Processes and Supplies of Supply Chain Management - Coursework Example

Supply Chain Management Name Institution Course Instructor Date Supply Chain Management Introduction Supply Chain Management (SCM) refers to the effective and efficient management of the supply channels’ activities to achieve a competitive product advantage characterized with easy product accessibility. The SCM activities involves various processes which include developing, sourcing, and producing a product, accompanied by information technology systems and logistics that aid in controlling the activities. Studies show that the SCM’s ideology relies on two main ideologies which include, first, the ideology that for every product to reach the consumer, it must use the combined efforts of specific institutions (Barney 2012, p.3). The institutions, in this case, represent the supply chain and they are co-joined together via information and physical flows. The physical flows are processes of transforming, moving and storing products while information flows are those that do not only permit the supply chain stakeholders to share long-lasting ideas, but also control the physical flow of products. The second ideology is that regardless of the long-time existence of supply chains, many organizations up to date are still concerned with supply activities within the organization; therefore, they do not understand the whole chain that delivers products to the consumer. Such negligence has prompted a disorganized and unreliable supply chain. With respect to the informational gap, this paper seeks to present an essay that describes the framework of SCM concepts based on the aspects of the attached SCM mind map. SCM elements and products SCM is made up of various elements. The SCM elements are usually five, but confusion arises among scholars where one side argues that there are four elements while another side insists that there are six SCM elements. Setting aside the controversy on the number of SCM elements, this section highlights on how each element significantly improves the efficiency of the supply chain. The five elements include production, inventory, transportation, supply and location. Most firms struggle with harmonization of all the elements to improve and enhance the efficiency of the SCM. Production is very important to the existence of any enterprise. The first step in the establishment of the supply chain is production. The goods produced are the ones that enter the supply chain. Therefore, an effective supply management team ensures constant flow of goods by stabilizing production (Waters 2011, p.38). Production goes in hand with other factors, but when goods are produced according to the consumer specifications, there is no surplus or deficit for the supply chain. Apart from production, inventory is also another important element that when managed well ensures that the supply chain is effective. Inventory takes into account the amount of goods that need to flow through the supply chain among other factors. With a proper account of what is needed, production is scaled down based on the demand forces and consumer recommendations. Inventory is considered as the backbone of the SCM under which effectiveness is achievable. A good SCM team takes into consideration the recommendations of the inventory to make sure that the supply chain is effective. Inventory is basically responsible for the building of the strategies required to make sure that the supply chain is effective in general terms (Blanchard 2010 p.13). Transportation is also another element that plays a huge role in strengthening or weakening the supply chain. An effective supply chain cannot function without proper transportation strategy. To ensure constant flow of goods to the point of delivery, effective transport is required. Transportation that considers both input and output of the supply chain is put in place to ensure constant flow of the supply chain. A fully functional supply chain increases productivity of the firm in terms of output. Transport usually consumes a larger portion of the revenue for most supply companies. Most companies are, therefore, trying to work towards reducing operational costs involved in transportation and distribution of goods while at the same time maximizing on it for constant flow of goods. One way for the SCM team to do this, is through the change of attitude and perception that transport is always costly. A 2014 survey indicates that most companies are focusing on shifting their attention towards reducing transportation costs as a way of significantly boosting productivity of the supply chain. The core value of the SCM is to ensure that goods are supplied. Supply is, therefore, a noteworthy element of the supply chain. In this regard, all factors of the SCM are interrelated. For efficiency of the supply chain, supply alone cannot function separate of other significant factors. However, the rate of supply increases with the increase in the produced goods. In other terms, production and demand forces in the market determine the rate of supply (Priem & Swink 2012, p.8). For the efficiency of the supply chain, firms need to ensure a constant supply of goods to the market. With constant flow, more consumers commit themselves to the product, because of its constant flow. Therefore, supplies enhance the effectiveness of the supply chain by ensuring that there is constant flow of both raw materials and finished products. Location is the final significant factor considered in the management of the supply chain. The location of the facility plays a big role in ensuring the effectiveness of supply chain management. The proximity of the facility provides fast means of delivering goods to the consumers. For a facility that is located far away from the potential customers, there is a surge in logistical costs required to run and manage the supply chain (Waters 2011, p.46). Therefore, one effective way that location enhances the efficiency of the supply chain is to ensure that the facility’s location is close to the targeted market. The location also determines the network design of the SCM. In a nutshell, all the factors mentioned above do depend on each other and other external aspects to fully ensure that the supply chain is fully functional. The management needs to consider other factors which include incorporation of technology to enhance the productivity of the supply chain. Current logistic companies are focusing much on how they can fully manage the inventory to reduce operational costs while increasing productivity (Sarac & Dauzère-Pérès 2010, p.78). The nature of the product is very significant in strengthening the SCM. Strong products are able to self-market themselves and attract more customers with the end result of creating an efficient supply chain. The quality and quantity of the products formed to sustain the supply chain do matter a lot. Consumers usually have different tastes but majority prefer quality over quantity. Some products are also able to sell themselves through their increased quantity of production. The aspect of the product on the supply chain is usually supported by two factors; manufacture and produce. The above mentioned factors are highly dependent when discussing about the product in the SCM. Both are fine tuned in a manner that ensures efficiency of the supply chain. The whole process of the product begins with the manufacturing process. It is at this stage that the two factors of quality and quantity are presided over. All operational costs are minimized or maximized at this particular step. Manufacturing considers feedback from the consumers and all the middlemen involved in the process. The feedback is very significant in increasing the precision of the final products produced (Blanchard 2010, p.73). With proper co-ordination during the overall process of production process, efficiency of the supply chain is achieved fully by increasing its total output. Produce as an aspect also has a significant role in enhancing efficiency of the whole SCM system. Most research articles indicate that the efficiency of the supply chain is improved through proper management of the inventory. It is true on most occasions, whereby, the inventory determines the qualities that are required by the consumer (Priem & Swink 2012, p.11). An effective supply chain ensures production through constant delivery of raw materials. Delivering materials on time ensures that goods produced will be ready for the market when required. This in turn enhances the efficiency of the SCM. In summary, the effectiveness of SCM elements relies on five elements that include production, inventory, transportation, supply and location. Since most firms struggle with harmonization of all the elements to improve and enhance the efficiency of the SCM, it is important for the firms’ management to outline the elements in a respective manner to create a consequential environment of fulfilling the expectations of SCM elements. The achievement of harmonization, on the other hand, initiates the SCM product which is very significant in strengthening the linkages in the supply chain network. In this regard, strong products are able to self-market themselves and attract more customers with the end result of creating an efficient supply chain. Therefore, the SCM elements and products are interlinked. As such, understanding SCM elements and products prompts the management to explore the processes of supply chain management. Processes and supplies of SCM The process of supplying goods is a very complex mechanism that requires effective strategic management. The most important factor in the process of the SCM is to ensure that all factors are harmonized together to ensure general efficiency of the supply chain (Ellram & Cooper 2014, p.8). In other words, a lot of factors are considered in the efficiency of the supply chain. The process of SCM involves factors such as moving goods and the stages involved. There are a number of stages involved in the process of SCM. They include order, materials, supply, production, distribution and customers. All these factors are effectively managed to ensure that the supply chain increases its efficiency. A well laid out strategy is necessary to ensure that all necessary factors are synchronized in a manner that makes the business to deliver. The aim of the SCM process is to ensure that goods are able to flow smoothly from the production step to the final stage (where the consumer receives the products) ((Ellram & Cooper 2014, p.10). Another aim that ensures effectiveness also includes maintaining a perfect relationship between the whole process and the potential consumers. With reference to the inventory, all the moving products are accounted for to avoid any loss. Also, Goods account for the factor that needs consideration when dealing with SCM. The simple definition of the SCM is coined around the movement of goods. For efficient functioning of the supply chain, goods that require moving are always available. The efficiency of the supply chain is that it is able to move goods while at the same time store the goods (Blanchard 2010 p.91). The relationship between the customers and the suppliers is only strengthened through constant flow of goods. Constant flow of goods is only ensured through proper management of the inventory. Lastly, there are a number of steps that are involved in the whole SCM process. All the steps of the SCM require proper planning to execute them in an orderly manner. The whole supply chain begins when orders are placed by both the company and customers. Orders are placed for both the raw materials and the finished products. The orders placed by consumers determine the quantity of the product produced thereby avoiding overproduction or under-production. The raw materials are necessary for the production of goods exchanged through the supply chain (Closs, Speier & Meacham 2011, p.102). After raw materials are converted into finished products, supply is the next step that follows. The rate of supply depends on the type of goods available, but most importantly, the demand pattern. Perishable goods are supplied immediately after production while other goods are stored and supplied at later when necessity arises. Production is a step that depends on the feedback of the inventory. The inventory is very significant in ensuring that the right information reaches the manufacturers. Blind production without full information results in over or under production. Either way, the results are characterized by losses. To ensure that production plays a role in the efficiency of the supply chain, communication is necessary to ensure that only the right amount is produced (Closs, Speier & Meacham 2011, p.102; Closs, Speier & Meacham 2011, p.110). In the recent Cao & Zhang (2011, p.165) business research report, it is necessary to consider the role played by supplies in the SCM processes. Effective management of supplies’ processes ensures the reduction of operational costs and improvement of supply chain operations. Therefore, it is of great value for the business managers to understand the components that describe the supplies processes in the SCM systems. Other business research findings show that processes such as establishing reliable connections with suppliers, engaging in strategic and collaborative procurement process, and organizing business-based inventory are major components of the SCM supplies’ processes. In this regard, the establishment of reliable connections with suppliers ensures that the given organization works in togetherness with suppliers until the contract between the two expires. Scholars characterize the organization-supplier relationship as the “management of supplier relationship.” Literally, management of supplier relationships denotes a one-directed or one-sided relationship. This means that the business organizations are solely in control of supplies and other allied processes in the SCM. Therefore, the term “management of the alliance” is appropriate in characterizing the organization-supplier relationship, because it means that both the organization and the suppliers play key roles in enhancing the supplier/customer relationship. As such, there are four main goals of the framework that represents the effective management of the alliance (Gold, Seuring & Beske 2010, p.142). They include provision of approaches that safeguards the vibrancy and healthy of the relationship, creation of a reliable problem solving protocol, continuous development of measures that provide benefits for both parties and finally, establishment of assessment measures which determine the success of the goals. In a nutshell, good management of the alliance requires the incorporation of the supply base talents to create product value sustainability and constantly improve the reliability of the product supply chain. Alternatively, engaging in strategic procurement process represents the core component of supplies processes. However, strategic and collaborative procurement does not only represent the workability of the supplies processes, but also amounts to better outcomes. In the context of collaboration, the procurement process does not entirely involve the engagements of the purchasing department in an organization, but rather relies on the contributions of organizational customers in the decision-making process. More importantly, effective supplies’ processes seek feedback information from the customers that directly affects the strategic plans and objectives of the customers. The areas that dictate solicitation of information include maintenance, engineering, health/environment safety, and quality assurance, among other internally functional units that directly influence the supplies processes. The strategic and collaborative procurement process guarantees the availability of supplies which consequently leads to lower operational costs, improved customer responsiveness and streamlined supply processes (Tang & Nurmaya Musa 2011, p.29). Finally, establishment of an organization-based inventory plan plays a major role in the management of customer-vendor relationships. As seen earlier in the procurement process, the concept of collaborative relationship represented the core of supplies process in the SCM. However, recent research (that examined the role played by relationships in the supply chain management) established that the uttermost aspect that determines the healthy and productivity of the relationships is inventory transfers and storage. This means that, many efforts that go in the management of the relationships involve the processes of purchasing, transferring, and managing the inventory. It is then evident that, the inventory determines the equilibration point between demand and supply in SCM. As such, it puts a given organization in a struggle of balancing the fulfillment of consumer demands (which is impossible to predict with accuracy) and maintaining adequate supply of products (Barney 2012, p.5). In such situations, the organization-based inventory is used in the establishment of balance thereby creating an effective management of SCM. The effective management plays certain roles that lead to realization of SCM advantages. SCM advantages According to Carter & Easton (2011, p.47), the management process in supply chain ensures that the product supply channels are cost-effective, reliable and efficient. It is achieved via a collection of steps that an organization adopts in the entire process of transforming raw materials into consumer products. The steps are collectively grouped into five stages of management in the supply chain. The stages include planning, developing, making, delivering and returning. The management undertakes the initial stage of planning in the supply chain to develop a strategy that addresses the needs of the customer in the production of a given product. At this stage, the management focuses on planning a strategy that benefits the supply chain; therefore, the stage forms the SCM’s strategic segment. With regards to Sarkis, Zhu & Lai (2011, p.8) organization at this juncture requires a management strategy that controls the resources invested in producing customer-oriented products. In summary, the planning stage of management involves development of protocols that ensures the supply chain is cost-effective, efficient and produces customer-satisfactory products. In the developing stage, the management focuses on building reliable relationships with supply chain stakeholders such as the suppliers of raw material. The management identifies not only dependable suppliers, but also develops appropriate methods of shipping and delivering raw materials and paying the suppliers. In the process, the supply chain managers are tasked with the responsibility of creating metrics that monitor and improve supply chain relationships (Hugos 2011, p.56). Also, they develop a framework that controls the pricing, the delivery of raw materials, and payment of suppliers. Consequentially, the managers consolidate the processes of managing products inventory into acceptance and certification of shipments, transportation of the shipments to the manufacturing plant and approving the payment of suppliers. The making stage involves the process of manufacturing, testing, and packaging of products, followed by planning for the delivery of the final product. In other words, the stage represents the manufacturing stage of supply chain process. The management plays an important role of scheduling the activities that necessitate the process of manufacturing, testing for quality and packaging of the final product. Also, the management formulates a reliable channel of delivering the final product to the consumer. At this stage the management invests a lot of time and resources in developing systems that measure product quality levels, manufacturing output and productiveness of employees thereby making the stage a metric-demanding segment of managing a particular supply chain (Gold, Seuring & Beske 2010, p.217). The delivering stage management adopts certain logistics for coordinating the process of receiving customers’ orders, warehousing, transporting products to the customers and setting systems of invoicing customer payments. Returning forms the final stage of any supply chain, whereby; the management addresses the customers’ complaints, questions and the return of defective products. The returning stage calls for the management to develop and implement a flexible framework that responds to all types of customers’ inquiries. However, it is important to note that the success of the stages of management in supply chain relies on the strategic, tactical and operational decision-making process. Strategic approaches entails the decisions that govern all organizational activities, stakeholders and premises, tactical decision making focuses on the adoption of cost-effective measures in organizational practices and finally, operational approaches are formulated on daily basis to govern the physical and informational flows of supply chain (Barney 2012, p.5). In summary, the strategic, tactical, and operational approaches of decision making determine the success of the management at every stage of supply chain. Studies show that effective SCM systems are advantageous to the sustainability and development of a given organization. Whereby, the SCM transforms the conventional supply chain systems into reliable, flexible and productive network characterized with beneficial advantages. Some of major beneficial advantages include reduction of costs, increase of efficiency, increase of output, increase of profits and increase of productivity, among other advantages. For instance, in the reduction of costs, the SCM identifies and eliminates the organizational processes that increase the costs of production, but do not increase the marginal price of the end product (Hugos 2011, p.77). Alternatively, the increase in cost of production leads to wasteful usage of raw materials. Such instances occur in poor planning and coordination of the management activities. However, the SCM ensures that the organization eliminates unproductive activities and adopts only cost-effective activities that meet the organizations objectives and ensure balanced physical and informational flows in the supply chain. By doing so, the organization benefits from the SCM by increasing the production efficiency. Additionally, an organization that adopts an effective SCM system fosters reliable and dependable relationships between the suppliers and the customers. In the long-run the relationships promotes timely delivery and payment of products. Consequentially, the time-consciousness, flexibility and responsive characteristics of the suppliers attracts many customers thereby increasing the output and sales of the final product. Moreover, the aspect of responsiveness increases the supply chain visibility thereby prompting timely identification and adaptation to trending changes. Responsiveness in this case prevents the unpredictable threats to the supply chain and capitalizes on the available opportunities thereby contributing to growth of the supply chain. With reference to Tang & Nurmaya Musa (2011, p.28), effective SCM systems contribute to the increase in profits resulting from the increased sales of the final product. In this particular case, the SCM eliminates cost-ineffective activities which lead to reduction in production costs. The reduction of production costs means high production of products characterized with high sales of the final product thereby leading to high profitable gains. Finally, effective SCM systems are beneficial to business organization because they involve reliable buyers who in turn provide good supplies. Good supplies ensure the production and supply process is not only effective and reliable as earlier noted, but also profitable (Gold, Seuring & Beske 2010, p.189). On the contrary, there are notable disadvantages that the organization encounters in the process of developing, adopting and implementing effective SCM systems. Research findings report many obstacles encountered in the process of implementing effective SCM systems due to its high complexity and short-term dynamism, increase in uncertainty, high implementation costs, and difficulties in reducing operation costs. Also, challenges arise in the process of developing a reliable information technology system, and changing supply chain conditions to suit the adopted SCM system (Hugos 2011, p.214). It is important to note that despite the notable disadvantages, there are vast advantages realized in effective and efficient management of supply chain. The realization of SCM advantages relies on the strategic management and synchronization of SCM components that include elements, process, products and supplies. Moreover, the functionality of each component relies on the pre-existence other components. This means that based on the SCM mind map the absence of one component results in the ineffective management of supply chains thereby creating unproductive channels of supplying products. Therefore, in the conclusion the paper summarizes the important aspects of consideration in management of supply chain components. Conclusion The paper presented an essay that described the framework of SCM concepts based on the aspects so the SCM mind map. The concepts involved the SCM elements, processes, products, management, supplies and advantages. The SCM elements are made up of five components which include production, inventory, transportation, supply and location. Production is the most important factor that determines the existence of any enterprise. This means that the first step in the establishment of the supply chain is production. The goods produced are the ones that enter the supply chain. Therefore, an effective supply management team ensures constant flow of goods by stabilizing production. In the discussion, the essay established that many firms struggle with harmonization of all the elements to improve and enhance the efficiency of the SCM. On the other hand the SCM processes involved factors such as moving goods and the stages involved. However, there are a number of stages involved in the process of SCM which include order, materials, supply, production, distribution and customers. All these factors and stages are effectively managed to ensure that the supply chain increases its efficiency. A well laid out strategy is necessary to ensure that all necessary factors are synchronized in a manner that makes the business to deliver. Furthermore, the essay addressed the aspect of product in the SCM which is determined by two factors that include manufacture and produce. Both are fine tuned in a manner that ensures efficiency of the supply chain. The whole process of the product begins with the manufacturing process. Produce as an aspect also has a significant role in enhancing efficiency of the whole SCM system. As such, the efficiency of the supply chain is improved through proper management of the inventory. In the process, the establishment of reliable connections with suppliers, the engagement in strategic and collaborative procurement process, and the development of business-based inventory became major components of the SCM supplies’ processes. Finally, the essay addressed the role played by management in supply chain to create profitable benefits such as reduction of costs, increase of production and creation of an effective SCM system. References Barney, JB 2012, ‘Purchasing, supply chain management and sustained competitive advantage: The relevance of resource‐based theory,’ Journal of Supply Chain Management, vol. 48, no. 2, pp. 3-6. Blanchard, D 2010, Supply chain management best practices (2nd ed.), John Wiley & Sons, Hoboken, NJ. Cao, M & Zhang, Q 2011, ‘Supply chain collaboration: impact on collaborative advantage and firm performance,’ Journal of Operations Management, vol. 29, no. 3, pp. 163-180. Carter, CR & Easton, PL 2011, ‘Sustainable supply chain management: evolution and future directions,’ International Journal of Physical Distribution & Logistics Management, vol. 41, no. 1, pp. 46-62. Closs, DJ, Speier, C & Meacham, N 2011, ‘Sustainability to support end-to-end value chains: the role of supply chain management,’ Journal of the Academy of Marketing Science, vol. 39, no. 1, pp. 101-116. Ellram, LM & Cooper, MC 2014, ‘Supply Chain Management: It's All About the Journey, Not the Destination,’ Journal of Supply Chain Management, vol. 50, no. 1, pp. 8-20. Gold, S, Seuring, S & Beske, P 2010, ‘Sustainable supply chain management and inter‐organizational resources: a literature review,’ Corporate social responsibility and environmental management, vol. 17, no. 4, pp. 230-245. Hugos, MH 2011, Essentials of supply chain management (Vol. 62), John Wiley & Sons, Hoboken, NJ. Priem, RL & Swink, M 2012, ‘A Demand‐side Perspective on Supply Chain Management,’ Journal of Supply Chain Management, vol. 48, no. 2, pp. 7-13. Sarac, A, Absi, N & Dauzère-Pérès, S 2010, ‘A literature review on the impact of RFID technologies on supply chain management,’ International Journal of Production Economics, vol. 128, no. 1, pp. 77-95. Sarkis, J, Zhu, Q & Lai, KH 2011, ‘An organizational theoretic review of green supply chain management literature,’ International Journal of Production Economics, vol. 130, no. 1, pp. 1-15. Tang, O & Nurmaya Musa, S 2011, ‘Identifying risk issues and research advancements in supply chain risk management. International Journal of Production Economics, vol. 133, no. 1, pp. 25-34. Essay Research Log Database Time Spent Search Terms Results (# of records) Evaluation of material (how/what will it contribute to your essay or support your argument?) Google Scholar 12 hours Processes of Supply Chain Management and Elements of Supply Chain Management, Recruitment Many patented research documents, articles and books on the topics found Quick review, followed by contextual reading of the books and journals and will be used to establish the literature for the topics Elsevier 2 hours Supply chain collaboration Several peer reviewed articles found for the topic Abstract reading to establish and understand the supplies processes Wiley Online Library 5 hours 45 minutes Purchase, Demand and supply chain management relationships 100+ scholarly and peer reviewed articles Used in defining the connection and relationships in supply chain management, used in constructing the benefits of supply chain management ScienceDirect.com 3 and half hours Context of supply chain management Too many articles found on the topic Will help find ideas for the study question, goals and objectives Springer 30 minutes Supply chain management introduction Various articles on different topics found Will require subject-oriented reading to capture the application technology in supply chain management Emerald 3 hours The framework of supply chain management Few publications were found on the topic Will reveal the framework and organization of supply chain in various companies. 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