What are supply chain managers and why are they so important?

What are supply chain managers and why are they so important?

Supply chain managers are essential to businesses getting products to customers on time and at a reasonable price. Amplio makes any CSM’s life easier ✓
Terry Jeffords

A supply chain manager is an important role that keeps a business monving behind the scenes. A supply chain manager is responsible for managing the flow of goods and services to their company and its customers. This job can be done on a large or small scale depending on the size of the business.

There are many jobs of supply chain management. The main responsibility of a supply chain manager is to ensure that their company has adequate inventory at all times to meet customer demand, while also ensuring that costs are kept low enough so that profits are maximized. This requires having an understanding of how much inventory should be purchased at one time so there's enough product but not too much sitting around waiting for customers to buy it, as well as knowing when it's time to replenish stock as they run out (or even stop selling items altogether).

Managing the supply chain is an essential job

Supply chain management is an essential part of every company. It’s a broad term that can mean different things to different people, but ultimately it involves the planning and execution of all activities that ensure a product gets from its raw materials through to the customer. It’s a complex process involving many moving parts.

Here are a few of the essential roles that a supply chain manager carries out within an organization:

  1. Efficiency and Cost Optimization: Supply chain managers are responsible for ensuring that goods and services flow smoothly from the point of origin to the point of consumption, optimizing efficiency and minimizing costs. They coordinate procurement, production, transportation, warehousing, and distribution activities, and streamline processes to eliminate bottlenecks, reduce waste, and optimize inventory levels. This results in cost savings and improved profitability for the organization.
  2. Risk Management: Supply chain managers proactively identify and mitigate risks associated with supply chain disruptions, such as natural disasters, geopolitical issues, transportation disruptions, or supplier failures. They develop contingency plans, diversify suppliers, and implement risk mitigation strategies to ensure business continuity and minimize the impact of disruptions on the organization.
  3. Supplier Relationship Management: Supply chain managers establish and maintain relationships with suppliers, negotiate contracts, and monitor supplier performance. They ensure that suppliers adhere to quality standards, delivery schedules, and ethical practices, and address any issues that may arise. Strong supplier relationships are crucial for maintaining a reliable and efficient supply chain.
  4. Demand Planning and Forecasting: Supply chain managers analyze demand patterns, market trends, and customer preferences to develop accurate demand forecasts. These forecasts drive procurement, production, and inventory decisions, ensuring that the right products are available in the right quantities, at the right time, and in the right location. This helps in minimizing stockouts, reducing excess inventory, and improving customer satisfaction.

How much do supply chain managers make?

Supply chain managers make around $90,000-$150,000. They usually work in manufacturing, logistics, or retail industries and they're paid the highest salaries in the oil and gas industry. While supply chain manager certifications exist, they’re typically unnecessary to excel in the industry.

Supply chain manager job description

A supply chain manager is responsible for overseeing and optimizing the end-to-end flow of goods and services within an organization's supply chain. They develop and implement strategic plans, manage procurement and supplier relationships, analyze demand patterns, plan and forecast demand, drive process improvement, mitigate risks, and ensure sustainability. They play a crucial role in achieving operational efficiency, cost optimization, and customer satisfaction while staying updated with the latest trends and technologies in supply chain management.

Why is supply chain management so stressful?

Careers in supply chain management can be stressful for a number of reasons. The first and most obvious reason is due to its importance. The supply chain manager job is tasked with overseeing the financial viability of a business, which means that their performance directly impacts the success or failure of an organization. If a company's supply chain manager makes bad decisions, then money is lost and/or products don't get produced correctly.

If you're in charge of managing a supply chain, it's difficult to know if your efforts are having any positive impact on the company as a whole. It takes time for changes to take effect within a supply chain; sometimes you have no idea if what you're doing is working until long after your decisions have been made. This can make it tough for people who are new at this kind of job (or even veterans) because they may not be able to see results right away—and they may also be unsure whether or not their actions were effective until later on down the road when everything has settled down again!

Common obstacles for supply chain managers

As the number of products, services, and suppliers in your business expands, so does your need for a tightly managed, efficient supply chain. This is because each new supplier adds to the complexity of your operations. In order to keep up with this complexity and remain competitive in today's fast-paced marketplaces, it's important that you have effective processes and systems in place to manage those suppliers effectively.

Managing multiple suppliers can be tricky because many factors must be taken into account when determining how much product should be ordered from each supplier at any given time (i.e., shelf life/production capacity). As you add more products and services from different industries into one centralized location within your organization there will likely be some problems along the way that need solving before everything runs smoothly again. These may include certain delays or disruptions due to unforeseen circumstances outside human control like supplier shortages due to weather conditions affecting crops' growth rates during harvest season or even things as global as political turmoil.

Great supply chain managers work closely with their engineering team

The best supply chain managers work closely with engineering teams to ensure seamless collaboration and coordination between the two functions. Here are some ways in which they typically work together:

  1. Collaborative Product Development: Supply chain managers collaborate with engineering teams during the product development process to ensure that supply chain considerations are taken into account. They provide input on design for manufacturability, cost optimization, and supply chain feasibility. They work with engineering teams to select suppliers, materials, and components that meet quality standards, cost targets, and delivery requirements. This collaborative approach helps in designing products that are optimized for the supply chain, minimizing potential supply chain disruptions and ensuring smooth production and delivery.
  2. Supplier Selection and Management: Supply chain managers work with engineering teams to identify reliable suppliers who can meet the organization's quality, cost, and delivery requirements. They provide input on supplier evaluation criteria, conduct supplier audits, and negotiate contracts with suppliers. They also work with engineering teams to manage supplier relationships, address any quality or delivery issues, and implement supplier development programs. By collaborating closely with engineering teams on supplier selection and management, supply chain managers ensure that the organization has a robust and reliable supply base to support its engineering and production requirements.

In summary, the best supply chain managers work closely with engineering teams to ensure that supply chain considerations are integrated into the product development process, collaborate on supplier selection and management, and drive alignment between supply chain and engineering functions. This collaborative approach helps in optimizing the supply chain and ensuring smooth operations, cost optimization, and customer satisfaction.

The COVID-19 pandemic has taught us a lot about our supply chains.

The COVID-19 pandemic has taught us a lot about how important supply chain management is when it comes to protecting public health: it's clear now more than ever before that supply chain resilience is an essential part of a supply chain manager's risk mitigation strategy. Not only for businesses but it's also imperative that governments prioritize improving their countries' ability to maintain a steady supply chain for food and protective equipment amidst widespread outbreaks by investing heavily into their own domestic production capacity rather than relying too heavily on imports from abroad.

We all depend on supply chain management working well, so those who do it are very important people.

Suppose you're a business owner, and you want to make sure your company is running as smoothly as possible. How would you do it?

Supply chain management professionals are the ones who make sure this happens by working with their teams to ensure the supply chain is always working smoothly. As such, they are an essential part of any successful business.

The next time you go to the store or get something delivered, think about how much work went into getting that product there and the benefit of supply chain management. Without a good supply chain management team, we'd be stuck with empty shelves and shut-down factories.

If you're interested in developing a more resilient supply chain, reach out to Amplio to learn how!

Get updates to your inbox.

Get the latest industry benchmarks and keep learning about your assets' value
We never share your data.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.