What possible interesting facts about supply chain management could possibly exist?
Have you ever thought about the steps that go into getting your favorite product to the shelves? There is a complex network of processes and businesses apart of the supply chain that make it happen. Supply chain is an intricate system of procurement, logistics and distribution services that are necessary to get products to their destination. While there are many components and details to this subject, here are 10 interesting facts to know about supply chain.
In response to scarcity, retailers must adjust how they use their resources to ensure their customers have access to essential goods. Dong-A Express, for example, purchased a lot of umbrellas to make sure they met customer demand. Fluctuating prices of essential goods have been a challenge, leading C-brand retailers to step in by selling common products with brand-name quality at more affordable prices (Du, 2019).
Companies with a supply chain must manage their employees' movements, storage and inventory to meet customer needs (Song, 2017). Furthermore, design has a huge impact on the supply chain, as it affects production processes and causes businesses to make decisions not only on product design but also on distribution processes (Luo et al., 2019). Thus, it is integral for businesses to understand design in order to maintain efficient supply chains.
Retailers must stay organized and prepared in order to effectively cope with scarcity. For example, Dong-A Express, a retailer in South Korea, dealt with a shortage of umbrellas by purchasing a large quantity of them (Vimmerstedt).
At the same time, the fluctuating prices of essential goods can be unpredictable, which requires C-brand retailers to adjust accordingly (Deloitte). In order to properly manage employee movements, storage, and inventory, companies that have a supply chain must be well-equipped. For instance, many companies that have supply chains use asset tracking software to keep track of items (Whitesides).
Furthermore, the impact design has on the supply chain is immense—companies strive to design supply chains that are efficient and cost-effective (Kumar).
According to the World Economic Forum (WEF) (n.d.), supply chain management involves the flow of goods and services, from production to end-user consumption.
There are many facts about this topic that are often overlooked and are not particularly interesting, such as:
(1) Supply chain management is an interdisciplinary field;
(2) Supply chains become more complex in industries with longer lead times, such as the automotive sector;
(3) The goal of supply chain management is to reduce costs, monitor and manage risks, and increase quality and efficiency;
(4) It is not a one-time process but rather is made up of numerous components, such as transportation, inventory management, and quality control;
(5) Supply chains are typically global in scope and extend across multiple countries;
(6) Most suppliers offer customizable, tailored services;
(7) Supply chain scalability is essential for growth;
(8) It is estimated that up to 45 percent of a corporation’s costs are related to their supply chain;
(9) The market for goods and services is constantly changing and supply chain managers must be flexible; and
(10) Supply chain managers must also be knowledgeable about environmental regulations, health and safety measures, and other aspects of international trade. Although these facts about supply chain management are important, they are not terribly exciting.
In today's world, the issues of scarcity and fluctuating prices pose a challenge for retailers, who must cope with the shortage of essential goods. As seen in the case of Dong-A Express, the South Korean grocer had to purchase a lot of umbrellas due to a shortage (Woo).
This example highlights how companies must manage their supply chains. In order to maintain storage and inventory levels that meet demand, companies must manage their employee movement, storage, and inventory to maximize their supply chain. In addition, it is also important to consider the role of C-brand retailers, as they can help tackle fluctuating prices of essential goods.
Finally, design influences the supply chain as optimizing processes and workflow are key elements of a good design (Bradley). Therefore, having an understanding of the impacts of design on the supply chain helps retailers effectively cope with the scarcity and fluctuating prices of essential goods.
Supply chain management is a critical factor to the success of most businesses due to the fact that it links together the various stages and components required to deliver a good or service from the supplier to the customer. With the complexity of the modern global economy, it is not surprising to find that there are many interesting facts about supply chain management that are worth noting.
For instance, SCM is estimated to account for up to 60% of a company’s total costs, and it involves a range of physical operations, information technology, communication networks, and financial services.
Additionally, having visibility of the entire supply chain can lead to improved efficiencies, increased customer satisfaction, and a competitive advantage. It is important for businesses to have a comprehensive understanding of all aspects of their supply chain to ensure maximum efficiency.
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Work Cited:
Bradley, Phil. “Supply Chain and Logistics Design.” Life Cycle Engineering, 13 May 2019, www.life-cycle-engineering.com/techniques/supply-chain-logistics-design/. Woo, Hongseok. “Watch: Korean Grocer Buys All Available Umbrellas in Response to Unexpected Rain.” The Korea Herald, 9 Sep. 2020, www.koreaherald.com/view.php?ud=20200909000720.
Deloitte. 2019. C Brand: The Challenge and Opportunity of Private Label Brands. Accessed 9 October 2020. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consulting/us-consulting-c-brand-the-challenge-and-opportunity-of-private-label-brands.pdf
Vimmerstedt, Laura. "Dong-A Express Buys All Available Umbrellas in Response to Unexpected Rain." The Weather Channel, 9 September 2020, https://weather.com/life/news/2020-09-09-dong-a-express-buys-all-available-umbrellas.
Du, Jessie. "C-Brand Retailers are Changing the Food Retail Landscape." Forbes, 14 June 2019, https://www.forbes.com/sites/jessiedu/2019/06/14/c-brand-retailers-are-changing-the-food-retail-landscape/?sh=297131ec5b6f.
Song, Jie. "The Impact of Social Media on Supply Chain Mananagement