SCM
Crisis , A Catalyst for Change : The Value of Supply Chain Management
WRITTEN BY LAURA V . GARCIA
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Turning crisis management into an opportunity not only helps supply chains today , but will pay dividends in organisations ’ future value chain
It is said that crisis is a catalyst for change . As companies worldwide struggle to find competitive advantages and increase profitability , we thought it an excellent time to review the value supply chain management ( SCM ) brings to businesses today .
Regardless of sector or size , SCM is a vital part of every organisation looking to maximise customer value and optimise profits . As sales plummet , and costs skyrocket , industries that previously sidelined procurement and SCM for bigger problems now turn to it in hopes of finding solutions and improved profits .
“ With the pandemic and associated economic slowdown , nearly all industries are viewing cost and cash management as essential . In addition , organisations are addressing and managing extreme risk and supply continuity issues . While many companies weren ’ t adequately prepared for widespread disruption of this scale , some may not feel the full effects of the crisis upon their business yet .” says Deloitte .
However , the definition of supply chain management can often be vague and sometimes even perceived as logistics management , so let ’ s start there .
FEBRUARY 2021