A critical component in the all businesses, large, small, and everything in-between is logistics of goods and services; more specifically, your supply chain. Early on at height of the COVID-19 pandemic everyone was affected by disruptions in the supply chain, a disruption that could last for many years and sparked the beginning of the largest inflation not seeing in the United States in over forty years.
According to the Council of Supply Chain Management Professionals (CSCMP), “Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management (SCM) integrates supply and demand management within and across companies.”
Your business is the focal firm in a supply chain network. Regardless if you are a retailor, wholesaler, or a manufacturer of products or goods, in order to deliver those goods to your customer, SCM will aid you and your business to meet the demands and service expectations of your customers. Even if your business is a service based business, you rely on supplies to service your customers to maintain business operations and prevent bottlenecking. Healthcare organization experienced bottlenecking due to supply chain disruptions and capacity as an unprecedented surge in the demand for laboratory testing created a backlog delaying test results for many people.
SCM looks into various factors of your business when determining a vertical or horizontal integration, or when performing a make-or-buy analysis. Researching tier 1 and tier 2 suppliers and customers while building a supply chain map will enhance customer value and the reputation of your organization.