You may have been in supply chain management for a while or are just getting started? Whatever the case, you’ll run into some common misunderstandings.
The supply chain, like any other industrial area, provides an ideal ground for misconceptions to spread. If you don’t realize it sooner rather than later, you might miss out on some fantastic opportunities that many others could overlook.
Here are five of the most common supply chain misconceptions debunked.
Myth 1 – Supply Chain Management Is Dull
This misconception is widely held among the general public, college students choosing a major, and even corporate executives skilled in spreadsheets. A core reason why so many may believe supply chain management is dull is that they don’t understand it.
Parents might conjure up the idea that when their kid says they want to get into the industry, they want to be a truck driver. Of course, there’s nothing wrong with truck drivers. But many people don’t realize there are loads of exciting and strategic jobs in the supply chain management field.
You could end up working in the manufacturing process or order fulfillment, with all their challenges.
Myth 2 – You Need a Background in Engineering
The majority of supply chain leadership in the past come from engineering. Thus, managers would place high importance on those who follow them and have an engineering degree.
Yet, nowadays, the industry also needs leaders with solid business skills, analytical abilities, and soft skills. So this means people from all walks of life may have a chance to shine in the industry.
Myth 3 – Automation Is Better
In the current climate, automation isn’t always the best solution.
For example, a company may create a product that increases in demand. The issue is that a company then may run into problems because they have over-automated their supply chain.
Unless the company has measures to change its automation processes rapidly, workers can step in. After all, human workers can be flexible and adaptable at a moment’s notice.
Myth 4 – Data Should Inform All Decisions
Integrating both human insight and data-driven technology is the way forward for supply chain management. The supply chain network benefits from data, but humans need to step in when there’s a glitch.
Supply chain management is indeed an art form as it is a science. Of course, we have now entered a data-driven age. We should use data as best we can, but human decisions can be wise and powerful.
Myth 5 – Cutting Costs Is the Main Focus
Cost pressures are real, and companies must manage them constantly. However, the objective isn’t to save expenses; rather, it’s to cut waste and increase efficiency.
In certain cases, increasing expenses makes sense, such as in the supply chain. Spending a little money to boost efficiency might result in more sales. For example, you could learn more and invest in contract supplier management.
Supply Chain Management Myths Busted
So now you know some of the top myths that float around about supply chain management. The industry isn’t all that it seems at face value. And there’s plenty of scope for a rewarding career in the industry, even if you don’t have an engineering background.
So we hope this post answered a few of your questions? If you want to read more, please check out our blog.