The ultimate objective of any effective supply chain management system is to decrease inventory and to minimize expenses. Supply chain management flows of the firm I work for are divided into three major flows: the material flow, the information flow and the finances low.At my place of work, a lot of materials are used especially stationery, computing equipment, construction materials and equipment. When a need has been identified by an individual, the individual is expected to raise the issue with the department with which he or she works. The department’s representatives analyze the need and the alternative products that can be purchased to fulfill the need. The department also may make suggestions as to which organizations can supply the said products. An inventory is taken of the products available with an aim of ascertaining the need. Once this is done, the issue is forwarded to the purchasing office which is charged with the responsibility of sourcing for potential suppliers. Sourcing When sourcing for suppliers, the purchasing department considers a number of factors. One of the factors is the reliability of the organization and the quality of its products based on research or past supply history. In the event that the product to be bought is a service that does not fall under its core activity, the company usually opts to outsource to reputable organizations which focus on providing the said service. The purchasing office with the approval of the management may place a tender so
as to qualify a supplier based on market competition.