Why Commemorate Supply Management Month
Supply Management Month, sponsored by the Institute for Supply Management (ISM), occurs annually in March. Use this commemorative month to learn more about supply management and how it affects your company’s success.
What is Supply Management?
Your business relies on the production and sale of products and services. Across the US, supply management handles billions of dollars worth of products and services annually.
Supply management is a term that defines how your company acquires, manufactures, produces, sorts, sells, and delivers products and services. Successful and balanced supply management addresses cost control, resource allocation, risk management, and information collection. These details are all analyzed to ensure the growth and continuity of your company.
Factors Involved in Supply Management
Supply management consists of several factors that are essential for a business to operate properly. Those factors include:
Identification - Identify your company’s goals, risks and performance requirements along with the available product, service and process opportunities.
Acquisition and Access - Discern how to gain and use the products and services that enhance operations and build your company.
Positioning - Improve your company’s financial portfolio by acquiring and accessing the best products and services, assuring quality and supply flow, and attracting innovation.
Resource Management - Improve efficiency, minimize expenses and maximize income as you manufacture and deliver products and services from the beginning to the end of the process.
Supplier Relationships - Form, nurture and maintain positive and professional relationships with suppliers in order to achieve the best prices and quality for the products and services needed to secure and improve ongoing operations.
Technology - Use technology tools and procedures to broaden product procurement and benefit service delivery.
Education and Flexibility - Top supply management professionals remain educated and flexible as they embrace and implement changes in procedures, technology, information, needs, risks, and strategies.
Related Capabilities - Meet challenges and gain the first advantage with strategic sourcing, scenario planning, cost management, risk management, and effective systems.
Why is Supply Management Month Important?
Everyone in your company works together to achieve one goal - the success of your business. However, each department has a different purpose, and employees may not see or appreciate the big picture.
Take time this month to recognize your supply management team and share their work with all your employees. When each employee understands the value and importance of supply management to your company’s success, morale can improve, and you may spark creativity that introduces new ways to maximize profits, cut costs and move forward. For example, you may shop around for cheaper rates on shipping or business insurance and brainstorm new advertising or supplier outlets.
This March, commemorate Supply Management Month as a company. This essential aspect of your business forms the backbone of your company and helps it succeed.<