
Over the years, numerous technologies have been implemented to improve and streamline supply chain management practice. Today’s emerging technologies promise to make major improvements to supply chain management. Namely, tools and technologies like blockchain, the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) may help promote greater resilience, more accurately forecast demand, and optimize efficiency.
The Importance of Supply Chain Management
With effective supply chain management processes in place, businesses stand to benefit in a range of ways. From reduced costs and risk mitigation to improved customer satisfaction and optimized operational efficiency, the right supply chain management strategies and best practices can set businesses up for long-term success and growth.
Pursue a Career in Supply Chain Management
Are you the type of person who enjoys putting your problem-solving and critical-thinking skills to work for the common good? Then a career in supply chain management could be a suitable and fulfilling choice. The key is to start with a solid educational foundation
At Johnson & Wales Online, our College of Business offers a Bachelor of Science in Business Administration Operations and Supply Chain Management program. Students have the opportunity to learn about various aspects of supply chain management — from purchasing and logistics to quality control and communication. Plus, with a 100% online format, you can enjoy the flexibility you need to integrate a college education into your busy schedule.
Learn more about JWU Online’s Operations and Supply Chain Management program by requesting more information, calling 855-JWU-1881, or emailing [email protected] today. Or, if you’re eager to take the next step, start your application for admission.