The exporting process is rarely observed through the scope of a finished product. It’s the commodity items—raw materials—that dominate the supply chain. Metals, minerals, grains, woods, textiles, synthetics, oils, sugars, livestock, plants… They’re all individual players until a manufacturer makes them a part of a team, combining separate commodities with others to make something new. Something we as consumers can drive to the store and pick up.
But who is it that makes sure the right amount of each material arrives at its designated manufacturing plant with efficiency?
Supply chain managers. That’s who. There’s so much data that requires constant monitoring when it comes to the supply chain. After all, it determines when, where, and how a product will be made; and therefore, when a company can expect to start earning profit. By utilizing the knowledge of supply chain managers, businesses everywhere can move forward instead of falling behind.
Welcome back to “Moving Parts,” a series from the NDTO where we discuss the many individuals and organizations that make international trade possible. For this month’s feature, we’ll dive into the crucial work done by supply chain managers to keep our parts moving!
Supply Chain Managers: What They Do
The flow of goods would look more like a hurricane than a steady current without supply chain managers there to keep it pushing in the right direction. They do plenty in terms of recordkeeping and analysis, but their involvement goes deeper than these baseline responsibilities.
Here’s more of what they do:
- Oversee material imports, exports, and the manufacturing process.
If a company is exporting commodity items, supply chain managers ensure they’re being sent to the right production plants and factories in a timely manner. If they’re importing commodities for manufacturing, supply chain managers are keeping track of the order, quantities, and shipments to ensure production stays on schedule.
- Track material totals for factory production and warehouse availability.
Ensuring factories have everything they need in the correct numbers to meet the demand of consumers is crucial. Supply chain managers work to acquire and measure the needs for a seamless production process.
- Communicate with global partners.
Acquiring these materials means constant contact with partners and sources across the world—initiating shipment deals being of highest importance.
- Source materials through procurement managers.
Before deals can be closed, supply chain managers work alongside procurement managers to find dependable companies to source their parts from. Doing so creates a network of suppliers that work in tandem to maximize profit. The more product a business sells, the more materials they’ll need, and the more money these suppliers make. Everyone’s happy!
- Negotiate contracts.
Supply chain managers must bring their negotiating skills to the table in order to close contracts beneficial to all parties involved in the movement of commodities and products.
- Forecast product demand and supply chain obstacles.
Supply chain managers are expected to look ahead and predict supply chain trends so their businesses can avoid setbacks. Keeping up with consumer demand is impossible if delays continually shut down operations.
Common Struggles
The supply chain is about as unpredictable as it gets. Things can, and often do, go wrong, which is precisely why it’s a good idea to have someone on board who can navigate these issues.
Here are a few of the issues supply chain managers may deal with on a regular basis:2
- Lack of Visibility: The inability to track the movement of materials in real-time, without digitalized delays or scarce communication.
- Material Shortages: High demand slowing the acquisition of rare or difficult resources.
- Demand Volatility: The unpredictable rising and falling of consumer demand, resulting in product shortages and surpluses.
- Rising Prices: Operational price hikes hindering the profitability of a product.
- Cybersecurity Risks: Cyberattacks targeting the supply chain at multiple points and delaying the delivery of commodities and goods.
- Labor Shortages: A decrease in industry laborers and lack of interest in newer generations.
- Congestion and Bottlenecks: Inefficient practices lead to congested ports and slower departure times.
These hurdles have been extra high in the past five years. With the pandemic and multiple conflicts raging heavily in varying regions, imports and exports have moved at an inconsistent pace, causing dramatic fluctuations in public supply and demand. It’s exceptionally helpful to have a supply chain manager on board to deal with these problems as they arise.
North Dakota Resources
Impact Dakota’s Supply Chain Optimization and Intelligence Network (SCOIN) is basically a supply chain manager that’s been spread across multiple participating ND companies. Instead of your business hiring an individual, you can utilize this cost-free program that places value on strengthening our state’s supply chain by connecting manufacturers who need one another’s materials.3 There’s really nothing better than empowering fellow North Dakotans through collaboration.
And of course, the NDTO would be more than happy to discuss supply chain optimization as well. Give us a call if you’re curious!
1What Does a Supply Chain Manager Do? (And How to Become One) | Coursera
27 Common Supply Chain Problems and How to Resolve Them – Revolutionized
3Impact Dakota – Supply Chain Optimization and Intelligence Network