The five pillars of SCM-efficiency
In this day and age of connectivity, supply chain management is of paramount importance to any retailer. A casual attitude can cost the earth as SCM is regarded as the key to retailing success. Read to know why…
Tags: Supply Chain ManagementBY Jasmeet Sahi | comments ( 0 ) |
Having an enterprising supply chain management solution which guides the entire process of supply, distribution and warehouse management is a necessity for the retailer of today. Focussing separately on the varied aspects of time, labour, transport, environmental factors, amount and type of inventory and the costs involved is imperative.
The need for efficient SCM
The question is not that ‘if’ there is a need for efficient SCM; instead retailers need to think about upgrading existing ways of managing, storing and distributing inventory. Apart from the market growing both in size and in scope, the number of buyers increasing there has also been a rise in the competition too. And it is efficient service that gives an edge to any logistics company. Vineet Kanaujia General Manager – Marketing, Safexpress says, “In today’s date, it is vital for every organisation to enhance its operational efficiency as well as reduce the cost to manage the viability of its business. And, this would happen only through an efficient Supply Chain Management.”
The five pillars of SCM efficiency
There are a few factors that need to be taken into account when planning a supply chain management solution, essential aspects that can give an advantage to the whole process of SCM. The five pillars of supply chain management are:
Efficiency encompasses within its gamut, operational and resource optimisation, wherein the investment is easily recovered in terms of profit and sales. The resources such as vehicles, labour etc need to be dependable (outsourced or not) and cost-effective.
Managing fulfilling costs
Making a promise of a delivery of goods and keeping your word is at the base of supply chain management. Time is an essential quantity with which the modern world measures efficiency. Fulfilling promises and delivering goods on time is something that can help a logistics company immensely.
Finances should be taken care in terms of labour management, hiring of transport, storage of inventory, secure warehousing and delivery on time. Optimising of finances is necessary because the supply chain forms a chain between the retailer and the customer and a lot depends on them, hence a need to understand the sensitivity of their job is a must for logistics personnel. This can be achieved with sensible hiring and optimisation of finances.
Adoption of technology
RIFD tags for inventory, bar codes, ERP etc are some of the technologies a retailer can adopt to ensure inventory delivery on time and with the required amount of security. RIFD tags and ERP technology are like a travelling database, wherein the retailer has full access of what type of quality and quantity of inventory is being transported
Improving environment variables
To keep in account the weather changes, truckers strikes, riots and natural climates is crucial while managing a supply chain. “Due to certain unanticipated situations there is always a need for an efficient Supply Chain Management. Since our country’s infrastructure is still in a state of growth, and also the topography of our country is such that unforeseen conditions are very much a part of our business, there is a big need for an efficient SCM.” adds Kanaujia
Lastly, managing a supply chain with its various features of storage, collection and delivery is not an easy task. But a task, nevertheless that needs to be mastered to achieve retailing triumph.
- Logistics & Supply Chain
Risk Management for
Since a supply chain is an organically combined set of different businesses and related activities,