The Importance of Supply Chain Management
Term Research Paper
Ryan Hibbs
Dr. Stanton
BUS 311 B
8 December 2014
Importance of Supply Chain Management The leading companies around the world utilize a new method of business coordination that gives them a competitive edge in the market. Supply chain management gives companies the power of that competitive edge. Supply chain management (SCM) is defined as including all the activities that must take place to the right product into the right consumer’s hands in the right quantity and at the right time. This can vary from raw material extraction to consumer purchase. SCM is able to process and coordinate information from the supply chain, creating a smooth network. It
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A crucial component of the supply chain is to have correct and accurate information as long as an open line of communication in case assistance is needed. Another crucial role in a successful supply chain is the role of management. Management is able to help things run smoothly and assist in any problems that might occur. The advancement of the business world has caused a change in how managers operate. Management can be in charge of overseeing a large number of suppliers and consumers at any given time. They are responsible for managing the supply chain and ensuring that the consumers get what they need. A firm’s good supply chain management is crucial to the success of the business and how they operate. A firm has to improve the flow of information through the chain, accurately depict business models, and efficiently manage the production, development, and delivering of goods. A successful supply chain is able to work seamlessly with other parts of the business such as sales and marketing, engineering, business development, and program management. A good supply chain management can be the difference for the success of all parts of the business. Change goes hand in hand with supply chain management. Supply chain mangers are always managing changes, predicting events, and at the forefront of change. Darryl Barr, Manhattan Associates’ senior director discusses his views of how supply chain management changes. “In my
Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.
The Supply chain is another responsibility that requires skills and techniques to maintain. During the creation process, organizations are creative when it comes to gaining the attention of their customers. At the same time, organizations have to be just as creative to maintain those customers’ interests. Big Mac, gasoline, automobile repair, and even a textbook require supply chain management.
The Supply-Chain Council defines supply chain management as “[m]anaging supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer” (Wisner, Leong & Tan 2005).
chain has become a way of improving competitiveness by reducing uncertainty and improving service. One
Supply chain management plays a very crucial role in the success of any organization and how it can cater to a customer’s need and provide the maximum satisfaction. Supply chain management is essentially managing the flow of goods/services of an organization. It involves raw materials storage, transportation, inventory management, distribution and procurement.
As we know that as far as the concept of global market exist it has gone beyond border and the ways of managing demand and supply are changing. In order to fulfill the basic purpose of have low production cost the companies are looking for set up in such countries where manufacturing and production cost be lowered by getting cheap labor and raw material. It is the process of acquiring the raw material and vendor to provide the right quantity, quality at right price and at right time calls for a dynamic
Effective supply chain management (SCM) has evolved as an essential prerequisite of securing competitive advantage and boosting organizational performance as supply chain is an integral part of the organization. This article covers the seven most popular SCM practices (Strategic Supplier Partnership, customer relationship, level and quality of information sharing, demand management, procurement, inventory management,) and describes how SCM can give a company competitive edge and improved performance.
Supply chain management is a main process in all kinds of companies. That’s because an optimized supply chain results in lower costs and a faster production cycle.
The best organizations worldwide are discovering a strong new supply of competitive advantage. It 's known as supply chain management and it encompasses all of those built-in activities that bring product to market and create satisfied customers. The supply Chain management program integrates issues from manufacturing operations, purchasing, transportation, and physical distribution into a unified program. Positive supply chain management, then, coordinates and integrates all of these hobbies right into a seamless approach. It embraces and hyperlinks all of the companions within the chain. In addition to the departments within the group, these partners comprise vendors, carriers, third party companies, and information programs vendors.
Managing the Supply Chain ( SCM) is a set of approaches used to efficiently integrate suppliers, manufacturers , warehouses and stores so that merchandise is produced and distributed in the right quantities , at the right place at the right time in order to minimize system cost while the wide requirement of satisfactory levels of service . It can also be defined as the coordination of production , inventory , location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market served .
Supply chain management is an integrated process that constitutes the various stages through which a product passes prior to reaching the ultimate consumer. Every product or service is designed in such a manner that it is able to meet the requirements of its target consumers. Through a well formulated and managed supply chain process, products that are manufactured are able to reach out to its consumers effectively and through the process it is possible to make it available at a convenience to the customers. The processes constituted in the supply chain system are continuously active and are always being monitored and managed by several people across the system. An efficient supply chain management system ensures that there is speedy delivery of the product from the stage of the manufacturing through the various channels for delivering it to the consumers.
When we look around in a study room, we know everything is produced by different manufactories, but we do not know how the table or chair is produced from the row materials, and what the most efficient way through the manufacture process is. All these activities involved a term Supply Chain Management (SCM).
Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.