Supply chain management is the backbone of many major corporations, playing a pivotal role in ensuring the smooth flow of goods and services from production to consumers. However, it often operates behind the scenes, leading some to undervalue its significance in comparison to more visible aspects of a business. In this article, we will explore why supply chain management can be underrated in major corporations, the factors contributing to this perception, and why this perspective is changing.

Cost-Cutting Focus:
One reason why supply chain management may not receive the attention it deserves is the relentless pursuit of cost-cutting. In the quest for profitability, companies may place a heavy emphasis on reducing expenses within the supply chain. While cost reduction is essential, an excessive focus on cutting costs can sometimes neglect other crucial aspects of supply chain management, such as resilience and innovation.

Lack of Visibility:
Supply chains are complex networks that often span across multiple regions and involve numerous suppliers. Maintaining full visibility and control over every aspect can be challenging. This lack of visibility can lead to the underestimation of supply chain management’s importance, often not recognized until a disruption or crisis occurs.

Short-Term Thinking:
Some companies prioritize short-term financial gains over long-term strategic investments in their supply chains. This shortsighted approach can leave them ill-prepared for potential disruptions or changes in the market, as they may lack the flexibility and adaptability needed to respond effectively.

Silos within Organizations:
Large corporations frequently have different departments and teams responsible for various aspects of the business. When these departments operate in silos, it can be difficult to recognize how supply chain management is interconnected with other functions. This can result in the failure to prioritize it appropriately.

Complacency:
When supply chain operations run smoothly, companies may become complacent and underestimate the need for significant investments or changes. However, recent global events, such as the COVID-19 pandemic, have underscored the importance of supply chain resilience and adaptability.

Limited Awareness:
In some cases, executives and decision-makers may not fully understand the complexities of supply chain management and its profound impact on overall business performance. This lack of understanding can lead to underappreciation for its importance.

Changing Perspectives on Supply Chain Management:
In recent years, global events like natural disasters, trade disputes, and the COVID-19 pandemic have brought greater awareness to the critical role of supply chain management. Companies have realized that disruptions can have far-reaching consequences, and supply chain vulnerabilities must be addressed. As a result, many organizations are now reevaluating their supply chain strategies and making concerted efforts to enhance resilience and agility within their supply chains.

While supply chain management may have been underrated in some major corporations in the past, its importance is becoming increasingly evident in today’s dynamic business environment. The interconnected nature of supply chains and the potential for disruptions highlight the need for a more comprehensive approach to supply chain management. As major corporations adapt to these changing realities, they are recognizing that investing in a resilient and agile supply chain is not just a strategic advantage but a necessity for long-term success. Supply chain management is no longer in the shadows; it has taken center stage in the quest for business resilience and success.