This website uses cookies to ensure you have the best experience. Learn more

Supply Management And Value Added Processess

1814 words - 8 pages


Expectation that top management in companies – both in private and public sector – places on supply is growing exponentially, mainly because of the permanent drive to lower cost and retain competitive advantages on the market, but also to create additional value. Research has shown that the perception of impact of supply chains on the results of businesses will grow in the future, taking a more prominent role in company structures over time.
According to research conducted by Monczk (2010), there is a strong indication that top level managers will be included in the supply chain much more in the future, mainly in the form of adding value through supply than in cost reductions. Top companies are already focusing their efforts on supply chains in the process of making business plans, and consider that better supply management can lead to better results in all branches of the company (Kearney, 2002). According to Dwyer (2010) there is evidence to show that companies allocate larger amounts of expenditure towards supply. This means that supply chain, besides raw materials, maintenance materials and other functions takes an increasingly prominent role in decision making regarding machinery, construction/acquisition of property and related equipment procurement. Top management in leading companies, almost without exception, finalises decisions concerning supply in over 70% cases – excluding salaries – which led to nearly 10% cost reduction (Dwyer, 2010). When compared to companies where management finalises up to 40% of costs, the difference is obvious, the latter has shown only 1% cost reduction.
Supply is slowly coming to the forefront of business management, and corporate leaders everywhere begin to realize how beneficial it is for the success of their companies. This paper will try to evaluate how successful companies manage internal supply and external demand, and whether or not this has an impact on the final result of their companies. In line with the evidence found in the literature, this paper will try to prove that successful supply management results in better business results, and additionally significant cost reductions.

Supply – from operative to strategic business function

For a long time, most businesses regarded supply as a function that was meant to gather and process demands from other business functions – processing, manufacturing – summarize them, contact the supplies and choose the best offer from several on display. Considering the development of this branch of business, many authors developed different models which interpreted the shifting role of supply within the general business strategy. This summary will briefly look at two such models, that of Reck/Long and Stannack/Jones.
Model of development by Reck and Long (1988) states that the first development phase of supply chain focuses only on procurement of goods and services. In this phase, supply chain collects requests from other divisions/departments,...

Find Another Essay On Supply Management and Value Added Processess

Sustainable and Responsible Supply Management Essay

921 words - 4 pages Sustainable and Responsible Supply Management Ford Motor Company continues to improve their sustainability performance throughout its supply chain system, through their advanced supplier partnership initiatives. The automobile supply industry can be one of the most complicated of any industry. Automakers like Ford rely on thousands of tier-one suppliers to provide the materials, parts and services to make its final products. Since, many

Freight Rate Management and Shareholder Value

2292 words - 9 pages companies must ensure that the product arrives in time to the areas in deficit to avoid losing value and demand (Kavussanos & Visvikis 2006). This means that the freight rates have to be adjusted to fit into the industry’s demand and supply. The correlation between freight demand and supply influences instability of the freight rates and leads to company’s increased risk, especially when dealing with perishable goods. Freight rates also affect the

Strategic supply chain and logistic management

2779 words - 12 pages Introduction An successful integrated supply chain management depends heavily upon areas of operation management, logistics, procurement, and information technology (IT), together they strives for better results . Therefore, transparency with one another with the help of computer systems and programs that can be access or tailor to individual needs is essential. Depending on the operating purpose, it is important that all machines in the

Toyota and Volkswagen supply chain management

4885 words - 20 pages have given some future strategies of those concerns.Definitions:Supply chain: Supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction) through to the end user all well as the associated information flows. Material and information flow both up and down the supply chain.Supply chain management: supply chain is the integration of these activities through improved supply chain

Dell: Supply Chain Management and Electronic Commerce

1499 words - 6 pages Introduction: Dell, one of the largest technological corporations in the world, sells personal computers, software, computer peripherals and other digital products among the world. According to the Fortune 500 list, Dell is currently listed as number 51. Dell is well known for its customer-oriented services such as supply chain management and electronic commerce. More specifically, the supply chain management (SCM) used by Dell allows


1942 words - 8 pages Conclusions In conclusion the Internet has played a pivotal role in transforming industry value systems. It has affected some areas in more ways than others. Logistics and operations have been completely transformed in coordination with globalisation while marketing and sales has found new audiences the world over. With technology constantly evolving, supply chain management is changing with it and (with the Internet linking them together

Challenges and Possibilities for BIM Supply Chain Management

704 words - 3 pages This paper could identify the strategic areas related to the construction challenges and possibilities for BIM established supply chain management between a main project stakeholder such like the Client, contractor and product suppliers. First of the areas is design management, where it is essential to clarify how the model based design provided by a product supplier is linked to the architectural and structural design of the construction

The Coca-Cola Company: Market Based Management and Value Driven Management Strategies

1568 words - 6 pages as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold of the market. Market Based Management is premised upon a free market system, as described by Jones and George (2014). The principle is based around pleasing the customer by meeting supply with demand. It is imperative to be able to understand the market, and then to react accordingly to the market. These

Devising of Optimization Models and Modelling Systems for Supply Chain Planning and Management

1847 words - 7 pages Any software tool that claims to analyze or optimize a supply chain uses this process. The questions we must stay focused on are, "What does the software really do in each step?" and, "What does it expect me to do?" If we keep asking these questions, we can find out the exact value the tool in question adds to the data.We must stay on this message because the supply chain software industry is confusing. Nearly every vendor uses words like

Compare and contrast the supply chain management approaches take by H&M, Benetton and Zara

2717 words - 11 pages The purpose of this essay is to discuss different supply chain management approaches taken by H&M, Benetton and Zara. It is first necessary to explain what a supply chain management means. Supply chain management involves planning, design, maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customer's requirements (Schroeder, 2000). Such an approach, of looking at the entire supply

Supply and Demand Chain Management: The Effect of Adding Services to Product Offerings by

880 words - 4 pages the research question of “How does changing the offering affect the supply and demand chain management?” (Bustinza, Parry. & Vendrell-Herrero, 2013, p. 618). They achieve their research objective through a study of the music industry and demonstrate how the digitization of the creative industries has affected the supply and demand chain management approach when new services are added to traditional product offerings. Operations Management (OM

Similar Essays

The Role, Purpose, Use And Impact Of Value Added Tax

1641 words - 7 pages , prescription drugs and charity.Individuals or companies with an annual turnover over a certain value from taxable supplies, which currently stands at $58,000, needs to apply for VAT registration with HM Revenue & Customs as a 'taxable person', which can be an individual or partnership, company, club, association or charity. Once registered, a taxable person is charged VAT whenever a 'taxable supply' of goods or services is made. Companies supplying

Value Chain And Supply Chain Analysis

990 words - 4 pages , providing superior quality, shipping deliveries faster, and improving overall service. This is done through the effective management of both the supply chain and value chain. For organizations dealing with operations and suppliers in various countries, they need to expand their management to the global level and ensure their global supply chains and global values chains are set to run effectively and efficiently.A global value chain refers to the

Purchasing And Supply Management Essay

2529 words - 10 pages Purchasing and supply management holds a position of the mortar to hold the bricks together in the business world. Within purchasing and supply management, there are a few steps while creating a project supply, service, and material budget from detailed requirements. Those steps show how to select the most qualified suppliers and strategies for negotiating prices. Along with this, there are also benefits and costs of outsourcing. This

Crm And Supply Chain Management Essay

1872 words - 7 pages information across various points in their value chain. It guarantees reduction in costs and improved productivity by identifying process enhancement opportunities.Supply Chain Management is simply the process of optimizing the delivery of goods, services and information from supplier to customer, balancing supply and demand. Supply chain management is typically viewed to lie between fully integrated firms, where the entire material flow is owned by a