...In today’s business, supply chain is greatly recognized as one of the most important thing in order to effectively satisfy customers’ needs. Supply chain management is managing the flow of information and materials from the first supplier to the end customer (Fawcett et al, 2007). But Akkermans (1999) said that in reality is that companies do not engage in such extensive supply chain integration. Supply chain management is important to be established for all firms without exception in order to meet the customers’ needs and it is consist of all parties involved in fulfilling the needs (Chopra and Meindl, 2007). Supply chain management is equally important for firms other than manufacturing firms because all firms has the common objective which is to create great value of goods or services to customer with lowest price possible. Not only critical for manufacturing firms like automotive firms, but for other firms as well, for example supermarket or restaurant. Manufacturing firms and other firms are actually similar; they have suppliers and customers. For every business, it is important to make a strategic decision and supply chain management helps them to make it. Supply chain can help a company to determine their selling product and match with the strategy they have to do to create competitive advantages. For firms like Wal-Mart, it is important to apply supply chain management since they have to source the products from the supplier and provide service to sell the products...
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...purchasing and supply chain management in an organization. Over the years, the role of purchasing and supply chain in an organization has continued to evolved, changed, and developed in response to changes witnessed in business environment. The increasing numbers or world-class competitors in local and international trades are a direct driver of increase in purchasing and supply chain roles and demands. Many management scholars have defined the notion and significance of supply chain management in detail across the globe. Many times, theoretical definitions of what purchasing and supply is are provided. But This term paper will firstly, suggest that purchasing and supply chain management is a developing field that constantly changed based on happenings in business environment. And secondly, suggest that individual firms’ purchasing and supply chain is base on such firms’ type of business, size, and mission. Evolution of supply chain management. Supply chain management involves the management of all activities in order to satisfy the ultimate consumer. It covers almost all business activities, including marketing, manufacturing (or service provision) purchasing, logistics and arguably is an all-inclusive concept that create a world-class culture and continue economic development. (Quayle, Michael 2006) In a nutshell, purchasing and supply chain management is a series of interwoven activities that cut across every departments of on organization. Purchasing and supply chain managements’...
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...Title: Strategic Supply Chain and Logistics Assignment Title: ‘Concepts & IT Effectiveness of Supply Chain Management and Logistics Improvement’ Name: Nazmul Haque Sumon Course name: PGD Student Id: OCL 0150 Tutor’s Name : Mr Harry Lindsay OPAL COLLEGE LONDON TABLE OF CONTENTS Task:1 1.1 explain the importance of effective supply chain management in achieving organisational objectives 1.2 explain the link between supply chain management and business functions in an organisation 1.3 discuss the key drivers for achieving an integrated supply chain strategy in an organization 2.1 evaluate the effectiveness of strategies used by an organisation to maintain supplier relationships the organization TASK :3 4.1 explain the role of logistics in supply chain management in an organisation 4.2 evaluate procurement practices in an organisation 4.3 discuss the factors that must be considered when improving logistics and procurement practices in an organization 5.1 plan a strategy to improve an organisation’s supply chain 5.2 assess how a supply chain improvement strategy will benefit overall business performance in an organisation 5.3 explain how barriers will be overcome in an organization when implementing a supply chain improvement strategy Task : 1 Introduction: supply chain management operates at three levels. These are strategic, tactical and operational strategic level, company management makes high level...
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...An Introduction To Supply Chain Management Commerce Essay The term supply chain management was first coined by a U.S. industry consultant in the early 1980s. However, the concept of a supply chain in management was of great importance long before, in the early 20th century. Supply chain management is the word coined for the effective management of all the partners and the information disseminated between them. Take an example of Dell computers, Micheal Dell cant built his business just by selling the computers to the customers, but he need to see the complex problems of the customers and solve these problems through just in time manufacturing of the product, then how to minimize the wastage in the production then to evaluate what customers are doing and how they can make their production efficiently (NYT 2010), as the manufacturer cannot sell the product at the higher prices than the competitors are selling but through effective management you can actually reduce the cost, so concisely he need to be a master of supply chain management. Before supply chain management there was effective inventory control system exist but due to some pit falls like; no supply chain metrics, inadequate definition of customer service, , organizational barriers, inaccurate delivery status data, simplistic inventory stocking policies, inefficient information systems, ignoring the impact of uncertainties, and an incomplete view of the supply chain (Teigen 1997). There is a need for another system...
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...HOW SUPPLY CHAIN MANAGEMENT HAS CHANGED THEY WAY WE DO BUSINESS Marlie A. Selke Embry Riddle Aeronautical University WW LGMT 536 – Purchasing for Logistics & Supply Chain Management Professor Dr. Mohammed Arif September 30, 2013 TABLE OF CONTENTS Abstract 3 History of Supply Chain Management 4 Why is Supply Chain Management Important to Business 5 Innovation 7 How to Maintain a Competitive Advantage 8 Skill Set Requirements 11 Future of Supply Chain Management 13 Conclusion 16 References 17 TABLE OF FIGURES Figure 1.1 Creating Additional Value by Thinking Differently About Categories 14 Abstract This research paper addresses the effects that supply chain management has on businesses. Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Supply chain activities include everything from product development, sourcing, production, information systems, as well as logistics. An effective supply chain management works with cross-functional teams (e.g. requirements form marketing or engineering) to achieve organizational goals through effective planning and management. This paper will take a look at the history of supply chain management, discuss why it is important to business, explore the latest innovations, discuss how to maintain a competitive advantage in a changing environment, address the required supply chain management skill set requirements...
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...THE SUPPLY CHAIN MANAGEMENT CONCEPT 1. Discuss the differences between supply chain and supply chain management. A supply chain refers to the activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows. Supply chains are not a new concept in the sense that through the years organizations have been dependent on suppliers and organizations have served customers. Although any organization can be part of a supply chain, supply chain management requires overt management efforts by the organizations in the supply chain. Moreover, supply chain management cannot be successful unless the participating companies adopt an enterprise-to-enterprise perspective. 2. Discuss the SCOR and GSCF models of supply chain management. The SCOR model identifies five key processes—plan, source, make, deliver, and return—associated with supply chain management. Each of the five processes indicates the important role of logistics in supply chain management. There are eight relevant processes in the GSCF model—customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development management, and returns management. Logistics also plays an important role in the supply chain processes in the GSCF model. 3. What are four key attributes of supply chain management? The chapter...
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...Supply Chain Management There are many aspects of business today. The most important and most expensive is not manufacturing and production cost. Today the most expensive aspects of any product is getting the product to the consumer and make sure that at all time the customer can purchase the product without delay. To consider the fact the forty five percent of purchases that are not necessary but spontaneous; those product must be seen and readily available to purchase. Even the ones that are necessary must be seen and ready for purchase or it may result in a poor overview of the company and may result in the loss of consumer support. To make sure that this does not a cure a company must have in place a very well managed supply chain. For this to happen the company must first understand what is the definition of a supply chain the six important aspects, certain software and of course some knowledge of global supply chain management. If there is an interest in becoming a supply chain manager there are certain steps in achieving that goal. This information might help not only ones professional career but also the company’s overall level of competitiveness in today’s ever changing market place In today’s complex business world, an organization’s overall success is based on the efficiency and effectiveness of its supply chain. The organization’s competitive strength relies on two main facets, a firm’s products and the processes that provide products to customers. An effective...
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...‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation. During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies. The first argument is that they are not completely the same terms in operations because of the scope where utilized are different. Firstly, according to Murphy & Wood (2008), CSCMP states that the supply chain management includes all activities about planning and management, such as procurement...
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...Finance Instructor Supply Chain Management June 18, 2012 Supply Chain Management Business has become increasingly competitive due too many factors. Business has become increasingly global and many companies are diversifying to enter new markets. A factor which companies have become increasingly aware of is supply chain management. A supply chain connects supplies with customers (Chin, Lie, Tsai, 2012). Supply chain management has become an important for companies to evaluate and research because improper management can lead to can hinder performance. Therefore, increased evaluation and research in proper supply chain management is essential for businesses to maintain a competitive advantage. This paper is going to analyze supply chain management a retail perspective to new learning perspectives of modern businesses. Issues For many years supply chain managers had difficulty determining the optimal amount for their inventory levels (Chin et al, 2012). For example, in Wal-Mart the company has to determine how much inventory to include in stores in comparison to a just in time approach. Research has indicated that improper supply chain management can lead to inefficient company performance (Asamoah, Annan, Nyarko, 2012). Therefore, improper evaluation of inventory can increase costs for the company and decrease sales to lack of inventory. For example, typically businesses would replenish inventories when the inventory is low. The supply chain manager would order...
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...Succeeding in Supply Chain Management There are a number of students who see the beauty in supply chain management. In order to achieve a Bachelor’s in Supply Chain, students have many obstacles to cross.Students must first realize, what supply chain management is all about. Supply Chain Management shows students the life cycle of a product. This includes different stages like the introduction, growth, maturity and decline stages. The process starts from extracting raw material and producing it to the final good. The process of supply chains sounds simple, however there are many steps to take into account. The steps include planning, purchasing,production,transportation, storage & distribution. Supply Chain is the part of the business that “glues” the different parts of the organization. Students majoring in this field must first plan out a career pathway, gain experience through internships and complete a degree in Supply Chain Management if they plan to reach their goal. Review One of the problems faced by students is planning out a career pathway. Choosing a specific career pathway for a college student can be difficult, because students have difficulties figuring out where they would want to be in the next 6 to 7 years. In the world we are living in today, there are so many fields that could that students could excel in. As students have limited knowledge in these various fields, this could confuse them. The second problems students could face is gaining internships...
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...JOURNAL OF BUSINESS LOGISTICS, Vol.22, No. 2, 2001 1 DEFINING SUPPLY CHAIN MANAGEMENT by John T. Mentzer The University of Tennessee William DeWitt The University of Maryland James S. Keebler St. Cloud State University Soonhong Min Georgia Southern University Nancy W. Nix Texas Christian University Carlo D. Smith The University of San Diego and Zach G. Zacharia Texas Christian University “Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materials, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for anticipating the effects of decisions, policies, organizational forms, and investment choices.” (Forrester 1958, p. 37) Forrester introduced a theory of distribution management that recognized the integrated nature of organizational relationships. Because organizations are so intertwined, he argued that system dynamics can influence the performance of functions such as research, engineering, sales, and promotion. 2 MENTZER, DeWITT, KEEBLER, MIN, NIX, SMITH, AND ZACHARIA He illustrated this phenomena utilizing a computer simulation of order information flow and its influence on production and distribution performance for each supply chain member, as well as the entire supply chain system. More recent replications of this phenomenon include the “Beer...
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...1.1 Explain the importance of effective supply chain management in achieving organizational objectives? Importance of Supply Chain Management In the ancient Greek fable about the tortoise and the hare, the speedy and overconfident rabbit fell asleep on the job, while the "slow and steady" turtle won the race. That may have been true in Aesop's time, but in today's demanding business environment, "slow and steady" won't get you out of the starting gate, let alone win any races. Managers these days recognize that getting products to customers faster than the competition will improve a company's competitive position. To remain competitive, companies must seek new solutions to important Supply Chain Management issues such as modal analysis, supply chain management, load planning, and route planning and distribution network design. Companies must face corporate challenges that impact Supply Chain Management such as reengineering globalization and outsourcing. Why is it so important for companies to get products to their customers quickly? Faster product availability is key to increasing sales, says R. Michael Donovan of Natick, Mass., a management consultant specializing in manufacturing and information systems. "There's a substantial profit advantage for the extra time that you are in the market and your competitor is not," he says. "If you can be there first, you are likely to get more orders and more market share." The ability to deliver a product faster also can make...
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...that is composed of manufacturers, supply chain partners, distributors and financiers who try to stay financially independent but work closely with each to ensure each other’s success. In Japanese, the word keiretsu means “group.” In business sense, the word is sometimes used as another word for partnership or alliance. Using this strategy will help your company by assisting in establishing stable, long-term partnerships, which in turn will help them to focus on core business requirements needed to assist with maintaining your products and production in several different aspects. Because the product that is being developed here is an intricate electronic device, there will be several partnerships that we will develop over time such as parts distributors and other components of our products (http://www.investopedia.com /terms/k/keiretsu.asp#axzz2IwCjpAVn). Using this strategy will also help us with the management of our finances through assistance with other departments and entities that specialize with financing. Even though this strategy is meant to sustain stability, this same stability can sometimes become an issue and cause problems with us being the manufacturer by not responding quickly to changes in the economy, culture or technology. Typically companies using this strategy organize around their own trading companies and banks. Each company using the keiretsu strategy is capable of controlling nearly every step of the economic chain in a variety of industrial, resource...
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...Supply chain integration: internal integration, supply integration, customer integration. Different types of supply chain management. * Product quality * Product innovation Effective supply chain integration (II, SI and CI) leads directly to a higher level of PQ and PI. helping practitioners to select which supply chain integration levels are most appropriate for their particular situations While supply chain integration is crucial to SCM, some doubts have been expressed concerning the applicability of supply chain integration practices. Firstly, the literature is usually focused on either the supply or demand side, with most emphasis upon a variety of topics on the supply side only (Tan, 2002). Only a few studies have begun to consider integration on both the supply and demand sides. For instance, Frohlich and Westbrook (2001) explored the relationship between the degree of supply chain integration And Firm performance improvement. Rosenzweig et al. (2003) also investigated the effects of supply chain integration intensity and performance. Secondly, the literature also states that different aspects of supply chain integration may be important under different circumstances. Frohlich and Westbrook (2001) pointed out that supply chain integration practices vary depending on the type of strategy a firm employs. Hence, there is aneed for more research to investigate the relationships between various supply chain integration practices and particular types of competitive...
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...and supply management has become increasingly important. Over the past years, as a discipline, purchasing and supply management has largely changed many companies. The significance of supply chain management is mainly due to the large cost on supply chain. ()On average, fully 70% of a firm’s sales revenues are spent on supply chain-related activities from material purchases to the distribution and service of finished products on the final customer. Other than that, there are several factors resulting in the evolution of supply chain management. First of all, in order to gain more market share, it is vital for companies, especially for multinational companies, to focus on building stable and effective supply chain as each segment of supply chain are likely to influence the products or service of companies. Moreover, the development of communications and transportation technologies, such as mobile communication and Internet, have forced the evolution of supply chain management. The purpose of this essay is to explore the influence of supply chain management on companies. Also, both sustainability and risk management are crucial in supply chain management, Objectives Through journals, monographs and related theories and articles on the website of the search, organize and summarize, discussed the importance of the supply chain in the contemporary business. In addition, based on the case of Adidas, the most important aim is to provide an analysis of its purchasing supply chain...
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