Companies can maintain a steady stream of profit with the help of an effective supply chain manager. Supply chain management is a part of companies because it helps to: monitor inventory levels, connect departments, predict future needs, identify defective products, and manage customer orders to prevent issues from impacting the production process.
If you’re considering taking a course in supply chain management but are unsure how companies can use the skill, the importance of the role is highlighted in this blog post.
1. Monitor Inventory Levels
An important part of a supply chain manager’s role is to monitor a company’s inventory levels. This is important because it helps to allocate resources, prepare accurate budgets and determine the exact amount of storage space they’ll needed to keep the goods. If owners are not able to accurately monitor their inventory levels, then they may not be able to meet customer demands if they don’t have immediate access to the materials.
A supply chain manager is able to mitigate against this risk because of their ability to track industry’s conditions and compare it to the company’s financial status. Based on their expert assessment, the specialist will then be able to gauge growth in the coming year and apply it to how much inventory they will need. In turn, this helps to better allocate the companies resources by providing more information about the materials and labor they’ll need.
2. Inspecting and Quality Reassurance
Without a supply chain manager, most owners don’t have the time inspect production lines. This can result in poorly made items leaving the facility as a result of the declining quality. If a company’s production begins to experience a decline in quality, it will impact sales once consumers receive the item and are unhappy with it.
To prevent a loss of sales, a chain manager is needed to conduct quality reassurance inspections throughout all of the production phases.
3. Managing Customer Orders
It’s important that companies take the time to address issues or concerns with customer orders. Although this personalized attention is critical for growth, it can be difficult for owners to manage without the help of a supply chain manager.
The chain manager is typically in charge of customer orders and handling any concerns with the product. Companies that don’t have a designated team handling these requests will inevitably experience a decline of sales based on the distrust and poor experience they provide.
4. Detect Issues with the Process
The supply chain manager is also responsible for detecting any current or potential issues with the system. These issues can vary and therefore require an expertly trained professional who is capable at analyzing the system.
Common types of risks that mangers have to mitigate against include: failing technologies, ineffective systems, poor layouts and limited communication among workers that results in delay. If the manger does notice an issue impacting the company’s process they will be responsible for informing the owner immediately with an analysis of it. Finally, managers will be able to suggest tactics can prevent it from reoccurring and impacting growth.
5. Predict Future Production Needs
The manager will also be responsible to analyse current market trends and company data as a way to predicting what the future needs of their production line will be. This responsibility typically requires a data analysis to manipulate the data and produce the trends. Without the careful preparation of data from the specialist owners may not be prepared to handle an unexpected shift in demand which can result in financial devastation for their success.