La supply chain managementor supply chain management, requires the support of experts in the field in order to optimise the performance of a company. It consists of actively coordinating all the stages that create the company's supply chain, i.e. procurement, production and distribution.

The purpose of a effective management is to improve the performance and theefficiency of the entire distribution chain. Given the ever-increasing complexity of supply chains, it is necessary to rethink and update business dynamics by making the most of new digital technologies and information systems.

The ITS Supply Chain Course is structured to train real experts in the field, capable of coordinating and managing all phases of the supply chain. The employment of experts in the optimisation of logistics and distribution processes is crucial for increasing the performance of your company and gaining competitive advantages.

Supply Chain Management in Practice

According to John T. Mentzer, researcher and professor at the University of Tennessee, supply chain management includes the control of products, services, information, financial resources and demand forecasting. These factors have a potential value which must be exploited to achieve objectives such as customer satisfaction, profitability, value, competitive advantages. Chain management is therefore a systematic coordination between traditional business functions and new strategies to improve performance and competitive advantage.

The fundamental elements for this management to be beneficial and produce the desired results are:

  • Placing data at the centre of all processesThe organisation of information flows plays a major role in process optimisation. Data collection must be capillary in order to improve the company's overall performance. Efficient warehouse management, tracking of goods and control of KPIs, Key Performance Indicators, are essential to achieve a profitable organisation.
  • Standardisation of production processes and greater integration with suppliersThe elimination of barriers between manufacturers and suppliers allows for improved cooperation through standardisation and process integration.
  • Automation of production processes and new strategiesWarehousing, intralogistics and automatic load handling, transport planning and management can be improved by using specific software that is able to better manage and coordinate each phase.

Supply chain management highlights the fact that limited integration within companies is no longer sufficient to be competitive in one's own market.

The upstream involvement of procurement companies and downstream involvement of distribution and sales companies is necessary to increase the value of their products and services. Furthermore, through this process, it is possible to avoiding waste and increase the customer satisfaction.

If a company wants to check its sustainability profile, it can test theESG Supply Chain Assessment Platform. The test is carried out on a web-based platform and is structured to assess the sustainability of its suppliers by verifying the non-financial disclosure of suppliers, collected and documented by the assessed parties themselves.

The ultimate goal of optimised supply chain management is to build and improve collaboration and coordination of all companies involved in the production process with the aim of improving the company's performance.

Author of the article

ITS MOVE - Editor