Welcome to the presentation on, “Why Training in Supply Chain Management is Indispensable?”
To begin, let’s first understand What Supply Chain Management really is about
In their web article, Thomas Wailgum and Ben Worthen define Supply chain management (SCM) as the combination of art and science that goes into improving the way a company finds the raw components it needs to make a product or service and deliver it to customers.
It includes all activities involved in the process of procurement of raw materials to the delivery of finished products is said to be supply chain. These activities include procurement, production, distribution, sales etc. The process of managing all these activities is known as supply chain management.
Why is supply chain management so important?
Supply chain management system involves decision making at various levels such as procurement, logistics, and production, forecasting the demand etc. to ensure timely delivery of finished product and reducing the cost. The decision you take may break or make your company.
Decisions of one department can adversely affect the functioning of the other departments and may play havoc on timelines. Therefore, collaboration and coordination between various departments becomes very crucial.
Activities involved in the supply chain are inter-related and need a combined effort to ensure all stakeholders work towards a common goal.
To manage all these complex set of activities, you need to have some systems in place. So how is it done? Various supply chain management software system have come up to help organizations manage their supply chain requirements. In some cases, they are integrated with the companies ERP system and in other cases they roll out separate systems.
Whatever be the methods adopted by the organization, it involves getting employees to use the new methods and systems. Training plays a crucial role in the process.
Let’s see how training helps in supply chain management.
New processes or systems are usually met with resistance. Training helps employees understand the need for change and how it benefits them and the company as a whole.
Employees in different departments need to understand their individual responsibilities and how it helps in achieving a common goal. They cannot work in isolation. Training helps them to understand the whole supply chain process and how they fit into the whole system.
As employees get an overview of the entire supply chain process and the role played by them, they are able to take decisions keeping in mind the overall picture instead of taking localized decisions that can impact other units.
Most modern organizations use some form of software solutions to monitor and manage their supply chain process. It is not adequate to have a good software system in place. You need to train your employees on how to use it.
Before training employees on how to use the software, you need to educate them on why they need to use the software. No matter how good the software is, its success depends on employee’s acceptance and its effective use. Therefore, as a part of the training program employees need to told and convinced why they need to switch to a new system.
They also need to be told about the benefits of using the software both for the organization as well as the employees. For example, the benefit could be something like getting to know of the need to place fresh orders well before the stock position comes to a critical level.
Only when employees understand the need for the new system and its benefits should they be trained on using the software. They are more likely to appreciate its value and use it dedicatedly.
Supply Chain Management involves complex set of processes and it needs the support and commitment of employees to succeed. Training is indispensable if organizations want to ensure smooth supply chain management.
Why Training in Supply Chain Management is Indispensable?
What is Supply Chain Management?
What is Supply Chain Management?
Supply chain management (SCM) is the
combination of art and science that goes into
improving the way a company finds the raw
components it needs to make a product or
service and deliver it to customers.
Strategy Procurement Production Distribution Sales Service
Decision making at various levels are important
for on time delivery of finished product.
Coordination and collaboration between various
departments is crucial
Activities of all departments to be aligned to
achieve a common goal
Supply Chain Management involves complex set
of processes and it needs the support and
commitment of employees to succeed.
Training is indispensable if organizations want to
ensure smooth supply chain management.