Supply Chain Management Activities - Assignment Example

Key words: Supply chain Management (SCM) Supply chain (SC) Supply chain strategy (SCS) Supply chain/design planning Supply chain Management Part 1 Introduction Supply chain management involves collective of activities that facilitate movement of merchandise from the manufacturer to the intended destination. The activities in relation to the structure of a firm, it may entail one firm or numerous, which usually aid in the circulation of the products. The activities normally differ variedly; owing to the numerous stages, into which goods normally pass to their final destination (customer). Conventionally, supply chain constitutes of five entities each possessing distinct tasks in line as indicated (Fig. 1). Each party in the chain normally assumes five logistics that guarantee the client’s value and attainment of an aggressive advantage in the market. Mainly, these encompass clientele service, production planning, buying, storing of the finished merchandise and ferrying. These are evident in the firm in which goods have to pass through prior the corporation finds adequate dispatching means and contribute to the core tasks of the main supply. Besides, the diverse entities that normally form supply chain; primarily their connection entails both physical and informational flows. Physical flow is the movement of the merchandise from its source to the intended destination. An informational flow is the sharing of ideas or essential long-term plans concerning movement of goods in the supply chain amid the key partners. Consequently, this ensures the accessibility of the necessary merchandise to the client besides enabling participating firms maintain their competitive edge. Pepsi Company The firm’s operations entail prior planning, which is approximately two years due to the expensive nature of abrupt changes that may even interfere with firm’s strategies. Its internal logistics comprise of 65%-automated operations, thus shunning much human physical involvement (Deshpande 4). This supply design, has enabled the firm attain greater aggressive advantage in the market besides having big clientele for its goods. Additionally, it entails prior material planning and sourcing where its suppliers cannot exceed the stated financial plan of Rs 2.9 Billion. The table below exemplifies design target in which the Pepsi’s operates. Table 1: Pepsis Supply Chain/Design Strategy Production 180,000 converted 250Ml/day Storage: Raw plus packing 80,000 Ft2 Storage: Finished goods 120,000Ft2 Pepsi normally operates within the set above stated constraints (in Table 1), which encompass both local and export forecasts especially Afghanistan’s demand (Janvier-James 200). This enables the firm to maintain its grip of the clientele equally at home and internationally, which is possible via ensuring its supply chain/design planning is flexible. Pepsi usually undertakes its design planning mainly on monthly, weekly and on daily basis especially at Haidri (Janvier-James 204). Consequently, shun future sudden demand fluctuations that may vary or deviate from the long-term planning, which the firm had undertaken before. The corporation also maintains effective supply chain operations, which entail preparing incoming client’s orders and pick lists. In-charge personnel normally sets the dates into which individual clients will pick their orders chiefly at the warehouse or when the firm is delivering the products (Deshpande 11). Pepsi via its prior planning and sound operations evident in its process, it has managed to dominate both the local and external markets especially in Afghanistan. Fig. 1 Supply Chain Cycle Conclusion Supply chain management normally involves diverse operations undertaken by all the involved entities aiming to offer the clientele high quality services and merchandise. The operations are both domestic and external where the latter entails dealings with similar line individual firms (Deshpande 18). The operations mainly are informational, for instance, sharing of ideas regarding a certain technological knowhow that may concern their production. This normally enhances effective communication and sound relations amid the involved parties, who comprise producers, retailers and suppliers. Internal operations comprise five logistics (production planning, buying, storing and transportation), which each corporation has to ensure their sound inception (Jayaram, Keah-Choon & Nachiappan. 6838). Primarily, these logistics normally form the core basis for a firm to flourish and maintain an aggressive advantage of its competitors, for illustration, Pepsi. Pepsi’s good reputation emanates from its sound inception of logistics where the management institutes its supply design two years prior to its physical execution. Hence, enable the firm operate within its constraints, contrary to numerous average enterprises that usually formulate their strategies while some operations are underway (Deshpande 18). Prior preparing strategy design it is vital for a firm to predict future malpractices that may prompt it sway from operating within its constraints, thus correct early and employ effective policies. Part 2 A New Introduction to Supply Chains and Supply Chain Management: Definitions and Theories Perspective. By Janvier-James & Assey Mbang Janvier-James and Assey Mbang addresses the vital role SC and SCM ed in ensuring corporate efficiency, which according to studies have drawn the attention of the numerous academicians (Janvier-James & Assey Mbang 200). The article tries to offer appropriate definitions of both the SC and SCM where numerous people have erroneously attributed them with manufacturing plants. This is because of their incorporation, which is rampant especially in heavy manufacturing plants where some academicians seem to support the idea regarding their implications (Janvier-James & Assey Mbang 202). Small firms or enterprises have not intensively applied these terms in reference to their tasks though; conventionally they are similar with the big plants. Performance Metrics: Key to Success in Global Supply Chain Management. By Abbas Foroughi, Mehmet C. Kocakulah & William C. Perkins. The article highlights serious setbacks faced by the present large-scale corporations due to the complexity of sound decisions that they have to make in order thrive in the market. Owing to this, numerous corporations have yielded to making partnerships intended for mutual benefits. This is especially amid the states that emanate from diverse regions worldwide and intend to invest in foreign states where they catering for some services that are pricey. Foroughi, Kocakulah & Perkins in this article, they have exemplified varied facilities and their location, which are presently aiding supply chain management. Furthermore, it also highlights the benefits emanating from the utilization of performance metrics. Foroughi, Kocakulah & Perkins contend that, the success of a universal corporation presently lies on its ability to incorporate and utilize complex enterprise’s relationship networks. Efficient and sound supply chain management emanates from incorporating all the shareholders (Producers, retailers, clientele and suppliers) (Foroughi, Kocakulah & Perkins 36). This will be via ensuring sound communication by utilizing internet, intranet and EDI (Foroughi, Kocakulah & Perkins 41). This aspect is evident in the developed states where it is pertinent, but predicament lies in the emergent states where they are not able to link well with their western counterparts who possess sound mechanisms. Through in this article, AMR’s research observes how supply optimization, planning and executing managers seem to be skilled especially in the internal logistics, but utterly fail in the global application (Foroughi, Kocakulah & Perkins 37). Hence, posing a great barrier to numerous ventures that may be making their debut in wide-reaching competition. It also contends that, international operations tend to augment enterprise’s complexity due to the multifaceted consumer needs besides stiff performance evident in the market. Since, some enterprises/competitors have mastered their thriving art in global arena contrary to the incoming shareholders who may be employing numerous clues initially without success. This yields to failure to the extent of some not being able to revive again to the expected standards. Supply chain management practices in toy supply chains By Chee Yew Wong. Chee Yew Wong in this study seeks to establish SCM practices evident in Toy’s operations besides theoretical gaps, which seem to alter it diverse activities (Wong 367). The methods entail both the universal and thorough study of the previous of firm’s international operations. These encompass qualitative semi-structured interviews and questionnaires in all its European operating retailers. Chee Yew Wong contends that according to the study’s findings, the firm normally utilizes two SCM practices (Wong 368). These encompass one ordering behavior besides practice dominated by SCM especially toy manufacturers. Conclusion Besides supply chain management’s complexity, the technological knowhow of an individual firm normally is a determining factor. Since, numerous enterprises present in the international market besides being well equipped technologically, they normally emanate from backgrounds whose mechanisms are sound. Hence, they have no comparison with those emanating from Third Word. This is because, apart from having exceptional knowhow, they do have high-skilled personnel proficient in their fields contrary to their counterparts. Therefore, in attaining excellent results and maintaining of high performance, corporations should ensure the shareholders involved in the supply chain have undertaken their tasks as necessitated. Additionally, integration of diverse technological knowhow is essential, for illustration, internet, intranet and EDI. Conversely, this may seem pricey to the incoming firms like those emanating from disadvantaged states, but they can opt to use their counterparts in offering some services like distribution. Additionally, numerous academicians have contended amidst themselves the exact definitions of SCM and SC that seem to have diverse meanings. This is especially in their applications where many people attribute the terms with heavy manufacturing plants, which has extended to the Toy’s practices. Work Cited Deshpande, Anant. "Supply Chain Management Dimensions, Supply Chain Performance And Organizational Performance: An Integrated Framework." International Journal Of Business & Management 7.8 (2012): 2-19. Web. 28 May 2012. Jayaram, Jayanth, Keah-Choon Tan, & S. P. Nachiappan. Examining The Interrelationships Between Supply Chain Integration Scope And Supply Chain Management Efforts. International Journal Of Production Research 48.22 (2010): 6837-6857. Web. 28 May 2012. Janvier-James & Assey Mbang. A New Introduction To Supply Chains And Supply Chain Management: Definitions And Theories Perspective. International Business Research 5.1 (2012): 194-207. Web. 29 May 2012. Abbas Foroughi, Mehmet C. Kocakulah & William C. Perkins. Performance Metrics: Key to Success in Global Supply Chain. Management. Journal of Transnational Management Development. 37-41. Chee Yew Wong. Supply chain management practices in toy supply chains. Supply Chain Management An International Journal 32.8, (2005): 367-378 Read More