SCM and Logistics Issues - Coursework Example

Section/# SCM and Logistics Word Count: Total Assignment 2068 words Introduction: Logistics and supply chainmanagement invariably focus on the way in which a business is able to continue to elicit a level of profitability within the current or future market. As a function of this extraordinarily broad and somewhat nebulous definition, it must be understood that the majority of ongoing research in terms of logistics and supply chain that is concentric upon the way in which well-established firms are able to leverage supply chain management and logistical control as a means of furthering profitability and responding to environmental threats that might exist within their industry. Accordingly, as can be seen, the vast majority of ongoing analysis and research in this field deals with companies that are already established and are in search of continued success within a given business sphere. Not surprisingly, the degree and extent to which supply chain management and logistical control can be utilized to apply within a fledgling firm has been largely overlooked. In light of this oversight, the following discussion will present the means by which supply chain management and logistical oversight are of equally importance in terms of the startup company and its potentially play a pivotal role in facilitating the company’s overall success. By stipulating two distinct question and seeking to answer how SCM and logistics impact upon them, it is the hope of this author that through such analysis the reader will be able to accomplish a greater understanding of the means by which supply chain management and logistical considerations are not only relevant to the established firm but also impact drastically of the overall success ratio that small business and developing consumer markets are able to exhibit. Relevance of SCM and Logistics to the Small Enterprise: Expanding the understanding of supply chain management and/or logistics to a small firm that is attempting to make its way into the market, one can immediately see how integral supply chain is worth whether or not such an entity will experience a level of success or failure (Myers, 2010). And exemplification of this, the reader should consider the case of a firm that is attempting to provide an alternative good or service in an already saturated market. As compared to his firm, the relatively new entrants into the market will face a situation in which the overall extent to which its financial reserves and he leveraged as a means of finding an alternative path toward supply chain is usually quite limited. Furthermore, the margin of error that such a firm has to deal with is water of magnitude smaller as compared to the more established the able to consider a variety of different from which is that based upon our experience and a team of professionals/advisors/contractors that are able to make relevant determinations and suggestions with respect to the way in which the entity should develop. Margin of Error and SCM within the Small Enterprise In keeping with the discussion of the small entity and the margin of error, it should also be indicated that the overall amount of time that is generally required for a rather large or established firm to determine supply chain management decisions is generally quite different as compared to the overall amount of time that is available to the small firm or the operating within a similar market (Nokoya, 2013). Likewise, whereas the larger entity might be able to afford the hardship and difficulty that issues relating to supply chain management might affect, the smaller business entity is one that will succeed or fail based upon this margin of error. Sadly, hardly any of the available research into supply chain management or logistics focuses on these topics from the small business perspective. This is an egregious oversight as it is this very impediment to success that sees such a high number of these firms forced to shutter. Another relevant causation for this has to do with the fact that business experience and ongoing relationships with suppliers and SCM affects a level of industry knowledge within those that are employed by larger companies and tasked with managing logistics. However, when one considers the case of an individual small business operation, the likely scenario is one that a solitary individual is not only tasked with payroll responsibilities, management responsibilities, marketing responsibilities, and a litany of others; he/she is also tasked with managing the approach to the supply chain and how the relationships with suppliers and producers of raw material or services might be forged. Further, it must be realized that in addition to the decreased margin of error that is inherent within the small business entity as compared to a larger firm or a multinational, there is also the element of the fact that decisions and ramifications of choices for supply chain management take place in a much faster period of time (Ludwig, 2007). The underlying reason for this is oftentimes due to the fact that a small business entity does not have available secondary options for supplying much needed raw material or services. By means of contrast and comparison, a larger firm generally has contingency plans as a means of fulfilling needs in the event that a given supplier is not able to deliver on time or otherwise honor their commitment. Contingency and the Small Enterprise as it Relates to SCM: Yet, the smaller firm, having just begun the process of business engagement, neither has the time nor the luxury of performing these externality based contingencies and must rely upon the success or failure of a given supplier as a means of determining its success or failure. As can clearly be seen, this is yet another factor that places the study of supply chain management and logistics on fundamentally different footing when one seeks to analyze a more established firm or company as compared to a relatively new and under-developed/inexperienced start up. SCM and Profitability: Diversity between Small and Large Enterprise: Likewise, although a great deal of ink has been expended upon the market force, competition models, and other diverse aspects of the business process, there has not been a high degree of focus upon the means whereby supply chain management, and the improvement thereof, can contribute to a much more profitable and successful firm. In this way, the following section helps to bring a high level of focus upon the phenomenon of the supply chain. Furthermore, a great deal of time is spent explaining the driving forces that seek to promote collaboration, integration, and other factors which can accelerate the means by which a business seeks to provide what many authors describe as a “process model” as a means of providing the reader with a clear step by step understanding of supply chain management, and key opportunities which can help managers endeavor to differentiate their firms and provide a level of efficiency and cost saving which can propel them to an even higher level of success within the confines of the business world (Williams, 2011). Proper and Effective SCM within the Small Enterprise: Avoiding Pitfalls: One of the key points that must be made before delving too deeply into the world of supply chain management and the means by which a given CEO or change agent can hope to effect the processes that they discuss is the fact that there are few things more difficult themselves than casting off bad habits. This fact alone is one of the main determinants that keeps many firms from adopting what would be more efficient and cost saving mechanisms which could see the given firm or organization experience a much higher level of success (Ludwig, 2009)). The authors themselves quote Eckhard Pfeiffer in stating, “Nothing is harder than casting aside the thinking, strategies, and biases that propelled a business to its current success”. Such a seemingly unnatural process is what the change originator must fight against. Merely because something has provided a given firm with a high level of success and continues to work does not necessarily mean that it cannot work better; such is the fundamental premise with which the article builds upon. Pervasive Impact: Measuring SCM and its Determinants: Next, as a way to engage the reader with the overall importance of the research, the need to discuss the levels to which SCM (supply chain management) pervades nearly every aspect of the business process is represented. This is an important step, even though some might find it redundant or misplaced, due to the fact that SCM can often be conceived as a separate entity within the business process where in fact it intimately involves each and every step of the business process itself (Suffolk, 2011). Perhaps one of the most useful attributes that scholars denote with regards to SCM is the differing attributes that highly successful SCM necessarily entails (Mireles, 2006). By doing this, the piece becomes a great deal more than just research into SCM and becomes essentially useful not only to academics but those which could hope to draw useful inference from the suggestions presented therein. Moreover, as the piece is geared to the appropriate and successful integration of SCM as well as motivating change agents to affect this, it provides a step by step listing through which successful SCM mechanisms can take effect. Finally, by asking seven research question: 1) What is successful supply chain management, 2) What factors motivate firms to engage in supply chain arrangements, 3) To what extent does organizational support exist for supply chain initiatives, 4) What benefits/outcomes are expected for supply chain integration, 5) What barriers must be overcome to achieve successful supply chain integration, 6)What are the principle bridges to effect supply chain integration, 7) To what extent are supply chain practices really being integrated, the analysis allows the reader to take a full survey of the different levels and means by which SCM can and does effect the operations of a given business entity (Hoffman, 2007). Though the overall analysis is heavy on the data side, it nonetheless presents a full and thoughtful view of the facets that drive and define supply chain management within the industry. Obviously, the level of analysis that could have been provided could necessarily have been far smaller; however, such a level of analysis would not have been able to capture the complexities and nuances of the SCM process, nor the means by which it can be further understood (Fluick, 2012). Conclusions: From the information that has been presented thus far, it is clear and apparent that there is a wide level of differential between the way in which established companies engage with supply chain management as compared to start up companies. Based upon the reasons that have been provided above, in tandem with the unique realities of finance and the depth of employees that a larger company can utilize as a function of addressing supply chain management issues as compared to a smaller startup, these issues ultimately define whether or not success can be engendered or whether or not failure will ultimately result. Whereas there are a litany of business determinants besides these that affect the overall success of a small enterprise as compared to a larger one, it must be understood that supply chain and logistics management issues should be considered anymore more relevant way as compared to the mechanisms through which stand education and business knowledge denotes. Whereas marketing, legal concerns, and human resources are still of vital importance, logistics and supply chain issues should not be pushed to a secondary level of concern; especially for the startup company (Chappelle, 2003) Instead, even though one or two individuals is responsible for a great many tasks within any startup, the means by which supply chain management is affected and the degree and extent to which effective levels of resources and time are devoted to these concerns will ultimately have a drastic impact on whether or not such a startup will ultimately be successful or not. Beyond this, neither human resources concerns, legal concerns, nor any of the other issues listed above has the potential to sidetrack and ultimately ruin the success of a small enterprise at such a rapid way as compared to issues and difficulties relating to supply-chain management failures. Likewise, addressing these first and foremost and understanding that they exist in completely different manners as compared to an established firm is the first step towards expanding upon the level of scholarship and understanding relating to supply-chain management and logistical concerns. Bibliography Chappell, L 2003, M-B, Nissan keep tabs on suppliers, Automotive News, 77, 6036, p. 28-N, Business Source Complete, EBSCOhost, viewed 22 November 2013. Davies, C 2004, Real-time build-to-order at last?, Supply Chain Europe, 13, 5, p. 47, Business Source Complete, EBSCOhost, viewed 22 November 2013. Fluick, R 2012, The expansion of Nissans Sunderland plant will provide opportunities for the UK supply chain, Marketwatch: Automotive, 12, 9, p. 4, Business Source Complete, EBSCOhost, viewed 22 November 2013. Hoffman, W 2007, Single-Lane Supply Chain, Traffic World, 271, 49, p. 16, Business Source Complete, EBSCOhost, viewed 22 November 2013. Ludwig, C 2010, Getting closer all the time, Automotive Logistics, 13, 4, pp. 16-22, Business Source Complete, EBSCOhost, viewed 22 November 2013. Ludwig, C 2009, For richer or poorer…. (cover story), Automotive Logistics, pp. 20-24, Business Source Complete, EBSCOhost, viewed 22 November 2013. Mireles, R 2006, Nissan snags its supply chain on a sandbar, Logistics Today, 47, 3, p. 14, Business Source Complete, EBSCOhost, viewed 22 November 2013. Myers, S 2010, Planning and collaboration under scrutiny in Brussels Logistics Manager, p. 08, Business Source Complete, EBSCOhost, viewed 22 November 2013. Nokoya, Y 2013, The Logistics of Nissan, Automotive Logistics, 16, 3, p. 14, Business Source Complete, EBSCOhost, viewed 22 November 2013. Suffolk, T 2011, Nissans integrated supply chain, Logistics Manager, p. 08, Business Source Complete, EBSCOhost, viewed 22 November 2013. Williams, M 2011, An economic approach to logistics, Automotive Logistics, 14, 1, pp. 36-38, Business Source Complete, EBSCOhost, viewed 22 November 2013. Read More