The Language of Business: Supply Chain Management
We have all heard the term Supply Chain Management in the past several years. So, what exactly is it?
Supply Chain Management, in its simplest form, is the management of the flow of goods and services. This can include everything from sourcing raw materials to the process of transforming them into a finished good. There are many elements that go into the finished goods and, suddenly, it seems so many are unavailable, making it difficult, to outright impossible, to finish a product. The shortages we all experience in so many areas of our lives today are the result of a supply chain that is not working as it once did.
Some recent personal examples include trying to reorder promotional tumblers only to be told they are out of stock and not sure if they will be available anytime soon. My favorite brand of paper towels with colorful patterns on them have been unavailable for several years now, likely a relic of the past. Construction materials such as certain types of wood, colors for mortar, and roofing supplies all seem to be back-ordered for more than a year now. And even certain types of foods that were once abundant are just gone. When you ask why, you often just hear: supply chain issues.
As you appraise your business and its vulnerability to supply chain issues, make sure you understand the flow of your products or services from beginning to end. And do not dismiss the importance of labor in that assessment. The shortage of labor to make the process flow move smoothly is also a supply chain issue. This is a risk every business needs to address including from the sole proprietor to the large corporation. None of us is immune.
As in dog sports which have a beginning with a flow of events to the end of the activity, our businesses also experience that flow, that process, that supply chain management. Make this element a part of your periodic business review. Look out your window of opportunity and understand your own supply chain management to better run your business. Your future depends upon it.
Be well.
