Supply Chain Management Essay

988 words - 4 pages

DiscussionNow that businesses have entered the 21st century, competition between companies is becoming fiercer. That is why, a business organization must have a top strategic plan in order to win the market. One strategy of the company to elevate itself from its foes would be supply chain management.Supply chain can be interrelated to a value chain. It is an entire process that provides value to the raw materials in producing the finished goods or service. In an operations management perspective, the role of a business organization is to transform raw materials into finished goods. The finished goods must have more value in order to gain profit. A supply chain is thus considered as a web of interrelated processes, departments and processes to be able to transform raw materials into finished goods and deliver these to customers (Russell 2000). It involves all of the functions, activities and facilities that are included in producing a product from the supplier, brokerage, handling in of stocks to the warehouse, storage, delivery of the stocks, after sales management and inventory stock level monitoring. Because supply chain involves almost all functional unit of the business, its design must be lean and must be part of its strategy. One of the most known and important goal of supply chain management include on-time delivery of goods, healthy inventory levels and zero inventory management.These key performance indicators of supply chain would help the business in satisfying customer needs as well as maintaining the capital and operational expenditure of the business through its accurate forecasting in order to minimize or even eradicate the obsolescence costs of inventories. For example, mobile handsets are with short life cycle. Incorrect forecast and over production will result to high inventories which the company will not be able to sell. Because of the natural obsolescence of the product, the business is left of products that cannot be sold and thus will just be disposed. Imagine if the average cost of a handset is worth $100 with thousands of units that are over-stock, it would really hit the income statement of the business.In order to present stronger evidences on the importance of supply chain in a business, the next portions of the paper will be presenting companies that included supply chain in their operating strategy that contributed in propelling them to be leaders in their respective industry.In the retail/supermarket industry, Wal-Mart is the leader and was able to disclose that it has heavily invested on supply chain management in order to have a real-time communication with its suppliers and have accurate sales information. Integrated system in its supply chain benefited the business because of its ability to have its suppliers, warehouses and point-of-sale location communicate and coordinate with each other as well as provide accurate and real-time information that can be used in forecasting. As an example, through this supply...

Find Another Essay On Supply Chain Management

Supply Chain Management Essay

1290 words - 5 pages Introduction:Supply chain management (SCM) is the combination of art and science of procuring raw components in order to make a product or service and deliver it to customers. According to the Council of Supply Chain Management Professionals (CSCMP), Supply Chain Management "encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also

Supply Chain Management Essay

785 words - 3 pages Supply Chain <Page PAGE 1 of NUMPAGES 5> Dana SackmanWeek 1 - Supply Chain Management PaperISCOM 370 - Strategic Supply Chain ManagementMarch 22, 2010University of Phoenix - Leon PowellSupply Chain ManagementSupply chain management can be described as the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The purpose of

Supply Chain Management

2023 words - 8 pages companies were $72 billion for the fiscal year that ended October 31, 2002.In the late 1980s, HP had faced spiraling inventory and poor customer satisfaction. Solving the latter crucial problem was flagged in 1990 by then CEO John Young as a key objective for the entire company, and one way of accomplishing the objective was through better supply chain management. The supply chain for HP's products contain manufacturing, research, and development

Supply Chain Management - 1158 words

1158 words - 5 pages Supply chain management (SCM) can best be described as link or connection between suppliers, manufacturers, distributors, and customers. Supply chain doesn't only apply to materials being moved but also applies to information being moved. In practice, it's moving items from supplier to manufacture to distributer to retailer and finally reaching the customers. The Supply chain method of shipment or way of business hasn't all ways been around in

Supply Chain Management

2782 words - 11 pages Supply Chain Management (SCM) is the integration of information, technologies and management of key business functions which is linked directly or indirectly and provides services to the same customer. It promotes the flow of products downstream from raw materials to the end consumer and the flow of information upstream from consumer to supplier [1]. In above figure it explains that raw materials is procured and then it goes to the supplier

Supply Chain Management

5464 words - 22 pages Supply Chain Management Introduction Supply chain management is emerging as one of the most powerful business practices. It is transforming the way manufactures operate and work with partners - even the way they think about business. Why all the sudden interest? Mere observation of industrial practice brings to light a simple truth; very few materials remain in the constant ownership of one person, persons or company from their

Dell Supply chain management

841 words - 4 pages Supply chain simulation learning report Supply chain management is an integrated approach to planning, implementing and controlling the flow of information, materials and services from the raw materials and suppliers for the manufacture of the completed or finished product for the distribution to the customer. He we see about supply and demand which is the back bone of any market economy. Demand refers to how much of products are demanded by

Supply Chain Management - 3249 words

3249 words - 13 pages IntroductionThe following paper is a discussion about how supply chain management has been one of the major issues of concern for businesses for several years. In the present era of extremely competitive markets, increased level of globalization and expansion of organization's operations to а global scale, it has become increasingly important for the firms to fully integrate their overall operations so that they can develop а

Supply Chain Management - 1092 words

1092 words - 4 pages Supply chain management (SCM) is the practice of coordinating the flow of goods, services, information and finances as they move from raw materials to parts supplier to manufacturer to wholesaler to retailer to consumer. This process includes order generation, order taking, information feedback and the efficient and timely delivery of goods and services. In order for a business to be successful, the chain must remain as uncluttered as possible

Supply Chain Management - 9446 words

9446 words - 38 pages 1. IntroductionOver the past few years the area of Supply Chain Management (SCM) has received much attention by a large number of academics, consultants and practitioners who are involved actively or not with the processes of developing, manufacturing, distributing, commercialising/selling and ultimately delivering a product or a service to end consumers. This ever-increasing interest has been caused by two main reasons. The first one is that

Supply Chain Management - 810 words

810 words - 4 pages -launch said product and turn the negative into a positive. Sometimes it may take a failure to learn a valuable lesson. Porter’s Five Forces Model Dunkin Donut’s is making strides in supply chain management by using Porter’s Five Forces Model. A few examples of how it is being used, in 2012 “Dunkin Donuts announced that is has combined four separate regional purchasing organizations into a single nationwide US procurement entity.” (Murray 2012

Similar Essays

Supply Chain Management Essay 541 Words

541 words - 2 pages organizations are developing and implementing better systems, which can forecast the demand and supply in a flexible way to the changing needs. The changing business market has forced the organizations to employ highly skilled people on a better infrastructure and to develop supply chain mechanisms, which is flexible to the changing market conditions and demand. IN this document, we will discuss the various aspects of supply chain management in

Supply Chain Management Essay 668 Words

668 words - 3 pages “Supply chain management is the flow of goods, services, and information from the initial sources of materials and services to the delivery of products and activities occur in the same organization or in other organizations”(Horngren695). This approach enables Regal Marine (R.M) to be highly effective, efficient, and profitable. More over supply chain management effectively manage your supply chain by synchronizing the demand for your products

Supply Chain Management Essay

1711 words - 7 pages Supply Chain Management Supply chain management lets an organization get their products of raw goods to the place they are needed at the right time, the right place, and what exactly they have ordered, and at a reasonable cost. It moves from parts supplier to manufacturers to wholesale to retailer then consumer. Supply chain management plays an important role supplying the manufacturers all the way down to the consumer, so they can satisfy

Global Supply Chain Management Essay

822 words - 3 pages consists of all stages involved in fulfilling a customer request. It is a network of facilities and distribution options that performs the function of acquiring materials, transformation of these materials into finished products, and the distribution of these finished products to customers.With these definitions, the supply chain management is the integration of key business processes from end user through original supplier that provides products