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    7 Reasons Why Supply Chain Manager Is Important To Agricultural Business

    Published on July 7, 2020

    Supply chain managers add a lot of value to agricultural businesses due to the way they handle the movement of the goods their companies transact in. They work for large scale agriculture companies in determining how their companies get seeds, chemical medicines, and other necessities needed on the farm. In agribusiness, the supply chain includes the entire farm to fork activities of a particular product.

    Supply chain managers usually handle the movement of goods from the farm to other suppliers and consumers. They are also responsible for the flow of raw materials up to the delivery of the final product. A good supply chain manager can significantly influence the success of the business and ensure a company gets profits. The importance of a supply chain manager to a farm is intertwined with the responsibilities of the manager. They include

     

    1. Boosting Customer Service

    The supply chain manager is responsible for ensuring that agricultural products are available to the customers at their convenience. Customers usually expect the products to be available at the right location and in the right quantities at the right time. Customer satisfaction often diminishes if the customer cannot get what they want and in the right amounts.

     

    1. Reducing the Cost of Doing Business

    Supply chain managers ensure timely delivery of goods, and this saves the costs that would have been caused by perishable products and others that depreciate. The timely delivery ensures there is no hoarding of commodities that would generally cause price increases increasing the cost of doing business. A good supply chain manager will design networks that meet customer aspirations, and this goes a long way in making the business competitive in the market. They negotiate contracts with suppliers and customers on behalf of the company, making the best deals for the company.

     

    1. Improves the Financial Position of the Business

    Supply chain managers can reduce the cost of operations, putting the farm on the way to profit-making. Supply chain managers ensure the company saves on costs of acquiring and selling products, and the saved costs increase profits. By ensuring efficiency in operations such as reducing the use of fixed assets such as warehouses and transport vehicles, the business retains its resources hence makes more profits. The increased efficiency for timely delivery translates to the timely payment of orders.

     

    1. Manage Return System

    Once goods have been packed and dispatched as per the client’s orders, some are returned for being either defective or being the wrong order. Ecommerce has made it easy for customers to easily replace damaged and faulty products as opposed to the way things were a decade ago. The work of the supply chain manager ensures these matters are handled accordingly and that the same mistakes are not repeated. This helps in ensuring customer satisfaction and smooth running of operations. The supply chain manager will try to keep the company away from expensive recalls that can lead to lawsuits.

     

    1. They Ease Production

    It is the responsibility of supply chain managers to make recommendations for the improvement of productivity, quality, and efficiency of operations. They coordinate other departments to ensure production follows client needs and priorities are first met, and there is timely and efficient distribution of goods. They oversee the storage of products, their handling, and distribution.

     

    1. Ensure Ethical Procurement and Corporate Responsibility

    Many agricultural companies have suffered revenue loss due to tarnished reputations following unethical practices by suppliers. Public knowledge that the company is associating with known unscrupulous suppliers can lead to customer reactions that can cause business failure and financial disaster. It is essential to pick ethical candidates during agrilabour recruitment to avoid any actions that may be perceived by the public as wrongdoing.

     

    1. They Help In the Proper Management of Inventory

    All businesses involved in the supply chain need proper bookkeeping. Bookkeeping can affect the working capital and cash floor. Adequate accounting ensures adequate planning, and this contributes to the success of the business. The supply chain managers keep accurate records of processes and analyze the performance of the company. They also work on the forecast, ensuring that the company aligns with the set objectives. Technology is also an integral part of any business. A supply chain manager acts as a link between the agribusiness and the outside world. They help in designing frameworks that are critical to increasing inputs for the business.

     

    Autobiography

    Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time

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