Five Benefits of Six Sigma in Supply Chain Management in 2024 [Updated]

Be the change to bring the change!

Supply chain management, not a new name for at least people in the industry and people with MBA degree. But if you’re an engineer and have been recently promoted to the Team Manager, then there’s something really important for you.

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Finally a break from the long codes is what might be making you happy, but just remembers your freshman days or the day you discovered the presence of Intellicense for the first time while programming. Your eyes were wide open, right? Okay but it still brought a smile. At least you were relieved from writing the complete code and then the shameless compiler denying it with a long list of errors.

Not understood yet? Sometimes things seem pretty small but they let you take leaps over others. Just the same way is Six Sigma benefits with SCM- supply chain management. SCM leads to product operation and increases efficiency but then, what next?

Here comes Six Sigma. Product innovations are what make you a game changer of the market. The synergy between six sigma and supply chain management depends on

1. Project discipline
2. Sustaining results
3. Well-established HR framework
4. Qualitative results

The most amazing combination of SCM and Six Sigma that worked wonders was for the company Samsung. Started in 1938, it focused on ship-building, machinery, textiles and chemicals. It was in 1980’s that they made enormous effort and investment in the electronics and semi-conductor industry working on the principle of Six sigma. The huge profits they earned from it and you now since then there’s no turning back.

So you need to be the change first to bring a change!

Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace

Supply chain management leads to product operation and increases efficiency then Six Sigma adds Product innovations which gives a product an extra edge in the competitive market. The synergy between six sigma and supply chain management depends on Project discipline, Sustaining results, Well-established HR framework, Qualitative results. Check out our highly recommended six sigma course.

Benefits of six sigma in supply chain management are as follows: Reduce Waste, Six Sigma is designed to ensure that the minimum amount of waste is produced in the supply chain, Improve Speed, Increase Predictability, Reduce Costs, Better Identify Problems, Improve Team Member Engagement.

The entities in the supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers. The functions in a supply chain include product development, marketing, operations, distribution, finance, and customer service.

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