In the wake of the pandemic, industries faced significant supply disruptions, leading to losses in the trillions. This turbulent period spurred the demand for skilled supply chain specialists. Recognizing this critical need, the University of Southern Indiana (USI) offers the online Master of Business Administration (MBA) with a concentration in Supply Chain Management program.
This program trains students with the comprehensive knowledge and cutting-edge tools necessary to excel in supply chain management (SCM) roles. Through courses such as Principles and Practices of Supply Chain Management, this curriculum delves into the analysis and redesign of logistics networks, the transformative potential of emerging technologies and the use of specialized software for supply chain optimization. The goal is clear: to empower businesses to eliminate inefficiencies, enhance customer value and secure a competitive edge in the global market.
What Is the Supply Chain?
The supply chain is the crucial network that links suppliers and companies, transforming raw materials into finished products that reach consumers. SCM aims to meet the ongoing demand for products and maximize the value delivered to customers.
According to Indeed, this management discipline consists of “physical flow and information flow.” The physical flow details the journey of materials from creation to storage to distribution. The information flow focuses on collecting and analyzing data to make strategic decisions, ensuring the supply chain operates in line with best practices for growth and profitability.
Supply chains have evolved significantly from their earliest forms, driven by technological advancements and shifting economic forces. Industrialization marked the beginning of more sophisticated SCM processes, with innovations such as Henry Ford’s assembly line.
For a long time, supply chains operated in a relatively linear and isolated manner, but technological innovation has dramatically transformed this landscape. Today’s supply chains are no longer simple linear paths but interconnected processes that operate 24/7, adapting to the dynamic needs of consumers who demand personalized, sustainable and promptly delivered products.
Recent research by McKinsey & Company accentuates the vulnerability of modern supply chains, revealing that disruptions lasting a month or more occur every 3.7 years on average, significantly impacting organizations’ profitability. This new reality emphasizes the importance of SCM in creating more resilient, flexible and efficient supply networks to meet the evolving demands of the global market.
What Does Supply Chain Management Involve?
SCM is a complex process that unfolds in five crucial phases, each integral to the seamless flow of goods from raw materials to the hands of the customer:
- Planning: This initial phase sets the stage for effective SCM by aligning supply with customer and manufacturing demands. Businesses forecast future needs, considering raw materials, equipment capacity and staffing requirements. Utilizing tools like ERP software, companies coordinate the supply chain to ensure efficiency and readiness for upcoming demands.
- Sourcing: A strong relationship with suppliers is vital in this stage. Companies work closely with vendors to secure the necessary materials for production, focusing on quality, cost, delivery flexibility and reliability. Understanding lead times and supplier capabilities is crucial to maintaining a smooth operation, especially in industries dealing with perishable goods.
- Manufacturing: This phase transforms raw materials into finished products. It encompasses assembly, testing, inspection and packaging. Efficiency and waste reduction are critical here, as any deviation from the plan, such as excessive use of materials, can necessitate a revisit to earlier SCM stages.
- Delivery: Effective SCM ensures robust logistics and diverse delivery channels to manage timely and cost-effective distribution. The strategy includes contingency plans for unforeseen challenges, such as extreme weather conditions affecting transportation.
- Returns: The final phase involves handling returns and feedback. Known as reverse logistics, this process deals with product returns and refunds. It is not just about managing returns efficiently but also learning from them to reduce future issues.
What Does a Supply Chain Manager Do?
Supply chain managers are the architects behind seamless supply chain operation, ensuring every step and component, from planning and sourcing to manufacturing and delivery, functions optimally. They aim to keep costs low and efficiency high while preparing for potential disruptions to maintain a steady flow of goods. Their role involves assessing the supply chain to make it as efficient and cost-effective as possible, recommending improvements and fostering relationships with key partners to ensure smooth operations.
USI’s online MBA in Supply Chain Management program prepares graduates for these critical responsibilities. The program provides comprehensive training in SCM foundations and proven best practices. Graduates emerge ready to handle the complexities of modern supply chains and make strategic decisions that drive business profitability and sustainability.
Learn more about USI’s online MBA with a concentration in Supply Chain Management program.
