Improving Supply Chain Management - Essay Example

SUPPLY CHAIN MANAGEMENT Background Every business that runs an inventory control must have an elaborate supply chain for disseminating information and its products right from the process of manufacturing until when the products reach the ultimate consumers. Supply chain is the network of firms that are performing various processes that enhance the value of products and services that are produced to the consumers. The main objective that organizations implement supply chain management is to compress the time taken for products and services to move from the manufacturing process to the designated consumer, waste reduction, reducing the unit cost of the products and enhancing flexibility by ensuring the response time to consumer complaints is reduced as possible. Improvement is a term that is used to indicate positive progress in a certain process or undertaking. Improving the supply chain is optimizing the supply chain management process to ensure sustainability despite market dynamism (Chandra and Grabis, 2007). Improving the supply chain The business environment is very dynamic and thus, keeps on changing unpredictably according to prevailing factors that may be inherent in the market at any particular time. The changes that occur in the marketplace necessitate for a change in the manner in which business organizations conduct their processes (Leeman, 2010). Initially, firms would gain a competitive advantage in supply chain through only two dimensions that are quality and price of products. However, due to advancement in technology and increase in competition, efficient technology and recruitment and development of skills of the organizations’ staff have become some of the critical factors driving supply chains (Ivanov and Sokolov, 2010). For instance, better trained staff can process the orders of customers quickly hence saving them time. Moreover, efficient technology like internet is an imperative component of any supply chain from both the perspective of the suppliers and customers because it helps ensure all the four forms of utility are met that include time, place, form and possession like it has been established that a well-designed online system platform, which has the capability to allow customers to make purchases and orders online not only saves time for the business and the customers but also helps the business to penetrate into more markets, which finally translates to increased sales and profitability. Moreover, elaborate information systems enable firms to interact with their clients readily thus, minimizing the supply chain channel, in addition to, providing a platform where firms can target new customers easily from a centralized portal hence reducing costs (Leeman, 2010). For instance, ZARA a French company and Dell, a PC manufacturer giant, made substantial changes to their initial supply chain channels, which ensured their process of manufacturing, customizing and delivery does not take longer that one week resulting to the firms being reputable among their clients because their orders were serviced in a timely manner thus, enabling them opening up to the global market in a short span of time (Chopra et al., 2007; Lan and Unhelkar, 2006). Role played by technology and talent Technology is the driving force for almost every operation in the modern world. However, the rate at which technology is changing is so high that most business organizations cannot absorb it into their operations (Wang et al., 2007). Thus, in order to leverage from the benefits that come with efficient supply chain management effective application of technology in supply chain management needs to be undertaken to ensure the impact of technological advancement is felt in the business. If the technology is integrated into supply chain management, it will aid in time compression thus, ensuring the time between manufacturing and delivery of the products to the clients is minimized (Chandra and Grabis, 2007). Supply chain knowledge, on the other hand, is becoming more specific and technical thus necessitating firms training their employees on supply chain management to equip them with knowledge and skills to ensure they are able to discern emerging issues in the business arena and hence take elaborate measures to enable the business develop competitive advantage (Wang et al., 2007). Thus, in light of supply chain management knowledge firms must invest in talented professionals who are able to integrate technology and knowledge across the firm to ensure the supply chain network is designed in a manner, which yields the highest returns to the firm at the while ensuring its flexible and efficient (IRMA and Khosrow-Pour, 2006). Talent is what is in-built in employees apart from the knowledge they obtain through training and thus, is a very important aspect, which when coupled with professionalism can enable a business coming up with expert personnel capable of driving firms to high levels of success by integrating knowledge and technology in solving inherent and emerging issues (Peter, 2008). Guiding principles Principles that will aid in solving the aforementioned challenges include: firstly, the management of firms should be able understanding their businesses generally and their competitive edges to help them design the right policies and strategies enabling them develop competitive advantage (Koster and Delfmann, 2007). Secondly, firms should utilize the relevant tools and technology in designing their supply chains to ensure they are up to date with technological advancement to avoid having obsolete technology (Wang et al., 2007). Thirdly, promotion of cooperation and integration among the various elements of the supply chain of the firm ensuring the whole supply chain network is well coordinated to achieve common objectives. Finally the firms should be focused in employing talented personnel who are able to integrate knowledge and technology to eneble the firm stay always ahead of the competition (Ganeshan et al., 1999). Conclusion It is evident that a successful implementation of supply chain management is the defining factor of which firms will be successful in the market and thus command the largest market share. Thus, firms should ensure they employ talented personnel that can integrate knowledge with technology to ensure their firms obtain a competitive advantage in the market because successful implementation of supply chain management in the organization is a crucial factor to success of any business firm. References 1. Chandra, C. and Grabis, J. 2007. Supply chain configuration concepts, solutions and applications. [Online]. New York: Springer. [Accessed 20 November 2014]. Available from: http://public.eblib.com/choice/publicfullrecord.aspx?p=372826 2. Chopra, S. et al. 2007. Supply chain management: strategy, planning, and operation. Upper Saddle River, N.J.: Pearson Prentice Hall. 3. Ganeshan, R. et al. 1999. Quantitative models for supply chain management. Norwell, Massachusetts: Kluwer Academic. 4. Information Resources Management Association and Khosrow-Pour, M. 2006. Emerging trends and challenges in information technology management. [Online]. Hershey, Penn, Idea Group. [Accessed 20 November 2014]. Available from: http://www.books24x7.com/marc.asp?bookid=13270 5. Ivanov, D. and Sokolov, B. V. 2010. Adaptive supply chain management. London: Springer. 6. Koster, R. D. and Delfmann, W. 2007. Managing supply chains: challenges and opportunities. Denmark: Copenhagen Business School Press. 7. Lan, Y.C. and Unhelkar, B. 2006. Global integrated supply chain systems. Hershey, PA [etc.], Idea Group Publ. http://ctl.mit.edu/library/supply_chain_frontiers_54_4_features_improving_supply_chain[Accessed 20 November 2014]. 8. Leeman, J. 2010. Supply Chain Management: fast, flexible supply chains in manufacturing and retailing. Düsseldorf: Institute for Business Process Management. 9. Peter, C. 2008. Talent Management for the Twenty First Century. Harvard Business Review. 10. Wang, W. Y. C. et al. 2007. Supply chain management issues in the new era of collaboration and competition. [Online]. Hershey and London: Idea Group Publishing. [Accessed 20 November 2014]. Available from: http://www.books24x7.com/marc.asp?bookid=15313 Read More