Why is Supply Chain Management Growing? 2024

In this, rapidly changing environment, businesses have seen a huge shift. Technological advancement has also led the world to become interdependent. As corporations are traversing the changing landscape of business and customer demands, effective supply chain management (SCM) has become crucial. The supply chain is the backbone of any economy, starting from a home-grown brand to the largest e-commerce business. According to a recent study , India’s supply chain market is estimated to grow by 11.1% compound annual rate growth (CAGR), which will take the market value to USD 6,433.24 million.

By 2030, India will house almost 1 billion adults, which makes it a quarter of the world’s working demography. If we consider this, then India can hugely benefit from its supply of skilled labour.

As the supply chain sector is adapting to new technologies, there is an increase in demand for skilled labour. India, at the outset of housing, the highest workforce holds the potential for immense growth.

But What Led To The Shift In The Supply Chain Industry?

As per a report published by Pwc, there are three major reasons for change in supply chain management. Moreover, there has been a significant shift in the consumer behaviour trends across major industries. Some common points that could be extracted from most of the industries were:

1. Increase in conscious buying of products and services.

2. Expecting better and more immersive consumer experiences.

3. Increase in online purchases and online returns.

Outdated supply chain trends cannot cater to the needs of the new consumer behaviour.

Previous practices were unable to meet the requirements, which was hugely disrupting the market. Therefore, it was crucial to get on the train of changing trends and adapt innovative solutions. In the last few years, as the market has seen a major shift, the demand for highly skilled personnel has also increased. Digitalisation has brought in the need for skills like analytical skills, problem-solving skills, a good understanding of new technology, and the ability to work with multiple teams.

Also Read: Online MBA in Logistics and Supply Chain Management: 2024 Guide

Factors Leading to the Growth of Supply Chain Management

You know how time keeps moving in the background and does not stop; such is the supply chain. It is ongoing in the back, and that is why you receive your orders overnight or mostly in 2 to 3 working days. See how an economy keeps going; although it may sound simple it requires intricate detailing and managing to keep it going. Supply chain management is a skill set that is highly demanded by employers as they navigate through digitalisation and technological advancement in the sector. Here are some of the factors that have led to the expansion in this sector:  GlobalisationWith the technological advancements, businesses have the opportunity to expand their outreach into the international waters as well.

Organisations are going global each day with advanced and innovative technology. Thus there is a requirement for effective management and streamlining of the operations. Companies are dealing with and managing operations across borders. While this is a great opportunity for corporations to grow and expand, it also requires skilled professionals who understand global markets, customs rules, trade and tax regulations, international businesses, operation management, and much more.

 • Technological Growth

Artificial intelligence (AI) and machine learning (ML) advanced technologies are changing the picture of how the supply chain industry operates. These tools and resources all together help the whole ecosystem move in a more efficient way. In addition, these technologies streamline the operations of businesses and also help them adapt to the changes swiftly.

 • E-commerce Bubble Growth

It is not new for anyone if we say that the e-commerce sector has grown exponentially in the last few years. People prefer online shopping over retail shopping because they have the power to compare prices on three to four different platforms. A skilled team is required to handle the whole process from procuring the product to handing it to the consumer. Not only this, but platforms also need to manage huge inventory warehouses, product handling, and risk analysis.

 • Data Analysis and Effective Decision-Making

Traditional supply chain technology has become obsolete, and technological advancement has taken over the supply chain market completely. Presently, organisations are analysing data to streamline supply chain operations. They are also using the technology to analyse the current market trends, reduce costs, and optimise the process. The biggest benefit of data integration in the supply chain industry is that it enhances efficiency and also promotes a unique and competitive edge.

Increase in Demand for Skilled Professionals

As discussed earlier, the above-mentioned factors have led to an increase in demand for talented professionals. As the integration of technology is rapidly evolving, the need for personnel who can navigate these complexities is also increasing.

An MBA in supply chain management will equip you with the right tools and skill set that will help you deal with complex situations within the industry. Companies are on the lookout for experts who can take up such high-risk jobs and perform them beautifully. Some of the roles after graduating with an MBA in supply chain management are:

Top Online MBA Supply Chain Management Colleges in India

Conclusion

Do you want to be a part of the industry that directly impacts the economy of any country? Do you feel this high-risk environment is for you? Do you also want to be a part of the ecosystem that embraces innovative problem-solving? Then supply chain management is the right sector for you. Companies indulging in the technological world are directly impacting the requirement for skilled professionals in the industry.

Take on this path and open the door to exciting new opportunities and make a real difference in the business ecosystem.