Supply Chain Management System - Coursework Example

Supply Chain Management System Executive Summary This report aims at providing a comprehensive overview of Supply Chain System Management (SCSM). In its findings, the report discusses various functions and importance such as roles in distribution, inventory, payments, supply, transportation as well as customer care among others. Effective supply chain management is a vital activity that either positively or negatively influences the performance of an organisation in the global market as portrayed in the report. This report explores various case studies in which companies are evaluated based on their supply chain managements systems, problems they encounter and the solutions. It is also insightfully to explore the emerging trends in Supply Chain Management. The contemporary state of supply chain management is also outlined in regard to problems and solutions highlighting the probable remedies. At the end, a conclusive remark is drawn based on the discussed concepts. This gives the report a holistic approach in exhausting the topic ‘Supply Chain Management System’. Introduction The report is sequentially arranged such that a regular flow is achieved from one concept to another. At the beginning, the report starts by defining key terms that will help in the comprehension of the basic concepts. Various authors have had diverse but concurrent description of supply chain management concepts and related terms and only through these can the topic be best understood. It is significant to get a deep and contextual meaning of terms that are to be used in the text so that concepts can be relevantly and accurately interpreted without any flaw (Gattorna, 2009:156). After definitions, an in-depth analysis of two case studies is provided in which their Supply Chain Management is critically evaluated and issues relating to them on the same unfolded. Consequently, the trends and patterns seen in supply chain management as an element of technology are outlined so that a prediction of the future is achieved based on the evidence currently available. Finally after a conclusive remark is given summarising the whole concepts covered, an appendix is provided as well that gives an overall market overview highlighting the market share of the companies and other related market issues. Definition of Terms Supply Chain: According to Martin (2014:33), it can be defined as the series of activities and process engaged in from the time a manufacturer produces some commodity to the time it reaches the final consumer as it passes through the distributor, wholesaler, and retailer among others. Supply Chain Management: Chandra and Grabis (2007:23), conceptualizes supply chain management as the regulatory acts of planning, allocating resources for and generally overseeing the process through which goods and services produced by the manufacturer trickle down to the targeted consumer through a series of intermediaries. Case Studies Alcatel Company, a major telecommunication company that has been in existence for quite some time has been faced with myriad supply chain problems that needed quick and careful attention. Alcatel faced a problem with increasing their services in the market while at the same time using the lowest resources possible. As it is, the supply chain if not properly managed can make a company incur expenses that are unnecessary thereby reducing its profit margin (Cohen and Roussel, 2013:93). Alcatel having realised this got caught up in a dilemma on how to breakthrough into the market and boost its suppliers at the lowest budget possible. In order to solve this challenge, Alcatel invited ‘Lead Logistics’ to come in and run their logistics strategy such that their products can cut across the wider international markets and sell across the boarders at reduced costs. Lead Logistics also became the intermediary between the consumers and the distributors. At the end of it, the results were amazing as Alcatel’s products started reaching the European market at very fast rates in delivery making the company prosper and become what it is today just a decade since they made the move. Consequently, ‘Silicon Graphic Inc. (SGI)’, a company that braces itself to be ‘a high-performance computing, visualisation and storage solutions’ was challenged on how to best boost their supply to their consumers so that they may achieve increased customer loyalty while at the same time lowering the cost of supply and distribution of their spare parts. This was a serious supply chain concern that required a quick and tactful response. Inventory visibility was as well a necessity for the company on the face of its market. To solve this, it began to centralise its supplies, engaged in complete set of distribution transportation, overhauled ‘end-of-run way’ and applied modern and sophisticated technology that resulted into great achievements. Eventually, it widened its global position to a vast network that enabled it grow its market share significantly. Analysis of the Cases The two outlined companies (Alcatel and SGI) both faced almost similar problems. They both sought to increase the touch they have with their customers through widening their markets and providing more sophisticated, better quality services and products to their customers. However, they had an issue with how best to reduce the cost or operate within the cost efficiency limits while at the same time satisfying their customers (Plenert, 2007:140). These were only solved when they deployed the services of logistic solution companies such as UPS and Lead Solutions that used their advanced expertise to harmonise these situations. Problems and Solutions Supply Chain management bring a lot of problems to companies and organisation as demonstrated by the two case studies and sometimes the management can get into total confusion on what to do to solve the problems (Myerson, 2012:91). First, getting to global network where production can cut be internationalised is real concern to many manufacturers. As Blanchard (2010) highlights organisations struggle to break through into international market supply chains owing to logistic requirements. Hult, Closs and Frayer (2014:134), recommend that to solve this, developing an international procurement system which is capable of responding to the company’s demands is vital in such cases. There is also a problem or rather a concern when it comes to manufacturing very high quality goods that can meet the international standards yet high quality implies increased cost (Kilger and Stadtler, 2005:138). The pressure to beat the rest and supply the market with safe products can sometimes be a nightmare to most producers (Mentzer, Myers and Stank, 2007:87). To remedy this, it begins from the point where the company chooses high quality raw materials to the point of final production (Bozarth and Handfield, 2005:78). Access to latest technology by many companies is a real problem that affects supply chain management (Fawcett, Ellram and Ogden, 2007:117). Leeman, (2010:122) found out that most companies still rely on the traditional methods of handling their warehousing, customer relations, distribution among others that make effectiveness of the logistics turn out to be poor (Morris and Pinto, 2007:44). This can be solved through revolution and transformation from the old ways into new and advanced technological systems where almost everything is managed and operated on by updated technology (Bidgoli, 2010:99). As Myerson (2012:102), puts it, technology is the best way to heighten the supply chain system. Future Trends Globalisation One of the trends first rising is the international markets that are probing every company to start thinking in terms of how to reach out to these markets (Martin, 2014: 93). For business managers who want to help their companies grow and become successful in the market, they should understand that international monopoly market cannot be held for long as many companies are joining. End-to-End Visibility Another trend that is fast growing is the end-to-end visibility in which managers have taken keen interest in trying to protectively illuminate what the supply chain entails from all angles unlike the traditional one where people would just assume one side. Market research is done so as to unfold what happens on the other end of the market (Coyle & Coyle, 2009:112). Information Technology With the changing world, businesses are embracing the new technologies in trying to efficiently and effectively operate. Information technology is one of the elements that have since been integrated in helping to communicate and find some information on how best to operate. Logistic has totally transformed into a technology hub (Ivanov and Sokolov, 2010: 119) Partnerships Lately, manufactures are seeking to improve their efficiencies through getting into deals with companies that can help break through into their logistic problems thereby improving their ‘supply chain managements’. With the recognition of the significant role ‘logistic service providers’ play, firms are steadily affiliating with them so as to find solutions to their logistic problems (Leeman, 2010:100). Conclusion Supply Chain Management System is an established state-of-the-art technology that has since been well identified by many manufacturers. Although some few companies might have taken too long to respond to the dynamics and trends in supply chain and logistics, it is accurate to say that most have recognised and embraced the essence of effectively managing it. Currently, with the new wave of globalisation, companies are doing all they can to reach out and tap out those markets that they have ignored for long in the international platform. The best way to do this is through integrating new technological systems that can help facilitate one’s logistics from the point of production to end consumer (Rushton and Walker, 2007:120). Another issue that is bothering manufacturers is how best to provide good products and services at the lowest cost possible. Most of these solutions have been found through partnering with logistic service providers who comes in between the manufacturer and the market thereby offering accurate and workable recommendations. All in all, supply chain management system is an effective state of the art technology that has had positive results in cases where it has been well implemented as demonstrated by the two case studies. Appendix: Market Overview Alcatel Silicon Graphic Inc. (SGI) Market Share: 27% (‘IP services’) 19%(‘Evolved Packet Core’) 13%(Optimal Networking) 37%(CDMA) Note: As per 2013 records. Market Share: 22 % (until 2008) in the computer hardware and software production industry. Target customers(main): Telecommunication industries that uses ‘IP networking’ Target Customers (main): Entertainment industries as well as interested parties in first computer products. Products: Offers digital telecommunication networks. Products: ‘Computer hardware &Software’ (‘High Performance Computing, Visualisation and Storage’) Countries Served: Global Countries Served: America and Europe References Bidgoli, H. (2010) The handbook of technology management, Hoboken, N.J., John Wiley & Sons. Blanchard, D. (2010) Supply chain management best practices, Hoboken, N.J., John Wiley & Sons. Bozarth, C.C. & Handfield, R.B. (2005) Introduction to operations and supply chain management, Upper Saddle River, NJ, Pearson Prentice Hall. Chandra, C. & Grabis, J. (2007) Supply chain configuration concepts, solutions and applications, New York, Springer. Cohen, S. & Roussel, J. (2013) Strategic supply chain management, New York, McGraw. Coyle, J.J. & Coyle, J.J. (2009) Supply chain management: a logistics perspective, Mason, OH, South-Western Cengage Learning. Fawcett, S.E., Ellram, L.M. & Ogden, J.A. (2007) Supply chain management from vision to implementation, Upper Saddle River, NJ, Pearson Prentice Hall. Gattorna, J. (2009) Dynamic supply chain alignment: a new business model for peak performance in enterprise supply chains across all geographies, Farnham, England, Gower Pub. Hult, G.T.M., Closs, D.J. & Frayer, D. (2014) Global supply chain management: leveraging processes, measurements, and tools for strategic corporate advantage, New York, McGraw. Ivanov, D. & Sokolov, B.V. (2010) Adaptive supply chain management. London, Springer. Leeman, J. (2010) Supply Chain Management: fast, flexible supply chains in manufacturing and retailing, Düsseldorf, Institute for Business Process Management. Martin, J.W. (2014) Lean Six Sigma for supply chain management: a 10-step solution process, New York, McGraw Hill Education. Mentzer, J.T., Myers, M.B. & Stank, T.P. (2007) Handbook of global supply chain management, Thousand Oaks, Sage Publications. Morris, P.W.G. & Pinto, J.K. (2007) The Wiley guide to project technology, supply chain & procurement management, Hoboken, N.J., John Wiley & Sons. Myerson, P. (2012) Lean supply chain and logistics management, New York, McGraw Hill Professional. Kilger, C. & Stadtler, H. (2005) Supply chain management and advanced planning concepts, models, software and case studies, Berlin, Springer. Plenert, G.J. (2007) Reinventing lean introducing lean management into the supply chain, Amsterdam, Elsevier/Butterworth-Heinemann. Rushton, A. & Walker, S. (2007) International logistics supply chain outsourcing: from local to global, London, Kogan Page. Read More