Supply Chain Management (SCM) is the management of the complete flow of goods from their original manufacturing location to their consumption point. It includes tracking the shipment, managing inventories, reverse logistics, overseeing production, warehousing, boosting sales, and enhancing distribution. Thus, the supply chain plays an integral role in the success of the manufacturing and retail business. Between 2022 and 2027, the supply chain industry is expected to grow at a CAGR of 14.72%.
The top trends of SCM in 2022 are technological advancement and digitisation, tech-enabled remote sourcing using technologies like AI, Virtual Reality and Blockchain, usage of drones for last-mile deliveries, energy-efficient smart warehouses, and usage of greener transportation methods. As per Technavio, due to increasing manufacturing and government reforms, the third-party logistics market in India is expected to grow by $10.74 billion from 2020 to 2025 growing at a CAGR of 8%.
SCM Has Huge Potential (Article Index)
- India’s e-Commerce & Supply Chain Management Market Trends
- Common Myths About Supply Chain Management
- PGP in e-Commerce and SCM
- India’s e-Commerce & Supply Chain Management Market Trends
- The pandemic gave a huge boost to cloud technology, and it is now expected to be an estimated $1,250 billion industry by 2028. Technological advancement and digitalisation opened the door to transparency and end-to-end encryption of the sensitive data involved, which is valued tremendously in this era. This enables the stakeholders to make instant decisions in real-time without worrying about their privacy and security.
- The post-pandemic restrictions have made it quite difficult for logistic businesses to enable standard procurement procedures. Travelling or shipping through the standard procurement process is often halted, and the only feasible solution to tackle this problem is tech-enabled sourcing.
- The third-party e-Commerce platforms have gained more power in their favour, giving them more control over the global retail sector. SME retailers will probably emerge as a sector with a greater share, resulting in a shift of sourcing towards small sized retailers. Small-sized retailers who work for multiple buyers will lead to a global sourcing shift, changing the traditional industry algorithm.
- Companies are becoming more environmentally friendly, and even customers favour such companies. There is increasing use of green energy in the transportation segment as companies are adapting to greener alternatives.
- Common Myths About Supply Chain Management
Myth #1: Technical/Engineering background is a must.
It is true that the logistic and SCM domain is witnessing significant technological advancement and sophisticated engineering. Yet, there is no rule or requirement that anyone with no such background is barred from entering this domain. If you are a graduate, you can do one of the short-term courses in logistics and supply chain management, and open doors to immense opportunities. TimesPro’s short-term online e-Commerce course will make you adept in domain-related knowledge and industry-relevant softs skills to help you wider your horizons.
Myth #2: A career in Supply Chain Management is monotonous.
Many people associate supply chain jobs with monotony and dullness; however, the truth is different. In fact, supply chain jobs are quite challenging and exciting for those with an analytical bent of mind. The lack of proper research and knowledge of this stream is the core reason why people usually overlook it as a good career option.
The jobs are demanding and interesting for those who like to be on their toes. Whether it is ensuring timely shipments, tracking inventory, managing the warehouse, procuring raw materials, managing finance, or making new projections, every role has inherent challenges and offers learning opportunities.
Myth #3: Cost cutting is the prime focus of SCM.
It is a big misunderstanding that one needs to constantly think of ways to cut down costs of operation to gain maximum gains. Cost-cutting is not what the key focus is. The focus is on improving efficiency through proper management of SCM, timely deliveries, reverse logistics, etc. When efficiency is attained via the best use of resources, operational costs get reduced automatically. Another main benefit is happy consumers, repeat customers and enhanced ROI. It is worth mentioning here that regular inspection must be made on the unwanted and unnecessary expenses for optimum use of resources.
Myth #4: All decisions originate from data.
Making the right decision is crucial for every business today where data is playing a key role. However, forecasts or predictions made based on data are not always accurate. There can be a margin of error in these predictions. Even in today’s data-driven age, human wisdom cannot be underestimated when it comes to making key SCM business decisions.
Myth #5: Automation is apt for moving forward.
Automated processes indeed result in more efficiency by lowering cycle times, lower operational costs, minimal transportation, and delivery errors, etc. This is why we often hear of AI-powered warehouses, machine packaging, automated inventory management and so on. The truth however is that automation is not good in all SCM functions and situations. Too much automation can disrupt the supply chain in case of technical fault and result in downtime and losses thereby. Other disadvantages are security concerns, and mistakes that are overlooked, and involves huge investment.
Myth #6:: Supply Chain Management is not a great career option.
The future of Supply Chain is bright. Post-pandemic it has evolved into a key sector despite the challenges. Rise of e-Commerce, digitisation, new players, investments, new policies are the key growth drivers. The Indian logistics and SCM market were projected to reach more than $300 billion by the end of 2021. e-Commerce logistics is also gaining momentum. Demand for timely shipments is high. Competition is cut-throat and lots is happening. Opportunities are immense for the right candidate and salaries are good. As per Ambition Box, A Supply Chain Management’s Manager’s salary in India can be anywhere between ₹3.8 Lakhs to ₹26.0 Lakhs, average salary being ₹13.0 LPA.
- PGP IN E-COMMERCE AND SCM
Post Graduate Programme in e-Commerce and Supply Chain Management by TimesPro is an exclusive course developed and designed for potential candidates looking forward to a promising career in SCM. It is among the best Post Graduate Programmes in SCM available in the country.
It has been designed by top professionals, specialists, veterans, and industry watchers so no key aspect of the industry is left untouched. It helps candidates to get started in a perfect way and a few years later be the best-in-class managers who will shine in their careers, seeing the desired success they have always dreamt of.
To know more: https://timespro.com/the-most-common-myths-about-supply-chain-management-debunked/
