Supply chain management - SMEs' helping hand

Bikky Khosla | 25 Mar, 2008
The crux of any business lies in its ability to manage its supply chain effectively. In today's global business context, firms that can streamline their supply chain and churn out finished products faster will undoubtedly benefit the most.

Unfortunately in India, most manufacturers are faced by hurdles of inefficiencies. While some of them are external, most of them are internal and can be addressed with the help of technology. In Indian SMEs, experience in supply chain management is generally lacking. This phenomenon has particular relevance in the SME sector, which is being forced to perform or perish in the face of global competition.

SMEs need to develop the tools, techniques and training products that help companies to adapt and achieve viability. They need to focus on linkages by which SMEs can integrate themselves in the supply chains of large enterprises. SMEs must use technology-based tools in such a manner that they become the technology sources for larger companies.

Having said that, it is not about using the highest technology or the most sophisticated techniques alone. SMEs need to concentrate on the fundamental principles of being a good supplier or distributor.

To incorporate supply chain management, SMEs need to concentrate on assessing the technology requirements for improvement in processes and management practices.

The objective of every supply chain is to maximize the overall value generated by an enterprise. It consists of all stages involved -- directly or indirectly -- in fulfilling a customer's request.

The management of an enterprise often finds itself caught between customers' mounting demands and the company's need for growth and profitability.

Supply Chain Management (SCM) is an art as well as a science that involves the management of flow between and among stages in a supply chain to maximize profitability.

To realize the importance of Supply Chain Management and to develop solutions best suited for a particular enterprise is the need of the hour. It's all about how you work today for your tomorrow!