Supply Chain Management - Essay Example

Supply Chain Management College: May 9 Supply Chain Management Companies around the world have discovered a new source of competitive advantage in terms of competition and reduction of inefficiencies. Supply chain management is the source of competitive edge and its role is bringing products to the market while ensuring that customers are satisfied. It brings integration of various processes such as production operations, buying goods and services, transportation and distribution. A successful supply chain management programs ensures these processes are integrated and coordinated into a process that is seamless (Trkman, & Groznik, 2009).

However, there are many challenges that companies face while trying to improve supply chain management. One big challenge that they face is customer service, which means that ensuring that the products that a customer want are delivered at the right place and at the right time is a huge challenge for companies. This is made worse by the fact that the number of customers keeps on rising and meeting their needs is the only way they can maintain them because of the high competition in today’s market (RFID STUDY GROUP at Pennsylvania State University, 2006).

The other challenge is cost control; this is because companies in order to improve their supply chain management have to find a way to control costs. These are hard tasks considering their operating costs are under a lot of pressure. These pressures that cause an upswing in operating costs rise from, regular technology upgrades and advancements to keep up with the competitors, global customers who require goods to be shipped to them, expansion in costs of healthcare and constant increase in commodity prices.

These pressures are not under companies’ control and, therefore, controlling them becomes a very hard task that leads to operating costs of supply chain management being high.The other challenge is risk management and planning since supply chain management requires a lot of good planning and the right strategy for managing risks involved (W.K, P, & K.H, L, 2000). This is because this process has to be assessed periodically and its design has to keep on changing to ensure that market changes are accommodated.

Companies have to identify risks and quantify as well as controlling them. There are constant changes in supply chain management such as introduction of new products to the market, new acquisition, new intellectual property to be protected, as well as maintenance of assets and security of shipping products. All these have to be planned and integrated prior to the process to ensure that it can be improved making supply chain management planning a headache to many companies.In order to improve this process, departments within the companies have to work together in trying to make the process work.

This means that they must be under constant communication, and their performances should meet what is expected of them. Trust in these departments is a challenge that various companies face while trying to improve supply chain management. The last challenge that companies face is maintaining talented workforce (Storey, et al, 2006). Experience managers of supply chain retire at some point and leave their positions for others to fill. Companies have been forced to train their own workforce to ensure that they get the best managers to ensure that supply chain process is improved.

Supply chain managers need to be of high competence and well understanding of the key competencies that supply chain managements require. Companies should get personnel with the required qualifications, are natural leaders, and have the ability to develop future talents.In conclusion, it is clear that companies have various challenges in improving supply chain management. However, the most important challenge is setting goals and achieving them in these economic times when the market is so unstable.

Companies have to assess everything before they engage in supply chain management so that they can have an effective and efficient process.ReferencesTrkman, P., & Groznik, A. (April 12-13 2009,). Current issues and challenges of supply chain management. Accepted Refereed Papers.RFID STUDY GROUP at Pennsylvania State University. (November, 2006). Supply Chain Management - Challenges in RFID Enabled Supply Chain Management - Radio frequency identification devices enable firms to improve supply chain activities if they mine and monitor the flood of data Quality Progress, 39, 11, 23.W.K, P., & K.H, L.

(January 01, 2000). Value challenges in supply chain management. Logistics Information Management, 13, 3, 150-155.Storey, J., Emberson, C., Godsell, J., & Harrison, A. (July 01, 2006). Supply chain management: theory, practice and future challenges. International Journal of Operations & Production Management, 26, 7, 754-774.