Supply Chain Management Processes - Coursework Example

Mid PAPER: SUPPLY CHAIN management By Name Course Instructor Institution City/State Date Mid PAPER: SUPPLY CHAIN management Introduction Supply chain is defined the progressions from the actual raw materials to when the finished good is consumed connecting between suppliers, consumer and companies. SCM (Supply chain management) has a huge influence on how many companies see themselves. Generally, organizations see themselves as having suppliers and clients. In the past, an organization did not evaluate the importance of either its clients or suppliers in being a partner. In various sectors, every organization was in a stiff competition with its clients and suppliers, with fear that they would be exploited by them. In the period between 1760s to 1970s organizations started realizing the importance of having the main role that was mainly towards serving their clients (Fredendall and Ed 5). The phenomenon of internal consolidation was mainly termed as material management or materials logistics management. Organizations that employed the materials management framework consolidated their distribution, operations and purchasing roles to increase consumer services while reducing their costs of operation. The organization that integrated these frameworks effectively they actually improved their businesses. However, it worth noting that organizations were continually faced by constrains from other segments of the business that were not consolidated like function of product development. Additionally, organizations faced constrains from unresponsiveness of either their suppliers or clients. These hindrances blocked the organizations from reacting rapidly to market changes that slowed their efforts to offer new wants of their clients. However, between 1980s and 1990 numerous businesses continued to increasingly integrate functions of material management (Fredendall and Ed 5). When other companies realized that the firms that had completely adopted this integration had expanded their earnings, more companies started to employ practices of supply chain management. The strength of supply chain management is the capability it has to make clients part of supply of services and goods offered by the supply chain. Supply chain Management processes An effective supply chain management needs a metamorphosis from focusing on individual components to focusing on consolidating functions into main processes of supply chain. In the past, both downstream and upstream components in supply chain have worked as unrelated functions getting erratic information flow over a period of time. In the contemporary business environment, driving a consolidated supply chain management needs a seamless flow of information that aids in developing efficient flows of products (Lambert and Martha 72). The client is the main center in the supply chain management. Attaining an effective customer oriented mechanism is needed to process information in a timely and accurate manner for rapid response. Therefore, systems should be flexible and quick in order to be able to respond to changing client demands. Containing uncertainties in supplier, manufacturing processes and client demand performance re vital to efficient supply chain management. Most organization have concluded that improving the flows of products is not achievable without employing a process style to the business. There are various main supply chain processes as established by the GSCF (global supply chain forum) members. They are customer relationship management, management of customer service, management of demand, order fulfillment, management of manufacturing flow, procurement, development of product and commercialization and returns process. Customer relationship management The initial focus in a move to integrating supply chain management is to point out main clients or group of clients that the firm focuses as vital to its mission of accomplishing a successful business. The management of customer relationship offers the framework on how interaction with the client is built and improved (Croxton 14). Service and products agreements indicating the performance levels are developed with these main groups of clients. Teams on customer service cooperate with clients to continuously point out and remove demand variability sources. The evaluations of performance are carried out to evaluate the degrees of services offered to clients as well as profitability of client. Process of Customer service management Customer service offers a major customer information source. It turns out to be the main area for proving the service or product agreement. Client service offers the client with instantaneous information on specified dates of shipping and availability of the product via interfaces with the firms’ distribution and production operations. Eventually, the group of customer service should be in a position to help the client with applications of products. Demand management process HP’s research in field of supply chain management shows that inventory is either variability-driven or essential driven. Variability of products happens because of variation in demand, supply and process. Essential inventory involves goods in the channel progressing from one location to the other and work-in-process during manufacturing. It is important to note that customer demand is to the biggest extent the main source of variation and this is due to uneven patterns of orders. Considering the variability in client ordering, management of demand is a pivotal role in having an effective supply chain management. The process of demand management should balance the needs of client with the supply ability of the firm. A section of demand management includes endeavors of determining when and what clients will buy. An effective system of demand management utilizes key client data and point of sale to lower uncertainties and plans of production should be planned on basis of enterprise-wide. Therefore, multiple routing and sourcing options are evaluated at the point of receiving order that make it possible production plans and market needs to be articulated on firm-wide basis (Lambert and Martha 73). Where applications are highly advanced, production rate and customer demands are harmonized to manage portfolios worldwide. Customer order fulfillment process One of the major aspects in developing efficient supply chain management is ability to fulfill client requirement dates (Croxton 20). It is paramount to attain improved rates of order-fill either on order or line item basis. Undertaking the process of order fulfillment in an effective manner call for an integration of the organization’s transportation, distribution and manufacturing schedules. It is paramount to develop relationships with members of the main supply chain and carriers to cover requirements of the client and lower sum cost of deliver to the client. The purpose is to establish a continuous and smooth pipeline from the suppliers to the firm and also on its diverse segments of clients. It is paramount to note that process of strategic order fulfillment take into consideration marketing, logistics and manufacturing requirements in designing network of distribution. Manufacturing flow management process The process of manufacturing in companies with make-to-stock system used to manufacture and supply goods to the distributors with reference to historical predictions. Goods were produced in the factories with an aim of meeting schedules. In some cases, the undesired mixing of goods was made leading to unwanted inventories, increased inventory carrying cost, product transshipment and markdowns. When supply chain management is applied, goods are produced with an aim of meeting needs of the client. Hence, the processes of manufacturing are needed to be flexible to cope with changing environment in the market. This calls for a flexibility to undertake fast changeover to suit bulk customization. Processing of orders is done on basis of JIT (just on time) in small lot quantities. Required dates of delivery drive the priorities of productions. Client planners coordinate with manufacturing planners to come up with effective plan for every segment of customers. Alterations in the flow of manufacturing process result to reduced cycle periods, leading to effective responsiveness to clients. Procurement process Well laid out plans are put into place in conjunction with supplier to back the process of manufacturing flow management and research on new product. In this endeavors, suppliers are grouped with regard to various factors such as criticality and contribution to the firm. Sourcing is managed on international basis where firms have operations throughout the world. When a strong and long-term relationship is establish between small group of suppliers, the result is a mutual relationship since every side rip benefit. Obtaining input of the supplier in an early stage helps to shorten period by obtaining the needed working together between the supplier, purchasing and engineering before finalization of the design. Production and development and commercialization It is important to be cognizant of the fact that if the new product is the lifeline of the company, then development of product is the lifeline of the firm’s new product. Suppliers and customers must be part of this process of product develop with an aim of shortening time to taken to reach the market (Lambert and Martha 74). When life cycle of the product is short, the appropriate product should be developed and put in the market in shortest period possible so as to retain competitiveness. Management in the process of development and commercialization should cooperate with management of customer relationship to point out unarticulated and articulated needs. Additionally, management should be in a position to select suppliers and materials in line with procurement. Finally, management should be in a position to establish technology of production in manufacturing flow to make products and incorporate into the appropriate supply chain flow for the market/product mixture. Returns process Efficient returns process is essential division of SCM. While several organizations abandon the this process since managers do not have faith in its importance, they should appreciate that it can help the business to achieve a competitive advantage that is sustainable for a long period of time(Croxton 20). Process of managing returns in a firm gives similar opportunity to attain a prolonged competition advantage as managing chain in perspective of outbound. In various nations across the globe, this is considered as an environmental aspect although it might not be the case always. Appropriate returns process management allows in pointing out of productivity enhancement opportunities and eureka moment in projects. Conclusion In conclusion, it is important to note that an effective supply chain management needs a metamorphosis from focusing on individual components to focusing on consolidating functions into main processes of supply chain. Additionally, it can be appreciated that management in companies is continuously becoming of the cognizant of the fact that the effective management and integration of major processes of business along supply chain members have major influence on the success of the company. Supply chain management is made up of three elements that are closely related and they include the management component, the processes involved in supply chain business and network structure of the supply chain. The global supply chain forum has put forward eight elements of supply chain management that should be put into practice in the company they should be interconnected with main members in supply chain. The processes as captured in this paper are customer relationship management, management of customer service, management of demand, order fulfillment, management of manufacturing flow, procurement, development of product and commercialization and returns process. Works cited Croxton, Keely L., et al. "The supply chain management processes." International Journal of Logistics Management, The 12.2 (2001): 13-36. Fredendall, Lawrence D., and Ed Hill. Basics of supply chain management. CRC Press, 2000. Lambert, Douglas M., and Martha C. Cooper. "Issues in supply chain management." Industrial marketing management 29.1 (2000): 65-83. Read More