Opportunities of Supply Chain Management
ANUJ KUMAR SHRIVASTAVA, Manager, India, Member
SCM has a lot of hidden costs attached to it. But there is also a lot opportunity in it. So SCM always focus at cost saving and not cost cutting.
Let's understand a few key areas with considerable possibilities:
1. INVENTORY: This is a very large segment where a lot of cash is normally blocked from using it for other purposes. You can use various techniques like reorder levels or so to release this cash..
2. SINGLE PO WITH AMENDMENTS: to avoid a material needs to be ordered again and again, a single but trusted vendor can be appointed for a long time who can give you part deliveries on single PO. You may even use technique like MILKRUN or so.
3. SCM has various innovation and techniques like POSTPONEMENT or EOQ or SINGLE SOURCING where there are also lots of opportunities
4. WAREHOUSING also has been an opportunity area as it helps in proper material management and flow.
5. Finally, lots of opportunities are hidden in making your supply chain LEAN, FLEXIBLE, ADAPTABLE, QUICK, RESPONSIVE and COST EFFICIENT.