The Effect of Changes in the Business Environment - Assignment Example

Many sectors have purchasing and supply departments that need professionals in order to carry out activities successfully. Secondly, successful purchasing and supply professionals receive better salaries and rewards from organizations. Finally, the skills required for a successful career in purchasing and supply can be easily learned in class.

            Seven ways in which supply management has an impact on a firm’s sales are associated with the following activities that integrate the business management process across the supply chain. Customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development and commercialization, and management of returns, all of which determine market demand and production capacity of an organization.

Support for strategic supply chain management has to come from the top management of an organization because of several reasons. Firstly, strategic processes require decisions from the top management because they relate to the main objectives of an organization. Secondly, strategic supply chain management involves the application of various tactics that have to be authorized by the top management. Lastly, strategic supply chain management incorporates operational decisions that also have to be directed by the top management because they relate to company objectives.

Supply chain management position is important in organizational structure for two major reasons. To begin with, supply chain managers ensure that customer services are boosted hence increasing an organization's sales. Secondly, supply chain managers ensure that an organization enjoys high profits by ensuring that product supplies are made quickly and using the most cost-effective means.

Many organizations use a hybrid approach to decision-making authority in their supply management in order to make informed decisions. In this case, the supply management authorities evaluate different alternatives available for organizations and then decide on one that ensures major objectives are attained.

Cross-functional teams are made up of stakeholders with different skills within an organization. Therefore, individual members can contribute different ideas that can be used to enhance the value of products within an organization. In addition, because of having different expertise, individual stakeholders can be able to identify areas that need improvement within a product, something that may not be easy if only one person is tasked to do so.

Engineering product specifications can affect the price of the product significantly because most engineering products are made with ‘perfect characteristics’ that can facilitate their effective use. Therefore, products that do not meet the desired characteristics may not fetch good prices in the market.

Products that cost more may save the company money overall especially if they are of superior quality. Cheap and poor quality products may necessitate many additional purchases hence becoming more expensive in the long run as compared to expensive but superior quality products.