Supply Chain Management (operations management)2 - Assignment Example

Supply chain Management Introduction Supply chain management articulates on the management of all activities that take place from the extraction of raw material to the point they are delivered to hands of the end users. Supply chain management plays different professional activities in all sectors of an organization. Supply chain management is the most effective tool in an organization as it does not only involve the supply elements alone (Ross, 2006). It stretches to all that information that accompanies the movement of the products to the consumers such as, order status information and payment schedules.

In order to maximize revenue, an organization has to consider the net worth of a product to the customers and what the supply chain tends to accomplish is to get the exact requests of the consumers. Supply chain management is basically concerned with issues of who is involved, cost and service in addition to integration of such kind of services (Jacoby, 2010). Supply chain strategies are directly affected by other chains available within the organizations. This includes an activity that comes up with the introduction of new products to the firm.

Supply chain should also be integrated with other goals of the organization like the ones which leads to maximization of profit margin thus giving a lot of returns.Supply chains needs to be designed to eliminate unnecessary uncertainty and risks at all levels of production. Some of the risks that may come in the course of production include the risks associated with machines, logistics amongst others. Organization can optimize supply chain management to improve results and remove obstacles in several ways such as the global optimization.

Having a complex network, the supply chain management have so far been developed to enable integration of products from the point it comes from the supplier to the point delivery is done. A good example is whereby an organization can be able to get a supply and directly deliver it to consumer without having to actually stock it and then goes ahead to make payments through electronic money transfer.Supply chain is considered dynamic in nature. Customers’ demands and suppliers’ potentiality will always change after sometimes.

This will in turn leads to evolution in supply chain relationships. For instance, when a customer potentials increases, this will impact more pressure on the supplier to increase the rate of productivity in quantity and quality.Organizations should be able to project any risk that might come in the line of production of commodities to the point it get delivered to the consumers. In case of a risk, an organization should be able to counter attack by giving the sufficient securities to avert occurrence of any nature.

There should also be a consideration on functionality and delivery process (Koster 2005). This would enable foreseeing the future of the product. Firms should not limit themselves on their current methodologies. Instead, much research should be done on other possible new outcomes. Distribution strategy is another challenge faced by most organizations since firms are often not aware on how to decentralize or centralize their distribution. For such a circumstance, most organizations need to collaborate with allied firms to avoid unhealthy competitiveness.

ReferencesRoss, D. (2006). Competing through supply chain management .Boston: Kluwer Academic Publ.Jacoby, D. (2010). Guide To Supply Chain Management. London: Profile.Koster, R. (2005). Supply chain management : European perspectives Copenhagen : Business School Press.