A supply manager oversees the process of obtaining materials for a business, including selecting suppliers, managing distribution, and adjusting orders based on supply and demand. They establish relationships with vendors and suppliers and constantly assess the rate of use of supplies to prevent accumulation and keep inventories low. They also oversee cycle count inventory to ensure production is not slowed down due to a lack of available raw materials.
Also known as a supply chain manager, a supply manager is a professional who oversees the process of locating and securing materials needed to keep the business running. To achieve this objective, the manager is usually involved in selecting suppliers, setting guidelines for ordering and distributing materials, and managing the process used for this distribution. Often, a manager will seek to understand the flow of supply and demand within the company and adjust the ordering and distribution process accordingly.
Supply chain management typically seeks to manage the most efficient procurement and use of materials so that the company benefits from stable production without the need to maintain high taxable inventories. For this reason, the supply manager will usually develop purchasing procedures based on the usage rate of purchased materials during a given production period. This helps the manager know when to reorder any of the materials needed so that they arrive in time to maintain the production rate, but not so far in advance that they create a tax liability for the business.
Supply chain management usually involves close interaction between the supply manager and the different areas or departments involved in the production process. This communication is essential to ensure that current purchasing guidelines are in line with raw material needs. If production is reduced for some reason, the manager will adjust purchasing guidelines to buy less of a given material or buy the same quantity less often. Likewise, the supply manager will adjust the number of units purchased or the frequency of orders upward if he is told that production will increase.
To manage the supply and demand process within the operation, a supply manager establishes positive working relationships with vendors and suppliers. The importance of these relationships is easily illustrated when unusual circumstances arise that require some type of action outside the norm. For example, if the company receives a large customer order that must be filled in a very short period of time, the manager might approach a supplier with a special order request for raw materials that require expedited delivery. Assuming the relationship is strong between the manager and the vendor, there’s a good chance the vendor will be kinder in taking steps to accommodate this unusual request.
As production needs are likely to change quickly, a supply manager is constantly assessing the current rate of use of all supplies and adjusting orders accordingly. This prevents the accumulation of materials that are unlikely to be needed for long periods of time, ensuring that the materials you need most frequently are always close at hand. In addition to keeping inventories low for tax purposes, this process also helps keep overall business debt within reason.
A supply manager will also likely oversee what is known in many industries as a cycle count inventory. Essentially, this is a periodic physical count of various materials by internal codes or designations. This process allows you to adjust for inventory balances that may occur due to departments failing to observe proper procedures for picking up raw materials from storage, materials damaged during storage, or other factors that affect the number of usable materials available. The adjustment helps keep the order schedule on track and ensure that production is not slowed down due to a lack of available raw material.
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