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Supply Chain Management
Introduction
Quintessentially, the supply chain management is the outline as the oversight of information, finances and materials as they move from the supplier, manufacturer, wholesaler, retailer to the consumer. With this regard, it involves integrating and coordinating the flows both in the company and among other companies. Studies outline that, the ultimate goal of supply chain management is to distribute the products required by the final consumer (Mentzer 3). With this in mind, the supply chain management ensures that all the movement of raw materials from the point of origin to consumption meets the consumer needs, which in this case, are getting the goods at the right time and process. In facts, it is the integration of the key business process in the supply chain to create value for stakeholders and customers. With this in mind, this paper seeks to discuss supply chain management through addressing its function, components, benefits and its issue.
Functions of supply chain management
According to Blanchard (30), the main functions of the supply chain management include logistics, purchasing, defining business relationships and boundaries, designing product interface and managing supply and demand. With this in mind, logistic is the process that involves moving, storing, transporting or handling material. This involves flow of goods with services from the point of origin to consumption stage to meet the necessities of consumers. Lambert (5) argue that, logistic involves amalgamation of information, warehousing, packaging, material handling and a time security. In other words, the supply chain management adds value in regards to time with place utility.
Secondly, the supply chain management play a fundamental role in purchasing in the sense that, it acts as the link between vendors with the company through assisting vendors in aspects like material specification and in transportation. As a result, purchasing maintains the value and quality of the company goods, lessen the cash-tied up within inventory and strengthening the firm competitive position. In essence, purchasing entails product specification, processing and receipt of the requisition, inspection of products received and later having an appropriate storage. Thirdly, defining boundaries in business relationship is the core purpose for the supply chain management. In this regard, understanding boundaries is the fundamental in creating an environment where best business practices flourish in addition, maintaining the boundaries of the suppliers and consumers. In facts, creating boundaries improves business relationship through defining the boundaries from the time of manufacturing to the point of consumption.
Fourthly, designing a product is fundamental in the sense that, it improves efficiency along with effectiveness of the supply and demand chain. With no doubt; this enhances that the product sold to the end user are in good quality in the sense that, products improved substantially through better collaboration of channel partners. Fifthly, supply chain management manages supply and demand fundamental in price determination in the market. These follow in four basic laws of demand and supply that outline that, when demand increases and the supply remain unchanged there is a higher equilibrium quantity and price and vice versa. In conjunction with this, when supply increases and the demand remains unchanged, it lowers the equilibrium price as well as higher quantity and vice versa. During perfect competition, the supply is determined by the marginal cost in the sense that, each point of the supply curve answers all question of market power.
Components of supply chain management
Studies outline that, Supply chain management components are classified in four components that include the basics, the supply chain management integration and software along with the supply chain management of RFID solutions (Mentzer 5). Under basics component, the supply chain management ensures that the process of transporting goods from the manufactures to the consumer is done efficiently in a way that, the quality of the product distributed to the consumer aligns to the company standard. As a result, many companies are involved during production of the product in addition; less management control is exercised in the logistic operations.
Secondly, supply chain management integration aims to improve the aspect of trust through collaborating with various companies. In facts, supply chain management improves inventory visibility. In reality, information should flow continually for a flourishing integrated supply chain. If this works, it effectively enables everyone to attain the bets product flows. Researchers argue that, implementing the process of supply chain management integration enhances customer relationship, supplier relationship along with manufacturing relationship flow management (Blanchard 36). In this regard, Blanchard argues that, suppliers should work together with customers in order to ensure that products arrive at the right tome in the market. It is significant, for different films to work together to develop as well as, launch new products based on the time scheduled.
Thirdly, the supply chain management software enhances that, systems are good based on the information they hold. Therefore, lack of accurate information lead to inaccurate; forecast. With this in mind, when some people bypass the supply chain system and in stead, sideline the supply chain management, there wouldn’t be the actual happening supply of the chain. Fourthly, the RFID solutions for the supply chain management are concern with improving productivity and transporting of goods. In conjunction with this, this component is concern with securing the source of products in addition, effectively managing the supply chain. In other words, the RFID establishes solutions for tracking along with locating product flow to satisfy different requirements in distribution.
Benefits of supply chain management
Many firms find it challenging to focus on their business strategy particularly when the supply chain overwhelms their administration and operation such as warranty management and unwanted inventory growth can swallow up the intended internal resources. With no doubt; the supply chain management plays a core role in transforming the traditional linear supply to the adaptive network with numerous benefits such meeting customer needs through offering the common information framework, which support communication and partnership thus, the result better meeting consumer or the final user demands. With this regard, it is fundamental for any organization that needs to compete in the global market to effectively rely on the supply chain. With no doubt; supply chains extend the enterprise boundaries through collaborating with different business partners during the process of supply chain management.
Secondly, supply chain management enhances an ultimate provision of goods required by the final consumer thus, successfully implementing the just time stock. With this regard, it saves time for the final consumer who in this case would have walked in miles buying the product to the manufacturer. Thirdly, Mentzer (26) argue that, supply chain manage transform natural resources from raw materials to the finished product thus. The end consumer can effectively use the finished product that has fully been transformed into natural resources. Thirdly, the supply chain management increases competitive advantage in the sense that, it eases time for firms allocating goods thus increasing the passion for penetrating in the market, and as a result, increases competitive advantage through acquiring goods that may not be in the existing location where business exist. Fourthly, supply chain management enhances effective monitoring in areas of distributions such as safety and healthy. During production process, a company that involves ultimate production of cotton can effectively monitor health issues through monitoring the point of origin to consumption stage. When this is done, the manufacturing company can introduce various strategies to eradicate any problem that occur during production process.
Fifthly, supply chain management maintains quality of goods from the point of origin to the consumption stage. Sixthly, minimizes delays thus eradicating poor relationship along with lost business. For instance, in cases where supply chain is sidelined it slows down production lines thus, negatively impacting the company aspect by not satisfying the customer demand for their products for their company.
Issues of supply chain management
There are various issues that concern supply chain management. These issues include supply chain uncertainty and when selecting suppliers. With no doubt; the supply chain management experiences challenges of uncertainty of potential supplier, which as a result, may lead to not coming up with potential suppliers. Selecting suppliers is an issue that frustrates the supply management, and to some extent, the manufacturing company would incur losses.
Conclusion
In facts, supply chain management is ultimate goal of supply chain management is to distribute the products required by the final consumer. In reality, the supply chain management ensure that goods arrives in time to the consumers, enhance interaction of the suppliers and transform natural resources from raw materials to the finished product. As discussed in the paper, supply chain management experiences supply chain uncertainty, issues in selecting suppliers and evolution in purchasing. With this regard, this paper has discussed supply chain management through addressing its function, components, benefits and its issue.
Work cited
Mentzer, John. Supply chain management. New York: SAGE, 2001. Print
Blanchard, David. Supply chain management: best practices. New York: John Wiley and Sons, 2007. Print
Lambert, Douglas. Supply chain management: processes, partnerships, performance. London: Supply Chain Management Inst, 2008. Print
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