Supply chain management (SCM) is one of the most important fields that greatly impact the timely flow of products, services and information within the current diverse business world environment. Supply chain management is integrated in this process where the supply chain manager is responsible for every stage and has to fully optimise them for utility and customer satisfaction.
So, what is supply chain management and who is a supply chain manager? Even more important, what skills are required to be effective? This article discusses the various skills of aspiring supply chain management for the year 2024 and the factors of being a competent supply chain manager.
“Supply chain management is the process of monitoring the smooth flow of materials, products and services from the point of their purchase to when they get to the end user.”
This is the act of linking several functions of a business such as acquiring, manufacturing, transporting and delivering as well as providing customer services.
“A supply chain manager is one who oversees the efficiency of supply chain activities in order to achieve the objectives of the organisation.”
This entails supplier interaction, inventory management, cost cutting, increased effectiveness and customer satisfaction. These are the backbone of any company’s supply chain, making sure products are delivered when they need to be and all for a price that has been agreed upon.
Skills required for a supply chain manager are broad, often a combination of technical proficiency, analytical strength and versatility in interpersonal relationships. Here are the top 10 skills for supply chain managers in 2024:
Undoubtedly, one of the most crucial competencies of managing the supply chain is competency in analysing data to make the right decisions. A supply chain manager needs to be at ease while working on large volumes of data used in demand forecasting, inventory or process optimisation. Problem-solving and critical thinking abilities also matter to detect trends to enhance supply chain decision-making.
With strategic thinking it becomes possible for the supply chain managers to align their activities to the overall goals of the firm. It comes handy when developing strategies with a view to improving efficiency, cutting costs and creating a competitive edge. However, supply chain leadership is not limited to supervising the day-to-day operations, while at the same time supervising functions and making decisions that benefit the overall organisation.
In supply chain management, the message that is passed should be clear and comprehensible. A supply chain leader needs to communicate with both the external and internal stakeholders which include suppliers, clients and teams. Clear and effective communication is important to eliminate cases of misinterpretation, enhance practice and production for all the functions in the supply chain.
A supply chain manager requires negotiation skills when dealing with suppliers or vendors. In doing so they can achieve better prices and quality, improved delivery and contract terms, hence cutting costs and enhancing service delivery.
Project management is a critical success factor when it comes to supply chain management. Supply chain managers are mostly expected to lead several projects at the same time, whether these are product development or process enhancement. Good project management means these undertakings are done as planned, cost efficiently, and as per specifications.
In 2024, the supply chain managers must be proficient in technology. A wide variety of SCM processes are supported by various applications such as Enterprise Resource Planning systems, Warehouse Management Systems, and Transportation Management Systems. Basic knowledge of these tools is crucial, so the work is more effective and accurate, data-driven decisions are made.
Risk assessment and management are one of the critical SCM skills. The supply chains are not immune to different forms of disruption including natural disasters and political instabilities. A competent supply chain manager should know some of the forms of risks that are most likely to occur and the measures that can be taken to reduce the impact of the risks.
Every supply chain leader should have a good command of financial skills in order to appreciate the likely results of their decisions on the company’s cash position. This includes the ability to plan for financial systems, to control costs and to analyse the budgetary impacts of strategic supply chain plans. Supply chain managers realise considerable benefits when cost structures are made clear.
Maximising customer satisfaction is a major concern of supply chain management. Supply chain managers should always be close to the customer in order to meet their expectations. This skill is used in comprehending the needs of the customer, guarantees delivery time, and promptly seeks to deal with any concerns encountered to meet the customer’s standard.
For a supply chain professional, team management and employee motivation is important. It comprises delegation skills, and appraisal skills together with boosting the morale of the team towards the achievement of personal and corporate goals. There is a great need for leadership and coordination in the supply chain department in order to maintain order and encourage the workers to be productive.
Having technical skills is no longer sufficient to become a successful supply chain manager. Here are tips on how to be a good supply chain manager:
Stay informed: Such fields as supply chain management are regularly developing in connection with new technologies and methods. Be information savvy, attend seminars and workshops and think about continuous learning.
Build strong relationships: Success in supply chain frequently depends on the kind of relationships you have with your suppliers, vendors and your co-internals. Working on building a positive relationship can help the deal to be carried out smoother and with more benefic terms.
Focus on continuous improvement: It is always wise to seek ways to enhance strategies, reduce expenses and enhance the effectiveness of the outcomes. Build an improvement culture within your team which will result in the long-run benefits.
Prioritise communication: There must be proper communication with all stakeholders since it is important in development. Do not forget your internal parties as well as your customers and suppliers, make sure they know about any alterations that are to occur in the supply chain.
Develop a risk management plan: Discover various unfavorable situations that can be expected in supply chain processes and analyse possible ways to prevent them. It is possible to reduce or eliminate risk and maintain the continuity of business with an effective risk management plan.
In conclusion,
Supply chain management is an ever growing and constantly changing profession that demands skills in analysis, strategy and interpersonal skills to be effective. Therefore, by building up these skills, any manager can align themselves as an asset in the newly emerging supply chain environments. In this respect, readiness to take professional courses is deemed efficient for those who are interested in improving their results in the sphere of supply chain management. Currently the British Academy for Training and Development presents a specialised Advanced Supply Chain Management Course where aspiring managers are trained to be effective managers in supply chain acquiring real-life experience and knowledge.