Did you know that 70% of the time, products spend more time waiting in inventory than they do at their final destination? And did you know that an increase of just 20% in inventory can cost a company as much as a 10% loss in profit? If your answer to both is yes, then you’ll understand why companies place such importance on their supply chain. The success of any business depends on how efficiently it can manufacture and deliver its products to end-customers. That’s why everything from top-tier companies to smaller manufacturers are implementing practices like supply chain management and supply chain management certification into their processes. In this blog post we explain the importance of supply chain management and supply chain management certification, how to become certified and what you’ll need to do if you want to get started.
What is Supply Chain Management?
Supply chain management is the process of managing the flow of goods from the point of origin through all the stages of production and distribution to the point of sale. Supply chain management is an essential function in any organization engaged in business-to-consumer or business-to-business transactions. The supply chain and supplier relationship management must be effective for the efficient operation of all business functions. The goal of supply chain management is to seamlessly manage the flow of products from their point of origin through all stages of production and distribution to effectively meet customer needs and ultimately lower costs. Supply chain management isn’t just about managing the logistics of how products are made, but how those assets are utilized and how they are connected with other assets in the organization.
Why is Supply Chain Management important to Businesses?
The way in which companies manage their supply chain can have a significant impact on their profitability — as well as their ability to compete in the market. But not all supply chains are created equal. It’s true that additional time spent waiting at the dock is an irritation, but it can also cost the company money. And if your company’s supply chain has a delay, then your customers are going to experience a delay too. While it’s true that some companies have a great relationship with their dock workers and can avoid delays, most of them don’t. And that’s why it’s so important to have a great supply chain.
How To Become Certified In Supply Chain Management
Achieving supply chain courses is a two-step process. First, you need to complete the certification exam. Then, you’ll need to submit your exam report to an approved testing agency in order to receive your certification. Supply chain management certification typically consists of a written exam and a practical exam. Let’s take a look at how to become certified in supply chain management. First, you’ll need to find an institute that offers supply chain management certification. You can typically find this information through your industry association, career center, employer or other resources. Then, you’ll need to register with the institute in order to pay the exam fee and reserve a seat in the exam. Typically, this will cost between $200-$1000. And finally, you’ll need to schedule your exam. You can do this through the institute’s website or contact them for assistance.
Things you’ll need to become certified in supply chain management
- A computer with internet access
- A high-speed internet connection is required. You can’t take the exam in a mobile device.
- To take the supply chain management certification exam, you’ll need a reliable computer.
- To get certified in supply chain management, you’ll need to register with an approved testing agency.
- The cost to get certified in supply chain management can range from $200 to $1000.
- Depending on the institute you choose, you may be able to use a test-taking strategy to help you maximize your exam score.
- Lastly, you’ll need to complete your certification application and submit it to an approved agency.
Things you’ll need to know before taking the exam
- You’ll need to know the difference between the demand, supply and capacity of a product
- You’ll also need to know the difference between inventory and capacity.
- You’ll need to know the difference between buying back stock and reducing inventory.
- You’ll need to know how to calculate the cost of sales, direct materials, overhead and labor costs.
- You’ll need to know how to calculate break-even points and find the optimal point between staying in business and shuttering the doors.
- You’ll need to know difference between direct and indirect cost.
- You’ll need to know the difference between direct and indirect cost.
- You’ll need to know major risks while doing business.
- You’ll need to know major risks while doing business.
Finding an institute that offers supply chain management certification
A certification in supply chain management provides proof that you have acquired knowledge in the field. It also provides a competitive advantage by differentiating your company from the competition. There are many institutes that offer supply chain management certification and you can easily find one that is right for you by doing the following. – Do your research. The best way to find an institute that offers supply chain management certification is to research your competition. This will help you figure out what you need to do in order to get ahead in your industry. – Visit the institute’s website. Once you’ve figured out what your competitors are doing, visit each institute and see what they have to say. This will help you figure out which one is right for you. – Request information. Once you have narrowed down the institute’s curriculum, write them a letter requesting more information about their programs. – Find customer reviews. Last, but not least, find customer reviews from students who have taken the institute’s supply chain management certification exam.
- What is the difference between a logistics manager and a supply chain manager?
- What does the supply chain management certification cover?
- What is the best way to study for the exam?
- Are there any practice exams for the certification? –
Where can I find more information on the certification?
You now have all the information you need to get started as a supply chain manager. From understanding the importance of the role to finding an institute that offers supply chain management certification, you’ll be ready to take on your new role.