SCM- An emerging vertical

“Physical movement of goods” has become history now in the context of supply chain management.

With emerging strategic approaches, companies are now focusing on much more than just physical movement of goods. Right from selecting a supplier till the goods or services reaches the end user, companies are more focusing on improving value chain by doing a market research of the best in market and strategically applying it in order to increase their bottom line. Flow of information on both directions in SCM value chain has become the prime focus whether it is manufacturing or a service industry.

Companies are not considering their suppliers as their vendors but are considering as their partners who are equally contributing in meeting their top line in time and thus directly impacting their bottom line. Many manufacturing companies are preferring to have their supplier partners in the vicinity of their manufacturing plant in order to use JIT approach thus reducing the inventory holding cost and thus delivering the end product to customer in right time. The focus is more on Vendor Managed Inventory.

Competition, world class manufacturing units, latest technologies and world class infrastructure have given many SSI (Small Scale Industries) and MSI(Middle Scale Industries) to emerge as best supplier partners and have given them scope to increase their capacity keeping the quality unchanged and deliver the goods and services to their clients at right time and at best possible COO (Cost of Ownership).