The Economic Value of Supply Chain Service Management

Supply Chain Service Management

Supply Chain Service Management - often referred to as SCSM - is simply how supply chain teams manage processes that occur outside of a transaction system. This includes any process within the end-to-end supply chain that is not entirely contained within a single transaction system.

While this sounds easy enough, the increasingly complex and competitive nature of supply chain management requires a modern management system to match. Globalization’s creation of a vast supply chain network, reliant upon multiple moving parts, makes it harder than ever to stay up-to-date and informed on every aspect of the process.

Meanwhile, customers have come to expect high levels of efficiency, which directly impact a company’s bottom line. The combination of more demanding and complex processes, razor-thin timeframes, and slim margins for error are best likened to a gymnast doing a back-handspring on the balancing beam: Even the best in the world will eventually stumble.

One Defining SCSM Core Principle

As a result, SCSM exists with one defining core principle: that supply chain processes should be delivered as a service, aimed at facilitating a smoother end-to-end experience. Battle-weary supply chain teams may balk at the thought of adopting SCSM. But, by relying upon modern technology and proven change management methodologies, SCSM can save your company invaluable time and money. Apply SCSM towards resolving any of the numerous issues that crop up daily in supply chain including late or delayed shipments, stock transfer orders, supplier non-conformities, service level disruptions, and more.

Teams that utilize SCSM can expect to adeptly handle deviations from plan, saving the team time by resolving incidents faster and permanently through process optimization and real-time data insights. With faster, more reliable processes, the company can expect to experience a significant reduction in supply chain disruptions, creating substantial operational benefits, such as protected revenue, preserved customer relationships, and lower costs.

Integrating Supply Chain Service Management into your operations provides significant benefits to your business’ top line (i.e. revenue) and bottom line (i.e. direct and indirect costs) while also increasing customer satisfaction and market share.

Within the first year, Elementum users have experienced:

• $300M in revenue protected
• 40-50% decrease in day-to-day supply chain exceptions
• 60% reduction in time spent resolving exceptions