Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Short note on supply chain management
Aspects of supply chain management
Supply chain management advantages and disadvantages
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Short note on supply chain management
Inventory management is the management of materials in the form of parts or stock in any form internal of the plant and the stability to the external of the demand which is about the flow of materials. Contemporary manufacturing models require high productivity and the ability of companies to respond to the unstable market environment. There are most of the industries in high competition leads to a way to advance the manufacturing process and to build their own inventory management layout accordingly. It is very crucial to the layout such an inventory structure that they accommodate to variation in demand, exclusively when companies consider with multiple goods. Inventory management initial from the acquisition of raw materials manufactured …show more content…
In the lead of companies progressively believe that supply chain excellence is not only to reduce the cost of the source, on the contrary, this is a source of competitive advantage which is possible to improve performance of the customer service profit, asset utilization rate and reduce costs. An effective combination of each entity and chain entity which is necessary to make individual and collective accomplish of this objective (R.P. Kampstra, 2006). Below of the figure 1 will show the main entity of supply chain (Salcedo, …show more content…
Supply chain management covers all the movement and store the raw materials, finished goods from the original point to the point of consumption and work-in-process. In order to compete become a successful in recent market, corporate need to have an impressive and efficient of the supply chain network. The supply chain network has become the key to the success of the corporate due to globalisation and the expansion of multinational corporations. The change of technology brings about the low cost of information flow, which increases the coordination between information flow and supply chain network members (UK Essays, 2015). Essentially, the world is a large supply chain. The main problem involved in supply chain management which including the fast growth of multinational organisations and partnership in the strategic alliance ways; world enlargement and procurement; variation in the price of natural gas and environmental issues, these issues have the symbolic impact on organisation strategy and the bottom line. The reason for these rising direction, supply chain management is the most important commercial guideline in the global today (University of San Francisco,
Inventory management has traditionally been considered as a necessary resource that every company needed. Its primary purpose was to evaluate and control inventory from the raw material level, through the production process and control stage, to the final out-door delivery. These older models of inventory management had several issues, such as inefficient control system, long cycle time, and bureaucratic process. Beginning in the late 1980s, many corporate businesses became deeply interested in developing new inventory management system that will reduce operation cost and expand market chare. Today, the business world is still improving its inventory system. The most effective systems are now not just count products and manage production schedule, but obtain lower prices by making large purchases, and increase inventory turnover. Today, forward-looking corporations build their serious efforts at inventory management systems through implementing new technologies, involved digitization, Internet, high-speed data network, and other e-sources that became available after business outsourcing and globalization.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
Supply chain management is an imperative part of frameworks and operations management in an organisation. The management of operations is fundamental in regard to each organisation since it is the operational viability that permits the organisation in productively meeting out the necessities of their clients. There are different imperative ranges that are incorporated inside the operations organisation in regard to an organisation, and Supply chain management is one such vital region. Supply chain management as the name proposes is worried with the management of stream of materials to the organisation and their conveyance to the last shoppers after they are being handled to completed items.
The topic which I will be discussing in this section is inventory management. Inventory defined as ‘’the standard accumulation of resources in a transformation system’’. (Slack 2011 p. 198) Inventory is an important part of any business because the cost of holding inventory can be very expensive. The case study I am looking at with regards inventory management is the British Airways Maintenance Facility in Cardiff (BMAC) and their management of inventory for their maintenance, repair and operations (MRO) stock at their base.
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
Inventory management is defined because a science mostly established art of guaranteeing that just enough inventory share is command with a company to fulfill demand (Coleman, 2000; Jay & Barry, 2006). it's mostly regarding specifying the size and keeping of stacked product. Inventory management is usually needed at completely distinct spots within a service or within multiple spots of a supply network to guard the standard and planned course of production up against the random disruption of running low upon materials or product. The scope of inventory administration also concerns the good lines between replenishment period interval, carrying costs of inventory, asset management, investment forecasting, inventory valuation, selection visibility,
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...
Wisner, J. D., Tan, K., Leong, G. K. and Wisner, J. D. 2009. Principles of supply chain management. [Australia [etc.]: South-Western.
Adeyemi et al. (2010) describes the work of Durry (1996) who defined inventory as “stock of goods that is maintained by a business in anticipation of some future demand.” It can also be seen as stock of any item a manufacturing organisation keeps, it could either be a physical product or service (Imtiaz Ahmed et al, 2013). Also in manufacturing organisation there are kinds of stocks. They include finished goods, partly finished goods and raw materials. The collective name given to these items is inventory (Mathur 2010). It is also seen as an accumulated tangible property that is held for the purpose of processing production for sales and consumed in the production process of goods and services (Mathur 2010). A manufacturing organisation is an organisation that produces or processes goods or a product from raw materials into finished goods. It usually is a large scale operation that uses machinery to produce or process goods or a product. The goal of a manufacturing organisation holding inventories can be to balance inconsistency of economics. This involves avoiding holding too much stock which can lead to tying up capital with items or goods. This would enable goods to be available when required so as to avoid the cost of not meeting demand at any moment. (Adeyemi et al, 2010) This literature review is going to explore the strengths and weaknesses of holding inventories in manufacturing organisation.
The main objective of business organizations is to remain competitive by providing a better services or best product to satisfying the needs of their customers. All business concentrate to satisfying the needs and wants of customers enables a business to thrive well in the competitive local and global market. Business put in places all important strategies on their operations and also on their supply chain to ensure they achieve their objectives. The strategies help the business organization to have workable long-term goals that focus on the future success of the organization. Operation strategy make sure that a company produces or services are in the path of quality performances, to its customers in a cost effective way. To effectively have a successful operation strategy, it is important that the strategy is divided into corporate, business and finally functional operations. On the other hand, supply chain strategy enables an organization to deliver value across the operations. The supply chain strategy details the step by step action to be taken by an organization in its operations to achieve the desired set goals. This paper looks at operation strategy of Toyota Automobile Company and supply chain strategy of Amazon.com, and how they have helped the companies in implementing their business strategies.
Inventory management means safeguarding the company property in the form of inventories and maintaining it at the optimum level, considering the operating requirements and financial resources of the business. Inventory management emphasizes control over purchases, storage, consumption of materials and determining the optimum level for each item of investments.