|
The following is
an attempt to define a Supply Chain Manager depending on the
role he plays in a company having a typical supply chain, for
its business.
Who are Supply
Chain Managers ???
|
For supply chain manager title to exist, it must share common
principles of supply chain and what supply chain managers do,
across industries, not only manufacturing, nor 100's versions of
what we want it. It's Just like production, accounting,
procurement Warehouse, Sales or Audit. .
We should be able to identify activity, task function and group
of functions, entities and industries involved in supply chain.
We should also be able to identify methods, tools, and
technologies used in supply chain as well as strategy, system
and process. They may not be mixed up altogether.
Demand forecasting is a task, not activity nor function,
applicable only for end products, not for mining, oil & gas,
plantation or trading industries. Production function does not
exist in retailing or hospitality industries, but supply chain
exist in these industries. Similarly, distribution does not
exist in upper industries in supply chain, while Procurement
exist in each and every industry.
The Role of Supply Chain Manager depends on the Scope of the
work in the Company.
INBOUND Activities:
The Activities in SCM depends on the functions in your org,
Commonly they start
1 Procurement and Demand forecasting.
Procure Raw Material or Semi finished goods whichever is Cost
effective.
Vendor selection is an most imp aspect. Selecting a right vendor
is very crucial.
Procurement brings Savings to the organisation. Hence Strategic
Sourcing is to carried out
A manager needs to make sure that The MRP or other Requirements
are fulfilled on time and at Right Place and the quality checks
of the Materials are to be done before the goods are forwarded
to the warehouse or manufacturing units. |
|
|
2 Production
In today's world, A Manger needs to focus on Agile
Manufacturing. He Should be very quick and Responsive to the
Changes.
He should be Accurate in preparing Schedule-lines so that JIT
will be accurate. |
OUTBOUND Activities.
1 QUALITY CHECKS PACKING
AGAIN needs to drive the SALES, the BACKBONE of an org that
brings Revenue.
Distribution: Logistic part.
To More Elaborate Strategic view in SCM Would be
1 Warehouse Management
2 Vendor Management
3 Push Pull Strategy
He needs to be more efficient in his work and Each activities
needs to generate Value to the Chain.
A Small Contribution from each of the SCM activities Makes the
Pillar Strong of the Organisation and hence Results in making
your product more Competitive in the market .
Ocean is still ocean, lake is till lake. Whether we are in big
boat or in small boat, the same principles work for sailing in
the ocean or in the lake. Similarly, whether you are in small
firm or in giant firm, weather you are in mining industry or
trading industry or logistics service industry, the same
principles of supply chain and what supply chain managers do,
more or less the same, not 100's versions of what we want it.
What is "end to end process"? What is process, anyway?
It is clear, the job of production manager is to manager
production, which is to manage converting materials from one
form to another, whether its final or intermediate forms. Then,
what supply chain managers manage?
Why selling raw materials or buying products is not? When You
sell Raw Material it will become your Finished Product when you
buy Products it becomes your Raw Material ------
END TO END Process is supply chain management.
Then, what are supply chain activities supply chain manager
manages?
Buying raw materials from supplier to delivering the products to
customer is supply chain manager's responsibility. Why not
selling raw materials or buying products?
In trading industry or in logistics service industry, what are
the responsibility of supply chain manager?
SUPPLY CHAIN MANAGER : We do End TO End process, Buying Raw
Material from the supplier to Delivering the final product to
Customer is our responsibility.
In Layman's Word " Supply Chain Managers are the one Who Manage
the Supply chain activities".
1. Why Sales Function or Maintenance is not involved in you
supply chain?
2. Customer Satisfaction, Expediting, Packing is not a function.
3. Since your logistics is only about transfer of materials, why
don't you call it Transportation?
In supply chain more functions are involved within the firm:
1)
planning
2) engineering
3) sourcing
4) procurement
5) expediting
6) Quality control
7) warehouse
8) packing
9) logistics
10) customer satisfaction |
|
About the difference between the sourcing and the procurement,
we can say that the sourcing department looks for in the market
the better supplier that can provide the right goods or service
at the better price and delivery possible, while the procurement
department has the scope to evaluate the supplier and issue the
purchase order.
About the logistics.
The logistics department manages the transfer of the materials,
contracts order with the carrier and ensure the delivery on time
of the shipment.
Supply Chain is just that, the CHAIN is the LINK between
processes to product. We manage the Chain by ensuring the links
stay connected. Cradle to Grave is another way of looking at it.
We have to ensure that all the LINKs are connected and pulled
together to complete the processes we manage. If you notice I
always said "WE", the reason for that is simple. We are a
process, a function that provides a service to produce results.
The foundation of what we do incorporates every aspect of the
processes, producing results. You can all claim to be a Supply
Chain manager but if your heart is not into the results then
it's only a job producing an outcome not a desired result. There
is a difference when you heart is in your work as the results
are different. WE are not a product but a process and that is
very wide open as all functions of SM are different.
Looking up the definition on the internet only give you a book
version of what we do but not the passion of why we do it.
Supply Chain to me is a TEAM of processes to produce the
Results.
You are a supply chain manager that warrant availability of the
spare parts and service required from the plant.
1. What functions are involved in the supply chain you manage?
2. What makes procurement and sourcing different?
,
3. What is logistics?
1. Purchase(ing) or Procurement is a function in supply chain,
why sales not?
2. What functions are involved in distribution, Logistics and
Warehousing?
Whom Planning Function belong to?
3. In plantation or retailing industries, what would Supply
Chain Managers likely do or what functions do likely include in
supply chain?
From your last comment:
|
1. What makes "Supply is delivery of a product" different from
"Chain is a flow of materials"?
2. How come "Planning is an element of supply chain but planning
is not part of the supply chain function", when you said
"Planning is the starting and always the guide of supply
chain..."?
3. How does exactly "Supply Chain is Customer driven and a pull
mechanism to meet the delivery or shipments as per customers
sales Orders." happen?
Let us understand the words Supply & Chain
Supply is delivery of a product service or information from
origin to the customers need which may change with product
specific and industry specific requirement.
It starts from Vendors Vendor to customers customer in a
Manufacturing & Sales Organisation with a specific demand for a
product in the market.
Chain is a flow of materials, services or transactions to meet
the output or product delivery. it moves forward for materials &
services and in reverse for information , Quality, Market
intelligence, Survey and all Investigation related activity.
Planning is an element of supply chain but planning is not part
of the supply chain function.
In fact demand planning and forecasting is done by Marketing,
Market Intelligence , Product Development Departments or
functions .
Planning is the starting and always the guide for supply chain
to deliver the right quantity of product in the right quality,
to the right place at the right time and of course at the best
price to meet customers delight.
Supply Chain is Customer driven and a pull mechanism to meet the
delivery or shipments as per customers sale Orders.
Purchase(ing) or Procurement is a function in supply chain, why
sales not?
What functions are involved in distribution, Logistics and
Warehousing?
Whom Planning Function belong to?
In plantation or retailing industries, what would Supply Chain
Managers likely do or what are functions include in supply
chain?
I am a supply chain manager.
As SCM my goal, within my field ( power generation ) is the
warranty the on hand availability for all spare parts and
service require from the plant. |
|
Many departments are involved, such as procurement, sourcing,
warehouse, logistics, customers, suppliers, etc
The SCM must arrange all departments that are involved in her
supply chain to achieve her goals.
Supply Chain Managers can be looking after the entire cross
section of Materials from Purchase to Production to
distribution, warehousing & Logistics to meet the supply to
dealers and end consumers.
In some Organisations SCM or Supply Chain Management is divided
into two wings SCM-Purchase & SCM - Distribution, Logistics &
Warehousing and these two wings are headed by a Common Head SCM.
|
