Managing Global Supply Chains – Striking a Strategic Balance

Global supply chains are facing difficult times as the marketplace shifts to a more global environment. Companies want to enter new markets with lower costs and better speed. However, many executives are struggling to meet goals in the face of new challenges.


Factors such as higher transportation and energy costs are enough to throw a wrench into a company’s supply chain. Building a strong strategic plan can assist executives in achieving their goals.


Evaluate Higher Transportation Costs

It’s no surprise that energy and transportation costs have experienced a sharp increase. Companies are scrambling to balance these costs while staying competitive in current market conditions. Striking the right balance can add up to increased efficiency and profit gains.


Manage Product Lead Time

Although producing oversees offers less expensive labor, this may also result in longer lead time. This slows down the process of bringing a new product to market. These factors need to be carefully considered when planning production.


Review Exchange Rates and Tariffs

Tariff and exchange rate challenges are introduced when a company manufactures overseas. Senior managers should carefully evaluate these components and identify opportunities to increase efficiencies.


Manage Complex Products Closely

Consumers are demanding more sophisticated products. Companies are working creatively to meet these needs, but sometimes production gets left in a lurch. Producing more complex products can slow down production, leaving the supply chain out of balance.

The solution to this issue is forming strong communication channels between marketing and operations. Working closely will provide a synergy between launching a new product and meeting production demands.


The Challenge of Reducing Costs

Senior mangers are always evaluating strategies to increase efficiencies and lower costs. Managing global supply chains in this demanding market requires strategic oversight. Leaders from all business units need to come together to create strategic goals that are measurable and realistic. A systematic way to measure these goals should be established so results can be tracked.


Evaluating Ways to Get Products to Market Quicker

Once a company discovers an innovative product, marketing and sales push hard to bring the item to market. Operations is the business unit that can best provide knowledge on capacity to produce a product while maintaining a high level of customer service. If production is slammed with orders, angry customers will surface, creating a lasting affect on a business’ reputation.


A strategic plan for getting products to market in the most efficient way should be created. Senior managers should meet regularly to strike a balance between bringing a product to market while persevering production and customer service. Discovering this balance will positively affect the global supply chain.


Find Communication Efficiencies in Manufacturing

Companies serving a global marketplace may have manufacturing facilities spread out all over the world. The communication flow across such a large area may become challenging for some businesses. This can be addressed by creating formal procedures for sharing information across all locations. The results of making this change are improved consistency and performance.


Examine the Benefits of Centralization

Many companies are moving away from local management to a centralized model. The manufacturing may be accomplished overseas, while the home office is charged will managing those tasks.


Retaining Employees in a Global Marketplace

As your company goes abroad, attracting and retaining talented employees may be challenging. Spend time and resources on creating an attractive work environment for employees. The time and effort invested initially will payoff with a decreased turnover ratio.


Managing Compatibility Issues

Managing technical infrastructure can be challenging enough in the local market. But once you introduce vendors from around the world, the issue becomes more complex.

Spend time working with vendors to ensure technology works seamlessly across all channels. Front-loading your investment will minimize issues down the road. This will also improve your efficiency and profit potential.


Acknowledge the Environmental Effect on the Global Supply Chain

Consumers are becoming more aware of their carbon footprint. Companies are facing the challenge of finding a balance between being environmentally responsible and maintaining profitability. Working with leaders in your company to discover a harmonious solution will impact your business positively in the global marketplace. You’ll benefit from an environmentally conscious image, while preserving profits.


Forming a Partnership between Operations and Marketing

Executives from marketing and operations need to meet regularly to review goals. They need to form a partnership to improve the global supply chain process. This will enable a quicker response to change when working to bring products to market.


Most company executives agree that global supply chains have room for improvement. While facing economic changes and rising fuel costs, there will be opportunities to review processes and maximize efficiencies. Investing time and resources into maximizing the efficiency will preserve and grow your profits.


Samer El Bizri is CEO of the Zeconomy, Inc. With Zeconomy Bizri provides business-to-business online payment services designed to access liquidity from anywhere in supply chain. Bizri is a successful businessman also and he helps in executive management and cross-functional team leadership.
Also read here: Using Information Technology to Revolutionize Your Supply Chain

Enterprise Software Benefits That Can Turn a Company Around

We’ve all heard success stories about enterprise software – 30% increase in profits, products to market five times faster, project management overhead cut in half – but how, exactly, do those companies accomplish that? Here are three of the most important elements.


Sorting out flaws in organizational structure and processes:


In some companies it’s not always clear sometimes who is who’s boss. Some (usually stressed to the max) employees are getting orders from everyone and their brother. Approval hierarchies also tend to be unclear. Instead of having one person approve what you do and then send it on the next person up the line, everyone’s jumping in with their two cents worth all at the same time.


You may not realize how much confusion this sort of thing generates, and how much work doesn’t get done because of it, but it will be more than clear when you implement the task management and workflow solutions features of your enterprise software. You will see, for example, that some people have more to do than one person could possibly handle. They are trying to comply with so many viewpoints and orders at the same time, it’s almost impossible to complete something. Implementing an enterprise software solution can help bring that to light, and sort it out.


Giving executives the chance to see what’s really going on:


Have you ever felt powerless as an executive? You know there’s something wrong, but you just can’t get to the bottom of it. Largely, you’re depending on middle management for information. But acting on their information just isn’t resolving the problems.


Enterprise software can help you find out what’s really going on. You can look at what each person is doing on a daily basis, you can see what orders are being given and whether or not those orders align with company policy and strategy, and you can find bottlenecks and unresolved problems that are keeping people from getting their job done efficiently and effectively.


Middle management is necessary, no doubt about it. But every company has an assembly line, no matter how white collar the activity, and the people on the floor generally know their job better and have a better handle on the problems and solutions related to their job than the guys above them. Enterprise software offers executives the opportunity to easily monitor what’s going on right down to the bottom of the organization – and they can use that information to make things more efficient, get things done faster, and create a smooth-running, frictionless organization.


Finding a deadline is at risk before it’s too late to do something about it:


Billions of dollars are lost every year because deadlines aren’t met. Executives don’t usually have all the gory details on every single thing that has to be done in order to complete a project. By the time they find out a project is behind, it’s often too late to do something about it.


Enterprise software changes all that. The project and task management tools and workflow solutions feature show an executive exactly what’s going on in the minutest detail. The possibility of not meeting a deadline can be seen so far in advance that a resolution can actually be implemented in time to turn it around. You can see exactly what’s going on, and do something about it.


Ever wondered how people using enterprise software increase their profit margin so dramatically? Meeting deadlines is a big factor.


Enterprise software with features and functionality like project management tools, task management and work flow solutions can help bring about what you may think of now as miracles. Time to check it out.


Samer El Bizri is a successful businessman and CEO of the Zeconomy, Inc based in New York which provides help in supply chain management and enterprise software services. The company’s business-to-business online payment services are automated and secured, enabling businesses to trade liquidity for price discounts far beyond their direct customers and suppliers without increasing credit risk.

Also read here: Create Competitive Advantages with Enterprise Software by Samer El Bizri

Ways by Samer El Bizri to Stop Social Loafing In Cross-Functional Teams

People often take less accountability for individual and team performance when doing work as part of a group. This tendency, called “social loafing”, is well documented. In these cases, some of us may take advantage of a situation in which it’s harder to pinpoint responsibility-a situation created by the fact that many people have a role in the team’s performance.


This low degree of “identifiability”-when our individual performance is not clearly observable-allows us to more easily “hide” and avoid taking accountability for our role in the team’s poor performance. However, when others can see our individual performance and our contribution is clearly linked to us, accountability and performance levels both increase.


One example of the impact of identifiability on accountability and performance comes from a study that looked at the times of the members of the Ohio State Swim Team in a competitive event. Four teams of four men were formed by matching for ability and speed of each swimmer’s time for 100-meter lap.


Two of the four teams were randomly assigned to the “high identifiable” group, whose lap times would be announced aloud to them and to anyone else within hearing. The other two teams were assigned to the “low identifiable” group, whose lap times would not be announced or revealed even if the swimmer asked for the information.


The study found that when swimmers’ scores were not made public, they exerted less effort and swam both the individual and relay events more slowly. When individual scores were made public the swimmers exerted more effort and swam faster in both events.


It appears that the stakes are higher when we know our action will be attributable to us and that we have to justify ourselves and our actions to others. Knowing this, we seek approval and respect and try to maintain our own self-image-we try harder.


Social loafing is a common problem in cross-functional teams consisting of numerous leaders across departments or regions. Among these groups, it isn’t always clear who is in charge or who reports to whom. Team members may view the work as someone else’s responsibility, so they avoid taking ownership.


In these situations, it’s the leader’s job to monitor performance and motivate the team to excel. Here are three things leaders can do to minimize “social loafing” and enhance individual accountability within cross-functional teams.


Use Meaningful Metrics That Connect Individual Contributions to Team Goals


If the team’s ultimate goal is to increase sales, it’s easy to evaluate the sales managers based on monthly revenue. It may not be as easy to evaluate the marketing manager’s performance, but it’s just as important. Consider what metrics you can use to evaluate each role. For a marketing manager, it may be the number of qualified sales leads rather than sales revenue.


Ensure Transparency of Individual Tasks and Goals


Within a cross functional team, a lack of clarity about who will work on a specific task is not uncommon. This can be avoided by taking the time to develop actions plans and making them visible through shared documents or project management software, such as Basecamp.


When the tasks are clearly defined and assigned to a specific person with a set deadline, that person will have no excuse for not completing his or her work on time. In addition, the realization that others are aware of the work they are responsible for will also increase their level of engagement and accountability.


Track Progress On Assignments


Don’t simply assign a task and walk away. Establish key milestones with estimated completion dates, and use those milestones as opportunities to check in with individuals.


Take the time to discuss their progress and identify any roadblocks. If someone is falling behind on a particular task, find out why and provide coaching when appropriate.


These practical actions not only reinforce an individual’s role in making the team a success but also make their role and contribution transparent to others. This results in a high degree of identifiablity, which enhances overall team performance.


Samer El Bizri is a successful businessman who provides the help in executive management and cross-functional team leadership. Mr. Bizri works with teams in organisations who want to be more effective and achieve sustained success. He writes about Supply chain management and other related topics.

Visit his blog here:

How to Build an Effective and Efficient Team from Scratch?

If you’re in a managerial or team leading role, then it may get quite difficult to manage a group of people who are extremely opposite for each other, when it comes to thoughts, ideas, and conceptualization.


Finding mid-way resolutions and resolving on-going conflicts isn’t an easy task for everyone, but all of this can get streamlined by applying right approach to make your team members come together and work as an army.


If you’re planning to build a strong team that can help your achieve your business goals at a faster pace, then read the following tips suggested by Samer El Bizri about how to build an effective and efficient team right from scratch:


1.    Establishing Leadership


If you don’t think that you can take decision correctly, then it is sad to reveal that you must not lead a team ever. Compelling employees about your decisions, making them accept them happily and ensuring their constant contribution to make your vision turn to reality is the first step towards making a good team.


A lot of the team building companies developing the right kind of leadership skills before you start heading a team to ensure that they work effectively even when you’re away.


2. Maintain Strong Relationships With Employees


Picking your most favorite employee, connecting with him/her daily, and asking about project progress from a particular individual will never help you win the game. Treat everyone equally and maintain healthy relations with each member of the team to build trust and confidence amongst your team members.


If you wish to organize team building activities UAE at your office location, then study a few websites to know about the one that matches your requirements and help your team to maintain healthy relations with cross-functional teams, and members amongst themselves.


3. Fostering Teamwork and Goal Settlement


Never be a bossy leader. It is one of the most popular tips that you will find in popular business management books and leadership reports. The solution to this problem is fostering teamwork and appreciating individual contribution during success meets. No team can achieve the defined goals, if the members do not take active part in the tasks being performed or plan being made.


Encourage your team to share information, expert tips, suggestions and concerns, and other crucial matters amongst themselves to build trust and reliability. Next step is to plan out a detailed goal sheet for your team to help them stay productive towards common business goals while managing their individual responsibilities.


Samer El Bizri is an Executive Officer at zEconomy, Inc. and a successful businessman who provides the help in executive management and cross-functional team leadership. Mr. Bizri works with teams in organisations who want to be more effective and achieve sustained success.

To read more, please visit here:

Steps to a Better Execution Management System by Samer El Bizri

The present-day business scenario is highly competitive and volatile. Most of the time business managers have numerous plans to execute and multiple strategies to implement. While plans are made rather spontaneously, the time taken to turn them into fruitful action turns out to be quite long. And this problem arises from the absence of what is known as an Execution Management System. This, though a common term in the field of trading and stock market, is as much applicable and relevant for the entire business scenario. The system ensures that your strategies are put into action and that the results are estimated.


When you implement an execution management system, there are certain things you need to do simultaneously. Taking the following steps explained by Samer El Bizri will improve the efficacy of the Execution Management System.


  • To begin with, it is necessary that you make short-term plans instead of long-term ones. Meet up on a quarterly basis; decide on the next set of actions and also the way to go about them. When you meet once in a year, the discussions get longer and the strategies more complicated. Consequently, sound executive management automatically becomes least feasible. Short-term plans, on the other hand, are better executed and the entire scenario looks better at the end of the year.
  • Cost reduction exercises are common in every enterprise or market. But more often than not, costs reductions lead to negative impacts on the business model. This is not desirable. So, it is necessary that you review your plan of cost reduction before implementing it. It is found that cost restructuring instead of cost reduction actually helps in better execution of business strategies.
  • When it comes to strategizing and executing of these strategies, business enterprises consider certain Key Performance Indicators, also known as KPIs. But the KPIs determined long back lose significance over the time and hence, bring no real value for the organization. So, the best thing to do is to select indicators that are relevant and matter the most. These can be related to cash position, exposure to short or long-term risks and access to capital.
  • It is not enough to define an objective but you need to implement it. People in the organization have to take ownership and work towards achieving the pre-determined goals. Let people debate, raise issues, suggest modifications and only then accept the objective. Even if this means investing few weeks of time, never stop yourself as the end result will be satisfactory.
  • It is easy to implement strategies and execute them when things go as planned. But it is extremely difficult to even think rationally in times of crisis. Performance coaching, quite popular these days, helps managers keep their calm and stay focused in difficult times. It ensures that plans get executed even with the obstacles.


Samer El Bizri is CEO of Zeconomy, Inc and a financial business planner expert. He shares his knowledge about fixed capital, working capital and financial aspects in variety of platforms.

Also read here: Executive Management – Securing Your Business Success

Print Management Solutions

Print Management Solutions Advantages by Samer El Bizri

Nowadays by utilizing the application of print management solutions, it is feasible for firms to manage jobs of printing, print quotes and logs and auditing the print. It might be imperative in few cases for the individual printing any particular documents or document to enter a pin number and the user name since print documents very often may be related with shared numbers or many kinds of codes.


The management of print server feature has contributed an extra protection of security and turned it simpler to utilize the printer itself. Print management software support also workgroup and domain network architecture. As companies are utilizing now printers to make all required documentation, the quantity of printers utilized, ink which is required for printing and quantity of pages which are printed daily have contributed to a high cost to which has become an daily occurrence. The documents should be printed and apart from that in various cases, are made at large volume. It is particularly true for firms which print distributed materials regularly. This is where print management solutions have a big role to play. With the help of software in respect of print management, firms are putting together many tasks and permitting them to be managed with the software when cutting down simultaneously on the actual cost of printing the documents. It permits the firms to generate profits from the distributed item the scope to earn more money and those are doing the in-house circulation or the information which are being circulated at free of cost is being able to save a considerable sum of money every year.


By utilizing print management, firms would be capable also to better manage the quantity of printing which keep up and at the same time takes place with it. It assists to make a disturbance free atmosphere and encourage entire productivity in a manner which is efficient and uniform truly. This saving of cost contributes also to turn it into to a great option. No firm is too little to think of utilizing print management software. Whatever be its size, the conveniences would remain as it is all along. There are various print management solutions companies which are available in the market place. You may get the information by searching the World Wide Web. There are ample websites available on the World Wide Web giving contact details of the companies that can provide solutions for print management.


Samer El Bizri is the President of Codehost, Inc. which specializes in Business Management and Competitive Analysis and Integrated Print Management solutions for copiers, printers and MFPs. With Codehost, Inc an innovative software company Samer El Bizri brings value added solutions to businesses and OEMs worldwide from opening the door to Linux and UNIX environments for the world’s largest printer and copier manufacturers to the introduction of the world’s most efficient to digital solutions.
Also read here: Finding The Best Supply Chain Management Services

Why Supply Chain Management System?

Improvised supply chain gives a business competitive advantage in the market and it helps the business to mitigate risks related with acquiring raw materials and offering pinpointed products and/or services. By properly implementing supply chain management systems, a business can effectively streamline its operational objectives, reduce waste, overhead costs and tackle the challenging issue of delays. A properly devised supply chain management can effectively and holistically maintain and manage the entire process, and improve a business to reach higher level of getting increased return on investment.


Quality assurance

When supply chain management is strictly implemented, it can save process automation. It can align the objective of a company with quality of service and its offerings.

A thoughtfully devised supply chain management system can incorporate quality techniques, such as quality management systems, to enhance the operational objectives thereby improving the overall range of services.


Inventory buffers

Customer spending in almost every type of business is volatile, and extremely unpredictable. This requires companies to manage and maintain their standalone inventory in such a way that it can minimize holding costs while offering enough flexibility to cater to the changing customer needs.


Risk mitigation

Managing the risk is the most important duty of a business owner and supply chain management is the most vital way to identify the crucial areas where focus important. Supply chain management assist organizations with organizational goals. Without properly-devised and fully-functional supply chain management system; you always risk your business of being exposed to increased liabilities and legal bindings.


A supply chain, literally, is the network of a company with its business partners that it uses to move a product from one stage of development to the other. Different aspects of design and development of pinpointed strategy take place when it comes to supply chain management. Some of the most important aspects of a full-fledged and wholly-improved supply chain management system include the processing of goods, managing the good in specialized steps, maintaining the inventory in systematic manner etc.


The supply chain management system is gaining a wide limelight because of a range of factors. Companies today need highly effective means of channelizing systems and for that work to be worked out, it is very important that you take the help of supply chain management system.

A properly-devised supply chain management system is beneficial for the overall good of a company.


Samer El Bizri is the CEO of the Zeconomy, Inc. which provides the help in supply chain management and enterprise software. With Zeconomy, Inc Samer El Bizri provides business-to-business online payment services designed to access liquidity from anywhere in supply chain. The company’s business-to-business online payment services are automated and secured, enabling businesses to trade liquidity for price discounts far beyond their direct customers and suppliers without increasing credit risk.

To read more, please visit here:

Supply Chain Management

Supply Chain Management: Focal Factors To Consider and Integrate

In the backdrop of global economic sluggishness, fluctuating fuel prices, increasing concerns over safety and subsequent social regulations, escalating expectations of clients, effects of globalization, streamlined technology, ever-changing transportation scenario, rising transportation costs, and declining capacity, shipping industry is exasperated managing their impacts. Managers handling freight shipping services nationally and internationally are faced with an array of challenges and opportunities that dramatically contrast with those of a few years ago.


The plights that hover over the transportation management industry have been aggravated by the factors that include growing shortage of truckers and falling transportation capacity. In such circumstances, shippers and core carriers find adapting to the changing logistics scenario to be difficult, resulting in operational shortcomings and missed opportunities. Spectacular among the chart of missed opportunities is completely leveraging the logistics management system as a decisive strategic part within the supply chain.


Logistics management system has a vital role in building flawless supply chain management system, which consists of suppliers, manufacturers, distributors and customers. This system plays an intriguing role in fulfilling the basic commitment of the supply chain management by moving inbound shipments from point of supply or origin to point of manufacturing units, shifting stocks among different units and distribution points, and then shipping the finished items to the customers. The benefits that should come from good shipping operations that include supply, production, and customer locations can never be realized without the integration of a good shipping planning and implementation. Getting stocks piled and available for delivery cannot be enough unless they are transported to the customer locations cost-effectively and in the face of needs. To make this supply chain a success, there are a few factors that need to be focused on. Those factors include Planning, Lane Operations, Carrier Choice, and Loading and Unloading Operation.


Planning: Freight shipping strategists need to first focus on the mode of transportation issue. They should have to decide which mode among their lots of varieties would be appropriate to keep up the flow of supply chain. Their plans should take into account of the supply chain flow issue, network design, tying up with best carriers only to enhance operational quality, ways to fulfill service commitments, and installing of ingenious and updated technologies. If they can ensure that they will have the bargaining power about freight rates with carriers, they will definitely be on an advantage position. Competitive freight rates if offered can attract more clients. But, sole freight rating cannot be enough to counter with best quality shipping services, which should always be of paramount consideration.


Lane Operations: Freight shipping strategists should focus on creating well-networked transportation design to streamline and coordinate product movement. This movement design should be in keeping with day-to-day operational freight shipping. Strategists should ensure that these functions can be performed cost-effectively. At the same time, value-added services need to be ensured. All these can take shape when lane operating planning prioritizes on freight consolidation which integrates supply chain components like vehicle, carriers, etc. Identifying the less dense lanes across all service regions for a logistics company is very important to streamline the freight shipping services.


Carrier Choice: The choice of carrier is very crucial for keeping up supply chain flow. Rail, air, ocean and truck are the ways to transport goods to defined locations. Shipping companies should have ties with the carrier companies that have all these transportation facilities. It will help them transport the products of their clients via the choice of the most suitable carrier. While tying with the carrier company, the strategists of the shipping company should ensure that they will have the bargaining power about the freight rates with the carrier companies. Bargaining power will give them confidence to give their clients discounts. In addition to it, a supply chain management system can go on swimmingly if shipping company can ensure that they have tied up with those carrier companies who have normal, emergency, faster transportation and delivery capabilities via different modes of their transports.


Loading & Unloading Operation: Planners should take the loading, routing, scheduling, and unloading issues very seriously. If they can guarantee that they have a definite, comprehensive and convenient dock planning, they will certainly be able to ensure that their transportation support will be best-suited for the sustenance of supply chain management service.


Supply chain management planners should go for only long-term shipping strategies. They need to look whether their plans are effective, comprehensive, and convenient. When quality service is a-must for keeping up the supply chain flow, cost-effective service is compulsory for customer satisfaction. In a word, both operational issues and freight shipping expenses are very crucial for this service.


Samer El Bizri is CEO of the Zeconomy, Inc. based in New York which provides help in supply chain management and enterprise software. Zeconomy Provides business-to-business online payment services designed to access liquidity from anywhere in supply chain.
To read more, please visit here:

supply chain management

Optimize The Speed of Your Business With SCM Software Solution

Companies that are preparing to implement logistics and supply chain management software solutions for the first time may be a little curious about how these types of software tools help business operations. However, CIOs and the others in leadership often understand the rush towards supply chain management (SCM) and other types of enterprise planning tools. Global supply chain management is often a key part of innovating in the modern business world.


Supply chain management software solution help a lot for businesses in every sort of industry. SCM tools can automate much of the physical supply chain process, and provide analytics and business intelligence for growth. These tools help human leadership team to fine-tune business operations and make them as efficient and effective as possible, for a competitive advantage in a particular industry.


Utilizing a logistics technology solution can reduce shipment costs by offering increased visibility into multi-modal shipment options available. Without adequate visibility into logistics operations, many businesses may not realize that shipping by sea may be a much more cost-effective option for a particular shipment than shipping by air. Using technology to evaluate model options can greatly reduce a company’s overall shipping costs.


SCM software helps to keep your business organized and maintain a relationship with the merchants, suppliers, and customers. It takes care of the entire transaction process, product supply, shipping, product planning, scheduling, etc. in the entire supply chain management process. It improves your customer service as it gives better shipping experience. The customers can track their products and the supplier can do so as well. Hence the status is updated at both the ends and if there is any issue, action can be taken immediately. The real-time visibility and updates make it simpler and easier for you to quickly tackle the issue offering a very good experience to the customers.


Most businesses of a larger size have enormous volumes of materials and supplies flowing around multi-location business footprints, coming and going in dizzying and elaborate ways. When SCM complexity is too difficult to assess through spreadsheets or documents, supply chain management software helps to maintain order and organize these processes. This way, decision makers can see at a glance what is being sent out for delivery, where it is going, and what is coming in. In a nutshell, SCM software breaks down a massive amount of supply shipments into something that company leaders can pursue in detail.


Samer El Bizri is CEO of the Zeconomy, Inc. that based in New York who provides help in supply chain management and enterprise software. The company’s business-to-business online payment services are automated and secured, enable businesses to trade liquidity for price discounts far beyond their direct customers and suppliers without increasing credit risk.
Also read here: Managing Risks in Implementing Enterprise Software

Optimizing Supply Chain Management in Small and Medium Scale Enterprises

We have vast numbers of Small and Medium Enterprises (SME) in any given economy but their impact in national economic development is relatively low due to low operational efficiency. Implementation of Supply Chain Management system in SME will reduce operational cost and increase efficiency.


Implementing an effective Supply Chain Management system in SME has an important role to play in order to ensure economy growth and development. The bottlenecks experienced by SME needs to be identified and eliminated in order to enable them to develop. Supply Chain Management is the process of integrating all the components of production and supply processes. It is the management of the flow of goods and services as required by the final consumer.


Application of the below models will help in eliminating the challenges facing efficiency and effectiveness of a Supply Chain Management system in SME. Firstly, the Product and Consumer integration while the Second, Production and Supply integration.


The Product and Consumer integration: it describes how best the activities involved in delivery of the right quantity of products, with the required specification at the prescribed time gets to the consumer in the right condition. Here is how to get started.


Firstly, for a start-up or existing business Research and Development (R&D) is necessary for identification of products needs in the consumer market. This will give a view of products trends in the new and existing market and allow SME’s to quickly understand what the market needs. This stage is very imperative; as it will assure SME’s that the goods being produced will move in the market.


Furthermore, identification of products needs in accordance to the market request. Once the specification is well-defined it will be communicated to other sections in the value chain system. And this will ensure production is in line with the exact quality of product required by the market.


Thirdly, a market survey needs to be carried out to ensure the volume in projected production is what the capacity of the market can consume at every point in time. This survey will enable high inventory turnover, which will ensure quantity produced is what the market can consume at every point in time.


The Production and Supply integration: it describes how best the activities involved in production starting from procurement of raw materials to the point of supply. Below are the necessary steps in achieving the bottom line.


Firstly, the identification and detailed definitions of items and quantities that needed to be produced. Goods must be in line with the agreed specifications of the market request. The bottom-line is to have the required quality of materials, as any flop in this stage will affect the entire value chain.


Secondly, procurement of materials must be in accordance to the production plan and scheduling. More so, storage condition and shelf life of each material has to be considered in purchasing and storing of materials.


Furthermore, the issuance of raw materials has to be done in line with the required components that are needed to make the intended specification of the finished product. An Enterprise Resource Planning technique will be deployed to manage inflow and outflow of raw materials.


Finally, the production of goods, this is the most critical point in the value chain. Any flop that occurs here will affect the bottom-line. Production processes, policies and procedures will be design to ensure time management and quality production.


In summary, application of the above measures in operations will bring about success in the bottom line. The effective management processes will balance the need of the customer with the supply of the said products or services without waste in the system.


Samer El Bizri is CEO of the Zeconomy, Inc. Zeconomy Provides business-to-business online payment services designed to access liquidity from anywhere in supply chain. The company’s business-to-business online payment services are automated and secured, enabling businesses to trade liquidity for price discounts far beyond their direct customers and suppliers without increasing credit risk.

Want to learn more, then visit here: