Vault Career Guide to Supply Chain Management
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Vault Career Guide to Supply Chain Management
Supply chain management is the coordination of efforts of a network of vendors that provides materials and components for a company's products. Supply chain management primarily takes place in manufacturing companies such as Chrysler, Sony, and Boeing. This new Vault guide gives you the inside scoop on supply chain career paths, the hiring process, and keys to success.

Pages: 72
Price: 19.95



Read an excerpt from the Vault Career Guide to Supply Chain Management



Even though it seems trite, teamwork is the key to success. Supply chain managers should view themselves as customer service representatives for the manufacturing operations of the plant. Sitting at one's desk and just executing orders is the work of a mediocre supply chain manager. High-performance supply chain managers go beyond that by practicing internal (inside the company) teamwork as well as external (outside the company) teamwork.

It is critical for a supply chain manager to build rapport with employees. A supply chain manager relies on the receiving department to promptly process deliveries, so urgent parts can be sent to the manufacturing floor within minutes rather than hours. Setting up a "hot" board in the receiving area, where supply chain managers can list urgent parts, can help, but building a close relationship with the receiving department employees (not just the supervisor) is a lot more valuable. For parts that need to be inspected for quality before they are sent to the floor, the receiving inspection department is involved, so a supply chain manager needs to build a good relationship with this department as well. A mediocre supply chain manager considers their job done when the parts are delivered, but a conscientious manager is not satisfied until the parts are on the manufacturing floor. The material handlers who move the parts around the factory should be made into allies as well. If you have a good relationship with them, they will go out of their way to help you without feeling that you owe them something in return.

Production supervisors are in charge of the manufacturing and assembly lines, as well as the people who work on the lines. In this sense, they occupy a different place in the manufacturing chain-production supervisors rely on supply chain managers, whereas supply chain managers rely on the other internal departments (receiving, inspection, material handlers) discussed above. Open communication is key to successful relations with the production group. Letting them know why the parts are late and when they will arrive helps them better understand a supply chain manager's job. Spend time on the production floor. Know the parts you manage beyond just the part number, supplier, and lead time. Talk to the assemblers, understand how the parts you purchase are assembled, learn what challenges they face, and try to see things from your customer's perspective (internal and external customers).

A supply chain manager should build alliances with suppliers. The more information a supply chain manager shares with a supplier, the higher the likelihood that the supplier will feel that they are valued by the customer (your company). If a supplier feels he has a stake in the success of your company, he will be a lot more motivated to help achieve that success. Ideally, suppliers will be rewarded if the company succeeds. One tactic that can help motivate suppliers is to suggest that there will be consolidation in the coming years, i.e. work will be transferred from the lower-performing suppliers to the high-performing suppliers, resulting in the same pie being split into larger pieces. But a supply chain manager has to be aware of the line between the benefits of reducing suppliers and the risk of putting all of one's eggs in one basket. The companies chosen as key suppliers must be evaluated beyond their on-time delivery and quality. For example, a supplier could have 100% on-time delivery and a superior-quality product, but if 50% of their business is serving an industry that is rapidly declining, there is a high chance that this company may fold. Or a similarly satisfactory supplier may be run by one person. The risk of something happening to that one person needs to be seriously considered.

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