“The objective of every supply chain is to maximise the overall value generated by an enterprise”
Bang on! Good supply chain management and processes can increase the value generated by an enterprise by;
§ Reducing the supply chain costs: Good supply chain practices increase the transport utilization, develop the most efficient supply chain network and reduce remnants and stock obsolescence. Any reduction in supply chain costs increases the margins.
§ Optimizing inventory: This would lead to reduced working capital requirements, thereby increasing the value of the enterprise.
§ Better stock availability: Ensuring the product is available when and where the consumer wants it, is the most important supply chain deliverable. With Modern Retailers entering India, shelf out-of-stock has become a very important measure.
“Supply chain is an art as well as a science”
There is no ‘best’ supply chain process or solution. Supply chain processes cannot be copied or re-applied across companies. A solution or process has to be tailored, customized and modified to suit the requirements of the particular supply chain.
”..particular relevance in the small and medium enterprises sector”
For SMEs [Small and Medium Industries], supply chain management is a big opportunity. SMEs could start with a supply chain audit, identify opportunities and develop action steps for improvement.
SMEs can tap the resources of CII and supply chain consultants who would be more than willing to help the SMEs make their supply chains a competitive advantage.