Micro SCM

Micro SCM is all about cost reduction

Supply chain management is a concept which deals with all activities range from the procurement of raw material to the distribution of end products. There are different issues that crop up while dealing with these activities. For the smooth functioning of an organization, supply chain management plays a crucial role.

When supply chain management is focused on cost control, it is referred as micro SCM. It is also called MRO (Maintenance, Repair and Operations) Supply Chain. Managing these aspects of business can cut cost to a considerable level. Actually, micro SCM is all about devising such plans and strategies which may assist to control cost in MRO.

It is essential to mention that there are lots of experienced companies who offer their services in this regard. These are the companies who come with comprehensive knowledge of inventory management. These companies offer their services to assist your purchasing and maintenance staff in terms of working with a specific supply chain management program.

Basically, micro SCM helps an organization in following regards.

  • Reduced Inventory Investment
  • Reduced Procurement Cost
  • Improved Vendor Management
  • Improved Process Management
  • Improved Technology Management
  • Improvement Maintenance Management

Inventory management is the most important thing in terms of increasing the profit of an organization. In most cases, inventory managers don´t even know how to manage inventory through micro SCM. Similarly, maintenance emergencies can uplift the production cost and that´s where micro SCM comes into the picture with all its benefits. It is a complete process which doesn´t focus on one aspect but all aforementioned aspects are handled through micro SCM.

The crux of the matter is that supply chain management is extremely important concept that every business organization should learn. By focusing on specific aspects, an organization can easily reduce its costs of production which is directly related to an increase in profit.

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