Implementation of a rather operative supply chain management strategy is important particularly in fostering an efficient transfer of goods and services in a company’s supply chain. With an increased customer’s demand especially for a quick delivery of goods and services, there is a need for adopting a proper SCM strategy that can be able to complement and support business strategies while driving down operational cost and maximizing efficiency. So what exactly makes the supply chain of an organization the best? While the answer might vary for different companies, there are specific practices that firms tend to adapt to make it a success. This paper, therefore, proposes to discuss in detail the best practices from, SCM, procurement, and Procurement Systems.
Primarily, the main bottleneck in the supply chain process is the division of power especially in making decisions which have proven to slow down operations in a firm. Apparently, aligning supply chain responsibility is, therefore, the best SCM practices to makes sure there is a minimal slowdown of operations in as far as decision making is concerned. In case this power is divided among many individuals, there would be a need of communicating to them when making decisions which make individual lose control of the supply chain. In this light, executive management should always oversee the supply chain process and the overall decision making. With the help of the executive managerial powers involved, he or she can assist in consolidating the division of power that might slow down decision making. In this light, a faster decision-making process would guarantee an efficient supply chain procedure, therefore, ensuring that the demands of the consumers are met as well as utilizing minimum resources available.
Delegate your assignment to our experts and they will do the rest.
In essence, the dynamism and complexity of the SCM department have led to the installation of a rather computerized procurement system by various organizations in the business world. Notably, there are those companies that often tend to select a specific software that would make them more efficient and, therefore, they end up structuring all their workflow as well as processes within the chosen software. However, such companies should instead have a thorough review of the process that requires improvement, and then pick a technology that best fits or satisfies those processes. Many companies in the contemporary society are fond of implementing a particular technology and figure out later. In most cases, such companies have been known to do themselves injustices because they realize later that the implemented technology is not actually what they require. Perhaps this might be the main reason why some companies find it difficult to retrieve data from their supply chain especially in making sound strategies as well as crucial business decisions. A manager has to keep up with the technological advancement and ensure the best practices have been set in place to implement the required technology that would help the system better the supply chain process. The advantage of implementing an appropriate technology is that they tend to recognize signs that an efficient purchase-to-pay process hold. Moreover, there should be an in-depth understanding of the need for the required changes to makes sure that a firm benefit from the intended technology.
In ensuring that the procurement process is more efficient, there is always the need for engaging a collaborative strategic sourcing. Undertaking a rather strategic sourcing has for long proven to be the cornerstone of a successful supply chain management. However, implementing a collaborative strategic sourcing enterprise creates a better result in the long run. This encompasses getting customers involved in giving feedbacks and making certain decisions in a strategic sourcing. By doing this, a firm can solicit these feedbacks as well as information from customers regarding their main objectives and strategies which may include functional areas such as financial accounting and engineering. This practice has often assured a company of the availability of supplies, therefore, resulting in a lower total cost. Moreover, it results in a more streamlined process and a rather increased responsiveness to the changing needs of the clients.
While SCM is an entire process from sourcing to purchasing of goods and services to shipping, and to warehousing, it cannot be complete without the procurement and procurement system. Apparently, SCM works together with the procurement process as the best SCM procedure requires the right bunch of suppliers to negotiate a deal with especially in securing a contract. Additionally, SCM practices require digitization, therefore, involving the procurement system that is up to date and efficient in meeting the changing demands of customers. This, therefore, shows that procurement is a component of SCM.
In a nutshell, it is evident that a firm requires a rather efficient SCM process that is collaborative to ensure that the needs of customers are met. Additionally, procurement being a component of SCM, it is necessary to ensure that all bottlenecks are removed for faster delivery of goods and services to the clients. For this to happen, there is always the need to digitize all the procurement system by using an appropriate technology.
