Strategic Goals and Objectives in Supply Chain Management

9/14/21 10:30 AM

Supply chain management is what makes the world go round. It is how we get our products from their raw materials, transformed into their final form, and ultimately delivered to end consumers.

supply chain management ensures that goods are delivered to customers around the globe

What is Supply Chain Management?

Supply chain management can be defined as the management of the set of processes that move materials and products through the supply chain, from the suppliers to the end consumers. These processes ensure that goods arrive in the right quantity and at the right time to fulfill customer orders and meet their expectations. 

 

The Importance of Supply Chain Management

A well-managed supply chain will is essential for any manufacturing organization that is looking to maximize its profits and reduce any disruptions. 

If you are looking to improve your operations and implement supply chain management strategies, it is important to explore some of the main goals of supply chain management. These strategic goals include ensuring efficiency, improving quality, and optimizing transportation. These goals will help you reduce costs, increase efficiency and profits, and can even help you gain a competitive advantage within your industry. You will be able to meet your customer’s needs and foster brand loyalty among them.

Within this blog, we will discuss these strategic goals and objectives and how they can benefit your overall production facility and operations to ultimately enable you to reduce costs and increase profits. 

 

Top Three Strategic Goals and Objectives of Supply Chain Management  

The top three strategic goals and objectives of supply chain management include the following: 

  • Ensuring Efficiency - For obvious reasons, efficiency is one of the most important aspects of supply chain management. In manufacturing, efficiency is defined by the ability to fulfill customer orders in a timely manner while using the least amount of inventory or WIP. While operational efficiency is essential, efficiency between links in the supply chain is also important. Effectively managing inventory, transportation, and logistics can be a complex process; especially for companies who do not have an adequate ERP, MRP, or APS system. However, the collaboration between manufacturers, wholesalers, and retailers is essential to maximize the efficiency of your operations. Manufacturers should focus on increasing the visibility within their operations as well as with their suppliers and other retailers to improve the efficiency of the entire supply chain. 
  • Optimizing Transportation and Logistics - Another key component within supply chain management is optimizing transportation and logistics. Within an independent business environment, each company is responsible for its role in ordering, shipping, and transportation of goods. In this business model, the cost are rather high due to poor timing and collaboration. With supply chain management, your process should “flow” and have your suppliers, manufacturers, wholesalers, and retailers all on the same page at all times. Visibility is extremely important to achieve this goal of supply chain management. This will allow you to plan optimized transportation and logistics activities with any vendors or buyers you work with. Having visibility within your own operations will allow you to determine when you will need to purchase additional material and when your products are to be completed and able to ship to retailers.
  • Focusing on Quality Improvement - As stated above, the main goal of the supply chain is to produce products and deliver them to customers. It is important to keep in mind that the goal is not only to provide consumers with a product but to provide them with the absolute best value possible. This goal should be shared by you and your supply chain partners. It is impossible to produce a product of high quality while using low-quality materials and parts. As you work to be more connected with your supply chain partners, the quality of your products and services should improve dramatically. Another important aspect to consider is that value and quality are determined by the customer. They are the ones that decide which items they want to buy and most consumers are willing to pay more money for items that they judge are of better quality. Manufacturers should collaborate with their customers to identify their main needs and figure out how to create products that will be of value to them. Any inefficiencies or drawbacks of your products will be identified and will offer you an opportunity to correct and improve your products. This information should also be shared with all partners along the supply chain to ensure that all are working towards a common goal.

There are a multitude of benefits that come with incorporating supply chain management goals and objectives into your own business objectives. Supply chain management will dramatically reduce costs by improving operations, managing inventory, and reducing disruptions. It is important to consider that even a small reduction in production or storage cost can lead to big savings in the long run. 

An Advanced Planning and Scheduling (APS) software can help with your supply chain management needs by increasing visibility within your production operations. Systems such as PlanetTogether APS can help you identify production bottlenecks and other areas that are in need of efficiency enhancements. Not only will this system help you reduce your operational costs, but it will also ensure that you are adequately managing your inventory. This will help you foster good relationships along the supply chain, from your suppliers who receive enough notice for materials, to your customers who are able to get their items in a timely manner. Manufacturing facilities around the globe are reaping the benefits of using advanced planning and scheduling systems like PlanetTogether. 

 

Our production plant is faster and more efficient, which keeps our facility in better spirits and running smoothly.

GREGORY VAN LEIRSBURG, PRODUCTION SCHEDULER, STANDARD PROCESS SUPPLEMENTS

 

Advanced Planning and Scheduling (APS) Software

Advanced Planning and Scheduling Softwares have become a must for modern-day manufacturing operations as customer demand for increased product assortment, fast delivery, and downward cost pressures become prevalent. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. APS Systems can be quickly integrated with an ERP/MRP software to fill the gaps where these systems lack planning and scheduling flexibility, accuracy, and efficiency.

With PlanetTogether APS you can:

  • Create optimized schedules that balance production efficiency and delivery performance
  • Maximize throughput on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to resource capacity
  • Enable scenario data-driven decision making

The implementation of an Advanced Planning and Scheduling (APS) Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system. APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or demo!

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