Running head: SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT 6
Supply Chain Management
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Supply Chain Management: Improving Process Efficiency and Effectiveness
Introduction
Companies are now supporting their supply chain strategies with the focus on being in driving transformation and realizing true competitive advantage. A company’s supply chain is supposed to be robust enough to enable it withstand the changing local, environmental, and social demands while remaining agile enough to enable it react to market shifts. In today’s environment, business managers are demanding more from their changing supply chains with their focus on competitive advantage. Such changes in expectations force supply chain leaders to focus more on the whole value chain. The trends involved in improving process efficiency and effectiveness in supply chain management include:
Improving strategic decision-making processes
The many decision-making agents together along with supply chain means that understanding and evaluating the dynamic behavior is very important. Application of a generic approach to modeling the supply chain dynamics is essential in the distribution processes (Gattorna, 2010). Both the physical processes which include primary and secondary manufacturing warehousing and distribution and the business processes should be modeled. The focus is how decisions are made at different nodes of the supply chain, who makes them, what methods or tools are used, among other factors (Coyle, Langley, Gibson, Novack & Bardi, 2013). The main aim of such an approach should be to replicate and integrate the behavior of supply chain in software. The logic or system of software tools used in decision-making at different nodes and systems are replicated in the simulation tool. Such an approach creates a non-invasive improvement in the operations of supply chain. These improvements are enhanced through changes in different parameters such as safety shocks or various business processes such as relationships between agents.
Improving the existing operations and processes
The supply chain normally involves many agents some with different objectives. Internal dynamics often exaggerate external market dynamics, and this leads to detriments in performance (Waters, 2010). In this case, collaborative forecasts, inventory and planning management will be needed. The different agents involved in the supply chain should coordinate activities all across the chain. The reason behind the current, much distributed approach is the large scale of operations in terms of geographical span and activities. Scheduling tools and multisite planning are necessary in supporting a collaborative planning activity. Supply chain normally contains large amounts of inventories than it may be necessary and this calls for an enhanced and coordinated approach with appropriate supporting tools (Bowersox, Closs & Cooper, 2013).
In many global industries, it’s evident that the supply chain cycle time is substantially more. This means that the most essential metric of tracking and improving the operations is enhancing the overall cycle time involved in supply chain. It’s essential to undertake a systematic evaluation of components of cycle time for wider range of products produced in global industries (Christopher, 2015). Large scale simulation practices and tools that consider both business and physical processes are useful in aligning business strategic goals with supply chain strategies.
Integration of Supply Chain and Information Technology
Supply chain management mainly focuses on flow of information and products between members of the supply chain organizations. Advancement in technologies has enabled organizations to provide information easily within and outside their premises and thereby enhance supply chain management. The technologies help in coordinating activities necessary in managing the supply chain. Costs on information have decreased as a result of use of technologies. IT infrastructure provides competitive positioning for business initiatives such as cycle time reduction and implementing cross-functional processes (Christopher, 2015). There has been huge gains by organizations involved in the supply chain relationships via information technology. Various factors have impacted the change in the benefits of information: Customer satisfaction has become a corporate obsession as organizations strive to serve customers in the most effective and efficient manner; Information is a critical factor in relation to the manager’s abilities in reducing human resource requirements and inventory to a much competitive level; The flow of information is a basic factor in strategic planning in supply chain (Chopra & Meindl, 2007).
All enterprises involved in the supply chain management have a specific function to perform. The collaborative efforts facilitated by technology enable organizations to have more power which is a central aspect within the supply chain (Christopher, 2015). However, the power has been gradually shifting from the manufacturers to retailers. This has been enhanced by the fact that retailers are in a central position in relation to information access in the supply chain. The advancement in technologies has therefore enabled improvement in supply chain through providing timely access to information (Waters, 2010).
Conclusion
Supply chain management integrates the key flows across a company’s boundaries in the supply chain which include materials/products, information and financial aspects. A successful coordination and integration of the three flows has enabled improvement in effectiveness and efficiency for organizations. Supply chain management establishes strategic importance of logistics in order to achieve business success through creating value throughout the local and international supply chains. Supply chain provides structures on which logistical measures and strategies are developed and implemented.
References
Bowersox, D., Closs, D., Cooper, M., & Bowersox, J. (2013) Supply Chain Logistics Management (4th ed.). New York: McGraw-Hill.
J.J. Coyle, C.J. Langley Jr., B.J. Gibson, R.A. Novack, and E.J. Bardi, (2013) “Supply Chain Management: A Logistics Perspective” 9th ed. Mason, Ohio: South-Western Cengage Learning.
John Gattorna; (2010) “Dynamic Supply Chains: delivering value through people” Harlow; New York, NY: Pearson Financial Times.
Martin Christopher. (2015) “Logistics and supply chain management: creating value-added networks” Harlow, England; New York: FT Prentice Hall.
Sunil Chopra; Peter Meindl. (2007) “Supply Chain Management: Strategy, Planning, and Operation” Upper Saddle River, N.J.: Pearson Prentice Hall.
Waters. C. D. J. (2010) “Global logistics: new directions in supply chain management” London; Philadelphia: Kogan Page.

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