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Research The role and importance of Global Supply Chain Management
Conceptual Frameworks for Global Supply Chains
Research The role and importance of Global Supply Chain Management
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What are opportunities and challenges related to global supply chain management, include reference to the five stages? Global supply chain management involves the coordination and integration process of information, finances and materials, when they move globally from a supplier to a consumer. This process includes from suppliers to manufacturers to wholesaler to retailer and finally to consumer (Rouse, 2017). Steps of supply chain management ("The five steps of supply chain management", 2017): a. Planning: this is the preliminary stage, where managers have to decide on their operations strategy either to buy a product or manufacture. ("The five steps of supply chain management", 2017). b. Choosing suppliers: this the …show more content…
Defect and excess stage: this is one of the stages that needs effective management of: identifying defective product, replacing defective product and inventories of return products. Challenges of global supply chain management: some of the global supply chain managements biggest challenges are as follows (Anderson, 2016): a. Customer service: supply chain management is all about providing an effective and efficient customer service. However, providing the right product and services to the right customer as per their need to the right place and time has been always challenging (Anderson, 2016). In my opinion, managers should give a detailed attention in the deliver & logistic and defect & excess stage to ensure that they provide a high level of customer service. b. Cost control: controlling operating cost is an arduous task due to the rising in the cost of fuel, rising commodity prices, increasing labor rates and changing(new) of rules (Anderson, 2016). In my opinion, managers when choosing suppliers have to be keen about their cost. c. Planning & risk management: due to the competitive and dynamic changing of global market, managers in order to stay effective and efficient have to review and do the necessary periodic assessment and adjustment, whenever it is needed (Anderson, …show more content…
Talent: in order to provide the best customer service, managers should hire qualified and interested talent (Anderson, 2016). In my opinion, managers should clearly identify the required skills and experience for a specific position. Following this, they have to recruit, train, motivate, promote employee and molded them to be the future leaders. Opportunities of global chain supply management: SCM has various opportunities as its challenges. Some of the opportunities are (DeAngelis, 2010): a. Increase technology adoption: to provide the best customer service and to manage their supply chain, warehousing and logistic requirements, MNCs are deploying advanced information technology frequently (DeAngelis, 2010). b. Profitable growth: when we say profitable growth it is not only refer to the profitability, however, it also includes penetrating into new markets, providing new service/products, bringing new customers, and increasing market share (DeAngelis, 2010). c. Procurement: procurement has a broader concept and responsibilities than purchasing. This is one of the core activities of SCM and if done properly, it will add value to the organization and makes it different from its competitors (DeAngelis,
WISNER, J.D., TAN, K. and LEONG, G.K., 2009. Principles of supply chain management : a balanced approach / Joel D. Wisner, Keah-Choon Tan, G. Keong Leong. Mason, OH : South-Western Cengage Learning, 2009; 2nd ed. pp 111-113,262
Wisner, JD, Tan, KC & Leong, G 2009, Principles of Supply Chain Management, 2nd ed, South Western Cengage Learning, Ohio.
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
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,
It has become apparent the effects of globalization has changed the marketplace so much in the past few decades that a much faster response is demanded from producers and their supply chain. This is done by effective supply chain management, which is the integration of key business processes acrosss the supply chain within organisiations. The objective of this is to create a system of best value for the entire supply chain including the consumer. In recent years, many firms have realised the importance of the optimization and streamlining of the supply chain management processes, it has since become the focus for many firms.
The ability to manage supply chains effectively is a key component of corporate success. Adopting a supply chain management strategy (inventory strategy) that works to minimize costs, enhance quality and efficiency of products and services rendered, and maintain sufficient levels of inventory while reducing associated carrying costs is ideal for all businesses. Achieving such a goal, however, is quite challenging and most businesses adopt inventory strategies that best enable them to fulfill their most primary needs (e.g. reducing inventory costs and delivering high-quality products). Supply chain management relates to “the management and coordination of a products supply chain for the purpose of increasing efficiency and profitability” (Investopedia, 2008). In order to deliver quality products to customers in a timely manner while decreasing operating costs, businesses must have a sound understanding of supply chain management (SCM) and all that it entails.
A supply chain refers to all parties to manufacture a product, to transport, to support services, and fulfill a purchase. It is a system that transforms raw materials or resources into a finished good to be delivered to the customer. Thus, the product is moving from suppliers to customers. Supply Chain Management refers to a wide variety of activities that firms and industries use to coordinate the key players in their procurement process (Laudon and Traver, 2015). The supply chain, which is the process to connect different partners to better serve the customers, involves the manufacturing, purchasing, transportation, operations, and physical distribution. Supply Chain Management has the power to control, plan, design, execute, and monitor the supply chain
As per definition supply chain management is the management of different stages of all business activities and processes which is necessary to manage demand and supply on a global scale.
Customer service is usually only considered between retailers and end users; however, customer service is the “fuel that drives the logistics supply chain engine” (Coyle 92). It’s important for logistics companies to look at customer service from all aspects, since it is one way that companies can have a distinctive competitive advantage over competitors.
This report gives an insight about the various aspects of supply chain management and operational management and also the important strategies involved. It also explains the importance of managing the supply chain in the business perspective.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Over the past two decades there has been a rapid growth and need for individuals who specialize in Supply Chain Management (SCM). SCM is the central planning of all industrial work and is the logistical motor that keeps the manufacturing world running efficiently; keeping a company's goods and services in constant supply to their customers: “A fundamental element of any business strategy is the supply chain process or strategy to deliver goods and services to the consumer” (Thomas, 2010). SCM requires a disciplined understanding and the use of fields such as economics, computer systems information and marketing. There is a great difference between a company that has an efficient SCM system with one company that has an inefficient supply chain affecting a company's entire resources from labor productivity to consumer loyalty. According to Rhonda R. Lummus (1990) "Interest in supply chain management has steadily increased since the 1980s when firms saw the benefits of collaborative relationships within and beyond their own organization" (p.11). Supply chain management is the brain-trust of any business strategy and when an effective model is put in place the benefits are shared by consumer and producer alike.
Thomas, S. A., & Kopczak, R. L. (2005). From logistics to Supply Chain Management: The Path