What does a Supply Manager do?

A supply manager, also known as a supply chain manager, is a professional who manages the process of locating and securing materials required to keep a business running. In order to achieve this goal, the manager is usually involved in vendor selection, setting guidelines for ordering and distribution of materials, and overseeing the distribution process. A manager will frequently seek to understand the company’s supply and demand flow and adjust the ordering and distribution process accordingly.

Typically, supply chain management aims to manage the acquisition and most efficient use of materials so that the company can benefit from consistent production without having to keep large inventories that are taxed. As a result, the supply manager will frequently devise purchasing procedures based on the rate at which acquired materials are used during a given production period. This allows the manager to know when to reorder any necessary materials so that they arrive in time to maintain the production rate, but not so far ahead of time that the company incurs a tax liability.

Managing the supply chain typically necessitates close collaboration between the supply manager and the various departments or areas involved in the manufacturing process. This communication is crucial for ensuring that current purchasing guidelines are in sync with raw material requirements. Should production be slowed for any reason, the purchasing guidelines will be adjusted to either buy less of a given material or buy the same amount less frequently. If the supply manager is informed that production will increase, he or she will adjust the number of units purchased or the frequency of orders accordingly.

A supply manager establishes positive working relationships with vendors and suppliers in order to manage the supply and demand process within the operation. When unusual circumstances arise that necessitate action outside of the norm, the value of those relationships is readily apparent. For example, if the company receives a large customer order that needs to be filled quickly, the manager may approach a supplier and request a special order for raw materials that requires expedited delivery. Assuming the manager and vendor have a good relationship, there’s a good chance the vendor will be more accommodating in honoring this unusual request.

A supply manager is constantly evaluating the current rate of usage of all supplies and adjusting the ordering accordingly because production needs are likely to change quickly. This avoids the accumulation of materials that are unlikely to be needed for long periods of time, while ensuring that materials that are needed more frequently are always available. This process not only helps to keep inventories low for tax purposes, but it also helps to keep the company’s overall debt under control.

A supply manager is also likely to be in charge of what is known as a cycle-count inventory in many industries. Essentially, this is a physical count of various materials on a regular basis using internal codes or designations. This procedure allows inventory balances to be adjusted as a result of departments failing to follow proper procedures when retrieving raw materials from storage, materials being damaged while in storage, or other factors affecting the number of usable materials on hand. The change helps keep the ordering schedule on track and ensures that production is not hampered a shortage of raw materials.