Supply Chain Management MBA and Procurement

Supply Chain Management and Procurement MBA

In the current economic environment, businesses need to reduce costs through the management and analysis of their entire procurement systems. Monitoring a company’s costs is key to high profits and is the responsibility of the managers of the supply chain. One route to understanding procurement and the supply chain is the Masters of Business Administration (MBA) degree in supply chain management.

Today’s businesses demand on-time deliveries of needed materials to prevent production disruption. The MBA in supply chain management strives to provide you the skills you need to understand important procurement practices, including the lowering of inventory contents and the avoidance of non-value added activities wherever possible. You might learn about further methods of cost reduction, including eliminating most paper invoices and the majority of purchase orders, as well as streamlining material lead-time deliveries.

You may also learn about discarding obsolete modes of communication between buyers and manufacturers and how to rely on electronic interactions. The goal of the supply chain management MBA is for students to gain a solid understanding of the elimination of material shortages and how it raises customer satisfaction and often leads to repeat business.

However, there is so much more to the supply chain management MBA. It is good
business practice to implement a flexible supply chain that can quickly respond to shortages of materials, increases in supply requirements or decreased forecasts of the need for products. Storage and transportation account for some of the cost of materials procurement.

The longer the period of storing inventory, the greater the cost. As the distance between the supplier, the raw materials, and the buyer rise, so does their cost. Tactical planning and transportation sourcing can reduce costs by lean selection of routes and transporter. Individuals with core competencies in procurement are in great demand in the current economic downturn.

Providing superb customer service also has quite an impact on a company’s bottom line. The supply chain management MBA aims to teach students how to minimize risk as yet another strategy to reduce costs. Using electronic procurement systems has increased mightily over the past decade. Such systems can be used to store data on very minutely defined information. These electronic procurement systems must support the entire array of supply chain processes: locating suppliers, easing the way for negotiations, and evaluating the value of supplies offered. Another key requirement of sourcing is to help a buyer identify potential suppliers. Several electronic procurement vendors provide a supplier network, which is aggregated supplier information that gives users access to a broad group of suppliers.

Every procurement operation is seeking to find the best deal possible, and with the MBA in supply chain management, you could be that person who helps companies find their way. They are looking for the best and lowest cost materials, the most efficient transportation method, the most readily available high-quality goods, and excellent customer service. Start earning your MBA today!