According to a report released by McKinsey in 2018, “Organizations that adopt digital supply chains boost annual earnings by 3.2 percent on average.” This represents the largest increase in digitization of any business function. By coupling the right technology with seasoned logistics expertise, retailers are unlocking significant new values from their supply chains and are deriving profitable results.
What is Retail and Supply Chain Management?
Simply put, Supply Chain Management makes sure all the products you use in a day – including those you consume, wear or communicate with – reach you at the right time, condition and at the right price. It mainly includes a comprehensive network of different parties concerned in getting goods from the supplier to the customer.
Importance of Retail and Supply Chain Management
With the ever-increasing competition in the retail industry, customers are now demanding more services. Therefore retailers offer a variety of products at lower rates and increased levels of services in their supply chain to achieve a competing edge.
A few of the major advantages of a solid supply chain management are listed below:
Statistics reflecting growth in the Supply Chain Management
Retailers are the dominant partners in most supply systems. They are the active controllers building supply in awareness of, and response to consumer interest.
According to a report published by Kees Jacobs, Vice President, Global Consumer Products and Retail Sector at Capgemini: “The basics of supply and demand are still winning factors. Customers still consider the variety/range of stock available (34%) and availability of an outlet’s location (21%) as the main factors for choosing to shop with one retailer over another (when the price is not a factor).”
Notably, the expenses that fall under the SCM (Supply Chain Management) are receiving strong attention from the top of the organizations, according to a report released on Oct. 6, 2019, by the Retail Industry Leaders Association (RILA) and the Auburn University Supply Chain Management Program.
The reports also state, “SCM executives are now finding themselves in the spotlight and must perform their brand of magic to save the show. The role of supply chain management (SCM) within their organizations is to better manage inventory, control costs and maintain first-rate customer service.”
The Ever-Increasing Demand
“The situation is only intensifying. In the fourth division, and in 2017 as a whole, U.S. online retail grew more active than it has since 2011. E-commerce now serves 13% of total retail sales in 2017 and 49% of the growth. No great can retailers view e-commerce as a side gig that may or may not pan out. It is the first future growth engine that must be learned to remain contentious and relevant”, says the 8th Annual State of the Retail Supply Chain (SRSC) Report.
As cited by Mr.Vivekanand, who is a Country Manager in India & SAARC, Greyorange, “The logistics and supply chain management function have been experiencing an odd transformation in the last few years, fed by innovations in IT and digitization. Government actions like Make in India and Digital India are implementing thrust towards the logistics and supply chain management function. According to a research by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the logistics market in India is anticipated to grow to the US $307 billion by the year 2020, marking a CAGR of 16 percent on an average.”
Supply Chain Management as a Career Prospect
As the above statistics reflect, an increase in globalization of businesses and supply network have made Supply Chain Management one of the trending jobs in the market with an impressive salary growth in the future.
A bright future is certain for those with the right attitude and the right degree; someone equipped with comprehensive knowledge of retail and supply chain management is a strong candidate in the job market.
A PGDM in Supply Chain Management will develop certain skills, that are considered essential for supply chain professionals:
What are the possible job opportunities in Supply Chain Management?
Under Supply and Chain Management sector, you could see yourself as:
Supply Chain Analyst
Retail Store Manager
Inventory Control Specialist
Warehouse Operation Manager
The Final Word
Today, companies are developing global operational networks to meet challenges and take advantage of the opportunities presented to them by economic globalization. These companies need professionals with expertise in the field of logistics and operations management. With the growing number of jobs in this field, those with the right skills can be extremely valuable and in demand.