Why does Supply Chain Management have such a Low Profile?

Supply Chain and Quality Management


Next Topic

Supply Chain and Quality Management > Best Practices > Why does Supply Chain Management have such a Low Profile?

Why does Supply Chain Management have such a Low Profile?
Anurag Pandey, Student (University), United Kingdom, Member
Supply chain management and logistics are major part of most organisations activities and yet they have a low profile in many organisations. Why? Thanks.

SCM has no Low Reputation Anymore
S MISHRA, RM, India, Member
It was 20 years back, but not anymore nowadays.

Why Has SCM Such a Low Profile?
Tom Brouillette
I believe that SCM has a low profile because the practitioners are highly capable problem solvers and are able to 'make do' with what they have. I have always said that the SCM team in most organizations has been treated as the 'red-headed step child' of the organization because of this. This causes a problem for the SCM organization because they are often times overlooked when allotting capital funding for projects because of their problem solving capabilities.

mishael, Student (University), Ghana, Member
I think SCM is now becoming the integral part of most organizations. Most organizations are now including procurement officers who do productive procurement for the company.

Low Profile of SCM
Heiko Bohm, Manager, Switzerland, Member
I believe because SCM has still not made it fully to be a competitive advantage that can be sold to clients. It is more regarded as "it has to happen" and if done properly will save some cost as well.
But let us face it, nobody will buy your product simply because you win some logistics excellence award.

Why Has SCM Such a Low Profile?
SRIDHAR S. RAO, Manager, India, Member
Individuals / organizations do not see SCM as revenue generators, but as "spenders".
It is in the deep mind of conventional businessmen that only sales & marketing are revenue generators.

SCM........ Low Profile
Shahid Mahmood Ch., Manager, Pakistan, Member
@Tom Brouillette: totally agreed, I personally believe that there are 2 to 3 main factors which causes the poor image of SCM:
1) 100th item is always not managed/manageable by at least every manager due to 100s of justified reasons, and the concerning production/planning departments knowingly and un-unethically (most of time) use the same as a scape goat, so in every meeting most of the time is spent on sc/purchasing.
2) Regardless of sales and marketing, SC is most of time following to pay out its vendors, its human psychology for draining-our capital.
3) Last but not the least standard rating of SC is always after sales and marketing, production, planning, finance and accounts. Purchasing is easy, logistics... arrangement of transport... again easy, and the same for inventory control... Hope every one understands the "voice of a SC heart".

Why SCM... Low Profile
Jayant Vardhan, Manager, India, Member
Well, maybe I will never understand why SCM has as low profile. SCM has the ability to convert expenses into profit. A capable SCM department can help to increase the profit considerably.
But maybe the credits go to other departments like planning, purchase, marketing, accounts.
Nowadays Indian organization know the importance of SCM because after every department planning/process it is only the SCM department who is doing the things accurately and their activities decide the accuracy of other departments.

Why SCM has a Low Profile
John Mafela Dube (MBA,CMILT,MZIM,MIAMZ), Student (University), Zimbabwe, Member
SCM and Logistics lacks funding in the form of advanced specialised training in major renowned universities and colleges. A good brand sells by itself and every organisation wants to be associated with a good brand. Marketing overtook many disciples thanks to professor P. Kotler and his team.

Supply Chain Now Emerging as Backbone of Companies
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
Supply chain is no longer a low profile. Initially it was just restricted till purchase where CHASING was a main task.
You will find that it has become the backbone of an organisation. In a few years, the war won't be among companies but among their supply chains.
This can be very well seen by the example of Dell who captured a lot of the market of laptops from Compaq and HP, by successfully pioneering SCM concepts like TQM, JIT, and postponement.

SCM is no Longer a Low Profile Concept!
Murli JS, Management Consultant, India, Member
Over time the concept of Supply Chain management has gained acceptance and it has its own place now. The inclusion of principles and techniques of Quality Control and the attempts to focus on improvement of processes has remarkably transformed the profile of SCM.
Now, it is no more a low profile concept.

The profile of supply chain management depends upon the industry
Samuel Eleko, Student (University), Canada, Member
Supply Chain Management is a support service in most organizations. The profile it has now depends on the core business / industry of the organization. I will not be surprised if SCM is not rated with Petroleum Engineering in an Oil & Gas company, but it will be a surprise if a supermarket chain rates the importance of SCM as low.

Supply Chain Low Profile also depends on the economic times
Kwakye Kwame, Manager, Ghana, Member
This concept of a low profile SCM is conditional driven:
- When times are good, most organizations focus on the production or sales channel to maximize revenue.
- In difficult times they turn to SCM to cut down their input cost.
This is always an ongoing process because organizations see SCM as a support service instead of value creation.
When a "Stage Gate" process is implemented, it shows how significant it is to align the goals and objectives of SCM to the rest of the organization and with suppliers and customers as firms no longer compete with each other but rather SCM vs SCM.
Competitive advantage is realized by the firms who are able to attain lowest overall cost for the end customer via excellent SCM practises.

Supply Chain is Now a Main Function and not a Support Function Anymore
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
@Kwakye Kwame: Today most of the organizations no longer consider supply chain as a support function.
Recent studies and research by many consultants have proven that Fortune 500 companies are able to maintain their positions because of two main factors:
- Innovation
- Supply Chain Management

Remember it's the FLEXIBLE Supply Chain which always survives and not the STRONGEST.
I accept your argument that in the future companies will compete on their SUPPLY CHAINS and not products as most of their product profiles would be similar in quality. Customers would talk in terms of VALUE and not COST.
The challenge would be COST SAVING and not COST REDUCTION, hence Supply Chain is no longer a low profile irrespective of the economic circumstances.
Most companies have now realized this and are investing in strengthening the SC department.

Supply Chain as Low Profile, is Relative
Emmanuel Fosu, Manager, Ghana, Member
In the past most organizations saw certain aspects of their organization as supportive. Any person who could read and write was supposed to be able to manage that.
But organizations now appreciate and have come to terms that NOT every employee can effectively and efficiently manage the supply chain component of the business. This is a testimony of the relevance of supply chain in modern business.
The challenge is now on supply chain practitioners to make the profession unique and not compromising and not employing persons with no supply chain background in the field.

Supply Chain and Quality Management

Best Practices

Supply Chain and Quality Management


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.1 - Last updated: 19-8-2019. All names of their owners.