Supply Chain Management Training Strategies to Improve Company Competence and Operational Efficiency

Supply chain management has become the backbone of company operations. However, in this era of disruption, supply chain management faces various challenges that push companies to adapt, one of which is by conducting supply chain management training.

The Wall Street Journal reports that geopolitical tensions, labor disruptions, and natural disasters continue to put pressure on global supply chains, pushing companies to adopt risk management strategies and new technologies to gain a competitive advantage.

Supply chain management training can be a solution for companies to remain adaptive and resilient in managing risks that occur in global supply chains.

A study conducted by consulting firm Oliver Wyman found that businesses that invest in supply chain resilience experienced an average revenue growth of 23% from 2018 to 2023, compared to a 15% growth experienced by other companies.

Therefore, this discussion will examine how supply chain management training can positively impact a company's revenue growth and operational efficiency.

The Need for Supply Chain Management Competencies in the Digital Age

In a business context, the supply chain can be considered the lifeblood of a business. A supply chain is a series of processes or activities that occur from raw materials to finished products, reaching consumers.

Supply chain management, on the other hand, is the method or process of organizing and managing all stages of the supply chain so that it runs smoothly, efficiently, and reduces costs.

The goal of the supply chain management process is to ensure products reach consumers on time, maintain quality, and save costs.

In the digital era and the Industrial Revolution 4.0, the need for competencies in the supply chain is undergoing a significant transformation. Digitalization is a crucial solution for addressing various operational challenges across various industries.

Required competencies now include the ability to utilize advanced technologies such as in-depth analytics, automation, and machine learning to increase productivity, flexibility, and speed in supply chain operations.

Companies that have successfully adopted digital technologies have proven to produce tangible results, such as up to a 30% reduction in inventory and cost of goods sold, a 50% reduction in quality costs, and up to a 30% increase in productivity and cash flow. Furthermore, digitalization also contributes to the ecological efficiency of the supply chain.

To address these challenges, competence in modernizing supply chain information technology systems is crucial, including the ability to redesign processes, select the right technology vendor, and create a digital implementation roadmap.

The ability to implement integrated business planning (IBP) is also crucial. Organizations that are proficient in IBP are able to significantly increase operating profit (EBIT) and reduce shipping costs and the risk of delivery failures.

The Impact of Supply Chain Management Training on Company Efficiency and Competitiveness

To create a resilient and adaptive supply chain management in this digital era, companies must continuously learn. The most common learning process is supply chain management training.

By participating in supply chain management training, companies expect their supply chain processes to become faster, more economical, and more efficient, and thus improve their competitiveness.

Appropriate and tailored supply chain management training will have a positive impact on the company's supply chain management process.

The Council of Supply Chain Management Professionals (CSCMP) highlights the benefits of properly managed supply chain management.

Improving Customer Service through Effective Supply Chain Management

Excellent customer service relies heavily on a company's ability to meet basic consumer expectations regarding products and services.

Customers expect the products they order to be available in the right variety and quantity, and to be available at the right location when needed.

For example, an auto repair shop must have the necessary parts in stock to repair a customer's vehicle on time. Otherwise, customers will have to wait longer, which will decrease their satisfaction.

Furthermore, timely product delivery is also crucial. Delayed product arrivals, such as a pizza arriving two hours after ordering or a Christmas gift not received until December 25th, can disappoint customers and undermine their trust in the company.

Equally important, fast and responsive after-sales support, especially in emergency situations, is highly expected by customers.

Delays in this service can lead to significant dissatisfaction.

By managing the supply chain effectively and ensuring these aspects are met, companies can increase customer satisfaction and build long-term loyalty.

Reducing Operational Costs

Supply chain management training helps companies reduce various critical operational costs.

In terms of purchasing, an efficient supply chain allows retailers to receive expensive products quickly, reducing the need to hold expensive inventory for long periods.

On the production side, a reliable supply chain ensures that raw materials arrive on time, avoiding production disruptions that can lead to significant losses.

Furthermore, effective supply chain network management helps reduce total supply chain costs, allowing companies to meet customer needs at the lowest cost and remain competitive in the market, such as Dell's approach of building computers to order to avoid large inventory costs and the risk of obsolete technology.

Improving a Company's Financial Condition

Effective supply chain management can significantly improve a company's financial position. By controlling and reducing supply chain costs, companies can dramatically increase profits.

Furthermore, efficient supply chain management reduces the need for large fixed assets such as factories, warehouses, and vehicles, thus saving significant capital investment.

Furthermore, accelerating the flow of products from production to customers also improves a company's cash flow, as invoices can be issued more quickly and revenues can be received more quickly, ultimately strengthening the company's financial health.

Improve Your Company's Supply Chain Management Process with the Right Training

An efficient supply chain management process will provide benefits for the company, consumers, and external parties.

For the company, the company can produce products that consumers need at optimal costs and with a fast process, thus avoiding competition.

Meanwhile, consumers can obtain products that meet their needs at prices that are relevant to them.

For external parties, especially the public, there are numerous benefits, such as improving human sustainability, improving human health, and protecting people from the dangers of extreme climate change.

Is your company's supply chain management process having a positive impact on all parties? Is the entire process faster, more efficient, and providing superior value to the company?

If the answer is still no, now is the right time for your company to invest in the right supply chain management training.

For example, Prasmul-Eli's supply chain management training provides operational and non-operational managers with a basic understanding of Supply Chain Management relevant to current business practices, enabling them to expand their business knowledge by understanding the interconnectedness of their functions within the overall business network and ecosystem.