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Aspects of supply chain management
Aspects of supply chain management
Aspects of supply chain management
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Introduction:
Supply chain management (SCM) is a type of management that makes the movement of commodity, which means a raw substantial or a main agricultural product that can be bought and sold, such as copper or coffee. It contains the flow and storage of raw materials, work-in-process inventory, and finished goods from point of the source to point of consuming. Moreover, SCM is a regulatory and strategic coordination of business functions; the layout of these functions within the company through a business within the supply chain in order to improve long-term performance of individual companies and the supply chain. There are many objectives of Supply Chain Management. The first one is to Increase the amount of information. At the same time, reduce the expenses of inventory and running processes. The second objective is to create transparency in information and reduce the obstacles that can exist. The final objection of SCM is to find a comprehensive concept of supply operations, and to improve the continuity of materials, information, and cash flow management.
Supply chain leaders have to invest in improving their team’s abilities to see growing prospects about how procurement can assist the work. Some of the issues facing supply chain leaders include; the need to continue to decrease charges while developing consumer service and assistant the widening in new markets and product lines. Another issues is the need to manage the complexity of selling and customer completion. The goal of this literature review is to show the importance of SCM in business as well as, to discuss some major issues in SCM and comparing with other studies that are related to some issues in SCM and how to face these issues and make a solution. Furthermo...
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... want to be connected to assembly lines and conscious of demand throughout the supply chain. Purchasing and supply management occur at all stages of the supply chain. At each level, logisticians exercise their responsibilities to demand and replace products for their businesses from select suppliers to meet demand. Disorganized supply functions can occur anywhere in the supply chain when there is a fracture in communication. In the article, “Supply Chain Management: More Than Integrated Logistics”. Russell (2007), “the Logistics as a management discipline originated in the military and later branched into the commercial sector as business logistic. Now, the hottest topic in the commercial sector is supply chain management”. In other words, supply chain management has a lot of issues now and these issues make this subject huge and very interesting at the same time.
One thing connecting all parts of local to national business, effected by billions of people each day and managed by thousands of businesses individually or together, the supply chain is an effective and much needed tool is our enterprises today. Compared to the business practices in the 90s and earlier back through time, the average business model today is very complex and intertwined with other businesses. No more are the days businesses could run off of a poster or simple advertisement in the community, now the business of social media and the internet are essential to running any establishment and earning money. A very integrated business is more than just advertisement and sales though, the enterprise needs coordination and it will decide to take part in information sharing within the supply chain management it will run. The supply chain
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. The objectives of these organizational divisions are always different and conflict with each other’s objectives. . Marketing puts a higher emphasis on high customer service and maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization---there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved.
Generally, as figure 1 shown that the Strengths for this supply chain is good for short run production and hard make mistake. It could avoid the lack of materials and make materials mixed together.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain. (3rd ed., pp. 143-177). New York, NY: McGraw-Hill.
Radhakrishnan, P. (2001). Proceedings of the 1st international conference on logistics and supply chain management. Allied Publishers.
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
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.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Introduction The growing competition in global markets, demands and expectations of customers, as well as innovative products with shorter life cycles have forced today’s businesses to focus and invest on supply chains. Further, the development of technologies and communications has inspired the evolution of supply chain and its techniques for management (LEVI, David Smichi et al., 2008). Supply-chain management has become the new source of competitive advantage for companies from all over the world. This management is related to managing all the activities related to brining product to the market and satisfying the customers. Thus, the management looks after everything related to manufacturing, purchasing, transportation, distribution, etc.
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,
To resolve these issues, many companies are trying to find tools for implementing best logistic management practices. Research has been conducted on the buyer-supplier relationships in logistics.
‘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...
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.
Since logistics advanced from 1950s, as the trend of nationalization and globalization in recent decades, the importance of logistics management has be expanded in the different area of industries. Logistic is a part of the supply chain management which planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the initial production to final decision of consumption for the purpose of fulfilling the customer requirements in the market. According to Bowersox and Closs, they stated that the principal responsibilities of logistic management includes the design and administration of systems which control the flow of materials, work in process and finished
The traditional outlook of supply chain management only focused on delivery f goods to the customer at the cheapest price possible but the definitions of supply chain has been altered over time.The new supp...