Supply Chain Management of Different Retail Formats

If you ever sat through a TV commercial, drove to your nearest store, and bought your favorite item at an unbelievable price, you can thank the manufacturer’s supply chain managers for a job well done. In a nutshell, supply chain management is the sum of all activities that are involved to reach a product into your hands. It includes everything right from the time the raw materials are extracted, to the moment you fish out the credit card for payment and take the product home. Supply chain management focuses on forecasting and planning, buying, product assembling, moving, storing, and tracking a product till it reaches the customer.

Is supply chain management important for an organization? Absolutely yes. Companies like Toyota, Hindustan Unilever, Wal-Mart, Proctor & Gamble, Samsung and others, consider it as a major factor for their success. The supply chain system makes it possible to manufacture and deliver products faster, better, and cheaper. It holds good for Nike shoes, Starbucks espresso, Apple iPods and every other product that you enjoy every day.

Not only is the supply chain system important for the leading multinational companies, in today’s fast paced and global field, it offers tremendous career opportunities. There’s a high demand of supply chain managers, but with limited supply, which means there’s a wide range of job options and career advancement prospects.

Almost all companies, irrespective of the type and size, need well-prepared and motivated individuals to become their future supply chain leaders.

Importance

Notwithstanding its importance, an efficient supply chain management system is one of the most misunderstood and underrated factors of business management. A supply chain system, which can be local, regional, or multinational, controls the flow of product and information, and ultimately, the flow of revenues.