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Role Of Supply chain management in adding value globally

Role Of Supply Chain Management In An Organization

As you think of the word supply chain management, what is the first thing that comes into your mind? A systematic way to control operations, right? A supply chain within an organization translates to a systematic way of controlling the entire production process. The role of supply chain management in an organisation is to monitor the lifecycle of raw materials as they enter and leave the organization as manufactured products.

An effective supply chain management ensures that the company is getting all the raw material they require for a smooth manufacturing process. Not only the quality but also the quantity of raw material is important. The importance of supply chain management has increased a lot, nowadays. 

Have you noticed how there are different brands offering products that use the same material? For example, different manufacturers use cotton to make hoodies, and so on. Hence, one needs to ensure that they are getting the right amount and quality of raw material at the right time. So, you can say that supply chain management is the survival kit for any business in today’s world.

Value Chain Vs Supply Chain

Oftentimes, people get confused between a value chain and a supply chain. Therefore, let’s dive deeper into understanding what differentiates a value chain from a supply chain. 

The first point to understand value chain vs supply chain is that a supply chain focuses on the operations within the company. A value chain takes the pricing side of products into observation. A supply chain includes sourcing, procuring, converting, assembling, and logistics of raw materials. It starts from finding the best quality raw material at the most affordable rates and then acquiring the right amount that satisfies your company’s needs. 

Moreover, it overviews the conversion of raw materials into products, along with assembling the products when necessary. Finally, delivering the products to the market; all these operations come under supply chain management.

Value chain involves techniques to increase the value of your manufactured products. Basically, the value chain focuses on the profit margin for any organization. To understand the value chain in a better way, consider mobile phones. Different companies launch new phones with almost the same features, but usually, the pricing is different. Ever wondered why? It is because their value chain has optimized over time, and is currently more efficient than the previous one.

Similar is the case with computers and homeware. For a company to have a better value chain than others in the market, it needs to create a better connection between consumer demand and the company’s production. Plus, the research and innovation part should be covered well to keep producing market-competitive products.

How Does Supply Chain Management Add Value For Customers

A company owner knows that their supply chain can work wonders for them. The supply chain is the game changer of any organization and boost your sales exponentially. No other aspect of your company can match the supply chain’s influence on reaching customers, cutting retail costs, and enhancing service levels, which means that good supply chain management benefits both your customers and your company.

The answer to how does supply chain management add value for customers is simple. Two factors highly affect customer satisfaction; price and delivery. By controlling these two things, one can ensure maximum satisfaction of their customers. You can use self-assessment metrics for enhancing the value of customers. Questions like, why did a loyal customer leave you? Or how many customers do you get daily, and are you managing them properly? 

The consumer anticipates excellent service. They’re paying you money to ensure that they get a product on time and in good condition. If an issue arises, they expect your organization to be transparent about why it happened. Including what measures can you take to refund their loss? Your brand’s reputation is more vulnerable than ever before in today’s atmosphere, when a customer may publicly attack your firm on social media.

How To Add Value To The Supply Chain

Here are some ways to add value to the global supply chain:

  1. Increase product offerings: you can introduce new ways to sell your products. Ever seen the value packets of various sauces? This is an example of increasing the product offering. You can expect better sales on such packages.
  2. Enhance customization: needless to say, everyone loves customization these days. Even if it is a very small part of the whole product! So, if you have a product where you have some margin for customization, use that to attract customers.
  3. Reduce suppliers: the more you reduce the number of suppliers, the easier will it become for a customer to reach you directly. The customer will have peace of mind regarding quality, delivery time, and pricing if they order directly from you.
  4. Optimize labor cost: as machinery has advanced today, automated processes save a lotl of time and money. Now, you don’t need hundreds of people to pack products. So, if you optimize the products, it will ultimately save a big amount.
  5. Cater new business needs: this includes both your company’s and customer’s needs. For example, if a new machine optimizes the processes going on in your company, you should ensure you buy it. Plus, catering to your customers’ needs too. For example, if you’re a biscuit manufacturer, introducing a new flavor might work well.

Partner-up if necessary! If you feel the need of having a partner for any of the operations, ensure to get the best onboard. Many companies partner with different marketing companies, while others might have a marketing team within their company. So, ensure that you have the right people for all the work that should be done. Even if it means to partner up with another company!

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Digital Supply Chain – Explained

A digital supply chain’s foundation is built on web-enabled proficiencies. A lot of IT companies use a combination of paper-based and IT-enabled processes. However, a genuine digital supply chain is more than just this mixed model for the capitalization of connectivity. It is an integrated system that has the capability to produce smart components.

The main aim of the digital supply chain is to allow insights for better efficiencies and facilitate better profits. In addition to the sustainability of waste. Companies that work through a digital supply chain have better resources, assets, and people. Moreover, their inventory is better because they can cater to needs at any time. It also reduces the overall expenses because they respond to manufacturing and transportation risks proactively. Furthermore, when a company is hundred percent digital, they can save in every area, for example, resources, time, expenses, and environmental footprint.

The process of a digital supply chain is such that it monitors the inventory levels, interaction of customers, carrier locations, and equipment in real-time. Furthermore, they use this information to plan and execute a high-level performance. 

The following play a vital role in the digital supply chain

  1. GPS tracking
  2. Radiofrequency identification
  3. Wireless sensor networks
  4. Location-based data

The integration of cloud technologies with Web services unifies the information and processes. It creates more efficient collaboration and trading partner capabilities.

Building a digital supply chain isn’t easy. It requires properly planned strategies and organizational skills. Not putting in enough effort can lead to data duplication and inefficiencies.

Traditional Supply Chain vs Digital Supply Chain

Traditional supply chains work on the strategy of planning and reacting, whereas digital supply chains predict and prescribe actions.

Traditional supply chains work on rules that are historical, which makes them tremendously static. However, the digital supply chain functions in real time; it can adapt to changing circumstances. The difference between the two is vast. The former is linear, and the latter is based on networking.

Supply chain digitization relies on information technology and operational technology. Moreover, the system is also integrated, balancing profits and service levels. The traditional supply chain depends entirely on standalone systems.

Supply chains can encounter problems and unwanted effects, which can be a lot of work if traditional. The majority of companies need to perform regular resilience assessments and list the solutions manually. But, for the digital supply chain, the quality control data is shared. It can allow the companies to resolve the issues right away without the requirement of preplanning.


It is very beneficial for companies to incorporate digital supply chain management into their business. The technology will open doors to tremendous opportunities, evolving the world of digital supply chains.

However, a lot of the companies are still working on traditional aspects and switching to digital can take some time. But it isn’t wishful thinking for companies to become technologically pro in the future. Moreover, these digital technologies will be around for some time, so companies can evolve based on their convenience.

In addition, it is important to understand that the skill set needed for Digital Supply Chain is different in contrast to the traditional methods.

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Corporate Sustainability: How to Maintain and Improve It

Having a stable job and job security when the economy is in bad shape is a blessing, especially one that is rewarding, both financially and in praise. In such situations, it may seem like it isn’t necessary to worry about whether your employees are happy. However, if you want your employees to perform sustainably, know that happy employees produce more than unhappy ones. They love their job; hence their chances of quitting are less, and they influence others to be committed to their job, too. Corporate sustainability does not only represent initiatives that require finances, time, and human capacity. Nor does it only create a sustainable strategy, but, it impacts measures and leads towards innovations. 

Large or small, every company makes a difference, which starts from one step. Here are some pointers to emphasize that can help in overcoming low sustainability.

Create a Sustainable Team

If you are unable to create a sustainable department, create a sustainability team. It will enable more minds to focus on and tackle problems. Moreover, come up with solutions that are innovative for the company.

A good sustainability team creates a stronger and more sustainable identity for the company. It is possible that the people in your company would want to make a positive impact, so ask them if they are interested in creating a sustainable team.

Other than that, you should also make sure that the people in your team are from different departments and can meet up monthly. A sustainability team can engage the employees, create awareness, and increase the overall performance of the company.

Paperless Business Cards

100 million cards are printed every year across the globe. Out of these millions of cards, more than 80 percent are thrown away. Using digital cards can combat this problem. Moreover, there are many other alternatives in the market that can be investigated as well.

Sustainable Competence and Knowledge

Sustainability covers every aspect of a business, for example, energy consumption and gain. It is important that employees know what sustainability is to create a system that integrates it. Most sustainability initiatives require expertise and knowledge, such as knowing how to talk to employees and eco-friendly tools for product evaluation.

Eliminate All Personal Office Bins 

Most of the things that are thrown away can be recycled and waste can be reduced. According to the stats, when office bins are removed from under the employee’s desks, the amount of waste is recycled significantly.

It is human nature to use what is convenient. So, when an employee has a waste bin under his desk, he will never walk to the recycle bin. One great example is Curaprox, which is a Swiss company that took the initiative of offices without bins. The amount of waste decreased by fifty percent after this initiative. In addition, general waste decreased by seventy-five percent and sorted waste increased by twenty-five percent.

Productivity and Purpose

Our aim should be towards sustainability because that is better in every way. A company should have a strategic and meaningful approach. They should be able to tie their purpose to their values.