If ordering is just placing orders, and shipping putting things on board of an aeroplane or vessel, stock control just recording and shelving. Simple as these, then supply chain is only clerical.
If we accept this, then the vast various costs and labour associated we'd pay with no doubt that 'all are necessary', along with it are the acceptance of failed deliveries. 'Damn it. ... Well It's just how it is.'
Sometimes, it is.
A lot of times, it is not...
Supply Chain (SC) Management, we say, is a science or specialised profession, as it takes no less than engineering to implement and fulfil a tailored dynamic system for different businesses so that things are as expected to the biggest extent.
And so the business could enjoy lean costs, efficiency through the chains, effective collaborations across the functions (SC inclusive), adaptability to sustain fluctuations of business requirements and environment change, as well as solidity on deliveries.
To effect dynamic SC system, it usually involves:
✦ Thorough business understanding
✦ Having a holistic and dynamic view of this SC system
✦ The big view is breakable into details as:
Where to put sprockets, bearings and fasteners?
How to connect them
What and how to power up
How to make it breathe with environmental change and the new settings of business development goals
- Risks and opportunities management
- Anticipating
- Planning and implementations
How to ensure the results?
- Quality
- Cost
- Timing (in time and continuity)
- Sustainability
It requires the knowledge of:
* Business operations
* SC matrix itself
* Contracting and related laws, eg Business laws
* Supplier relationship and performance management
* Logistics operations and related regulations, eg Customs Acts and Tariff
* Finance and Taxation
* People management
* Technology and the trend
This might sound a bit complex now. While all above are fundamental to comprehend, design, implement and sustain the system. Comes to effect it, it's like shopping at Ikea, we don't necessarily take the whole shop back to make things work.
The critical starting point is Understanding the Business.
Comments