STUDENTS' CORNER - 225

We will start discussing a very popular and inevitable subject: Supply chain and its management. Of course, we will be dealing with the topic in a very simple way that can appeal to even a common man without much academic background.

Let us take supply chain, to begin with. Every word is loaded with heavy meaning and significance.  Sometimes, we use words out of habit or at best with a superficial meaning of the word.

It is popularly said supply chain is a commercial proposition, meaning earning money to make more money continuously, an endless process consuming one’s energy till the last drop of it, one’s money till the last penny, one’s attention till the last breath, so on.  But the question is, can we think of any social activity where consideration for money is not a factor to count with. May be not obviously or even of immediate concern.  Ultimately money stands stiff before us all.  This is to point out that supply chain alone is not commercial activity but almost all activities of man hide this commercial motive. It won’t be false to say man and money cannot be separated.  Let us accept the fact. Even Adanis, Ambanis   work perhaps more than the common man; they too need money not for bread but for bottom line. Some justification.And nothing wrong to work for money.

Now let us go to ‘supply chain’ first and ‘management’ later.

In fact, supply chain management comes under Marketing Logistics. Actually, it is about marketing and the issues businesses face while marketing their products.

 To market, you need a product or an offer of service. And you must find a customer for your products and somebody to take your products to the customer.  All these things are too common to need any explanation.  For you, to make your product in time, you need the necessary raw materials and people to work on them, so on. That is, supply chain must not suffer any break. Supply must not be in want of things and your supplier must supply you your materials. Indeed, your supplier must receive his things from his supplier in turn so that your supplier can be an effective supplier to you.  It goes on like that. So, supply is executed successively by many; that is, a chain of people need to be engaged in the work or task. Supply chain thus refers to the continuous flows of the things from one to another; from raw materials to the finished products and even to the last customer, all things must move smoothly.

 The strength of a chain depends on the continuous links; it means  any weak link that happens to be in the chain, takes away the strength of the total chain. One small weak link will make the rest of the strong chain weak and fragile, and brittle.

If any one individual happens to fail to add his things to the long flow of things it will make the entire supply chain ineffective and inefficient. Taking care of the necessary things in advance so that the flow does not suffer is in essence the supply chain management.

Possibly, nothing new has been said. Only thing is all the narrative is put in simple common sense language because it is said sound common sense forms the basis of sound business concern.

We will see some more of it in our next. April 27.