Supply chain management is the strategic and systematic coordination of traditional businesses and across various businesses purposed to improve general performance.
The supply chain comprises all parties involved directly or indirectly by fulfilling consumers’ requests. Moreover, a supply chain involves manufacturers, warehouses, transporters, suppliers, customers, and retailers. A supply chain involves fulfilling the customer’s desires from the start of the organizations like manufacturers. A supply chain has the following essential stages:
- Customers
- Retailers
- Wholesalers
- Manufactures
- Components or suppliers of raw materials.
Contents
- Why Supply Chain Management?
- Objective Of Supply Chain
- Processing View Of Supply Chain Management
- Cycle View
- Push view
- Supply Chain Management in Global Environment
- Drivers Of Economic Globalization
- Role Of Sales Function in Supply Chain Management
- Personal Selling in The Supply Chain Management
- Information Technology in Supply Chain Management
- The Bottom Line
Why Supply Chain Management?
Globally, corporations have turned to the sources for suppliers. The organization has forced its respective management to look for effective ways for coordinating the fluent flow of goods and services in the organization.
Distribution channels and some companies compete vigorously today on the time and quality of their products. Having a product with no defect is not a competition but rather a requirement for a company to be in the market. Customers want goods to be constantly delivered on time while bearing no damage. Each of these requirements has a close call to the distributors and suppliers.
Increased perf4omamnce and globular orientation based on the daily competition combined with economy and rapid technology contributes to market uncertainty. Such uncertainties need flexibility on individual companies and distribution organizations. That will, in turn, need high flexibility in the supplier channels relationship.
All the above situation makes supply chain management crucial to many companies.
Objective Of Supply Chain
The supply chain’s general objective is to maximize the overall value of goods generated. That value differs from one of the final products. It fulfills the customers’ desires – the worth of a certain product. The value of a good is greatly connected to the distribution and supply chain that Thes generated from customers and over the ll cost cuts across the supply chain.
Processing View Of Supply Chain Management
The Supply chain process occurs in two steps:
- Cycle view
- Push view
Cycle View
The processes in this stage are further divided into a range of cycles. Each is performed within the interface of two successive stages in the supply chain. Cycle view processes include:
- Customer requirement cycle
- Replenishment cycle
- Manufacturing cycle
- Procurement cycle
Push view
The process is divided into two categories, but it depends on whether it responds to the customer’s order or customer order anticipation. This process is initiated by customer orders or customers anticipation.
Supply Chain Management in Global Environment
In recent years, business globalization has received a lot of press. The global competition pressure is cited as the primary driver for great customer demand for high-quality services and products. That has caused business organizations to take upgrading moves like the implementation of JIT – just-in-time and QR- quick response management. They also undertake improvements in business engineering, management policies, and supply chain management. All these measures are for enhancing their competitiveness in business. Also, business firms look for opportunities or suppliers that will provide them with high-quality sourcing opportunities. The increased competition has resulted in many trends in the business world.
When business firms increase their engagement in the global economy, developing an understandable supply chain management gives opportunities in the global context. This Opportunity is not easy to come by, and it’s crucial for any person doing business.
Drivers Of Economic Globalization
Due to some factors, the world’s global economy has increased over the last several decades. As a result, many firms have changed considerably due tit ye competitive environment. The drivers of globalization include tariffs, improving information technology, transport communication., economic regionalism, market competition, and globalization products.
Supply chain management is a mechanism m that allows a business firm to respond to the changes in the business environment. It does so by working collaboratively with partners in the supply chain. A business form can quickly understand the environmental changes in customer response and requirements. When a business firm researches ways to improve its competitiveness, the supply concept becomes important. A firm shares risks with the supply chain partners, thus improving its performance in a volatile and competitive market.
Role Of Sales Function in Supply Chain Management
In recent times, the salesperson’s role has been changing drematiclle7 with the old ways being out of the book. Although sales organization focuses mostly on prepurchase activities, the supply chain plays a crucial role. Companies adopt the supply chain, noting that the functional areas need a change in their old ways of conducting business transactions. That has led to including supply chain management in part of their plans as a substitute.
Personal Selling in The Supply Chain Management
Personal selling plays a critical role in implementing supply chain management behaviors and activities. For the supply chain to get value from the sales force, it must adopt a new orientation, personal logistics, and gain another supply chain management expertise and skills.
Information Technology in Supply Chain Management
A good supply chain management can make strategic decisions based on the provided data with the help of an efficient information technology system. A supply chain management cannot work if there is effective information technology. Without information at the right time and place, no purchase will be made. Supply chain management is only deemed complete when there is efficient information, suppliers, and carriers. so, business companies should have a well-strategized information technology so that their supply chain can rn smoothly
The Bottom Line
With the advancement in technology, the world is shrinking as every day passes. The customers’ expectations rise every day they wake up; hence, some business companies are brought to an uncertain environment. Under such hostile environments, business companies found upgrading their supply chain. In the 22nd century, business companies will have to start using information technology to develop their business strategies. There must be a reliable information system so that the supply chain can run smoothly. The concept of building supply chain management on functional integration is supposed to be catalyzed by information technology. For instance, you could try two-way communication and note the benefits.