When it comes to supply chain management, there is often a lot of confusion about who should be responsible for different elements of the company’s supply chain. It’s no surprise that knowing who is accountable for various tasks can be confusing when every company has slightly different standards and processes. While some companies may assign certain roles as primary points of contact, at other companies there will be overlap with multiple departments assuming responsibility for different elements of supply chain management.
What is Supply Chain Management?
A company’s supply chain refers to the process from sourcing materials needed to create the final product, through manufacture, shipping and distribution, and finally ending with retail distribution to end customers. Supply chain management, therefore, is the act of managing all of these various stages to ensure that each one is operating efficiently and effectively. In some companies, supply-chain management will be a specific department responsible for overseeing the manufacturing and logistics process for the entire business. In other companies, though, supply chain management will be responsible for managing specific elements of the supply chain, such as sourcing materials or ensuring that products are manufactured according.
Which Department is Responsible for Supply Chain Management?
The specific department responsible for supply chain management will vary based on the company and its product offering. In many consumer goods companies, supply chain management is handled by the procurement department. In companies that manufacture products, supply chain management will be handled by whoever is responsible for sourcing the raw materials used in manufacturing. In some companies, supply chain management is handled by multiple departments that all have a stake in the supply chain process.
Importance of Supply Chain Management
A company that has strong supply-chain management practices in place is much better positioned to deliver on its sales forecasts and production quotas. Customers are likely to be happy with the prompt delivery of the product and will likely be more likely to make repeat purchases. Supply chain management processes also contribute to overall business efficiency and help to ensure that companies are meeting all of their key performance indicators. In addition to these functional benefits, supply chain management practices can also play an important role in a company’s branding efforts. Customers are likely to be happy with a company that is able to deliver on its promises and keep its customers well-stocked with a consistent supply of product. It is likely that these satisfied customers will become repeat customers and may even recommend the company’s products to others.
Every company is different, so it is important to know who is responsible for which aspects of supply chain management at your company. In order to be as efficient as possible, it is important to fully understand your role in the supply chain process and be able to identify any inefficiencies.
