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ght together a wide range of best practices with downstream and upstream partners, collaborative practices, innovations in demand forecasting, and integrated business planning, as well as research based operation techniques (Green, 2013).
Unilever’s supply chain management can be termed to be a collaborative one. The collaborative supply chain management is effective in the management activities ranging from supplier selection, environmental scanning, monitoring, and auditing and supplier development (partnerships) (Brammer et al. 2012). Both supply and demand repository stages depend on forecasting as the main source of data that determines by the products in demand and availability from the stores. The production stage adopts push technique that is based on aggregate customer demand forecasts to reduce the uncertainty of stock-outs, safety, and effective resource use and cost minimization (Brammer et al. 2012). Consequently, distribution relies on pull technique for all replenishments required by its distributors through the use of customer relationship management. On the other hand, inventory optimization techniques are adopted in the planning and scheduling to determine the quantity and the time frame for production (Nardone & Monahan, 2007).
Unilever believes that partnerships in its supply chain management are essential practices because it is a powerful technique to deliver customer experience and value proposition (Unilever, 2012). The main partners include Barry Callebult a main partner in cocoa, Givaudan, The Dow Chemical Company, Metsa Board Corporation, WRI, LEAF, ALPLA, CCL Label, SAP & Accenture and Linfox Logistics. These partners help in business development, world class business support, capacity development, sustainability and business innovation in Unilever (Unilever, 2012). Unilever also aimed to increase its transparency of essential commodity supply chains that is aimed at helping terminate tropica deforestation through its partnership
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Better collaboration in turn means greater communication. When firms communicate effectively (even in diverse geographical parts with different cultural backgrounds) and given that these firms are customer –focused, then knowledge on the customer value is created.
Now the business firms are not competing individually in the markets rather they are the part and parcel of different supply chain links. The only way in order to succeed in the market is that the business managers must have the ability to link different business networks or supply chain links in an effective and efficient way.
Organizations have come up with various innovative methods in all these process, which not only provide good SCM but also add value to their businesses as well as the environment including their suppliers, society as well as economy. Supply chain strategy is critical to its sustainability.
By 1990s, it became one of the most well-liked management term (Hugos, 2006). A supply chain can be seen as the alignment of three or more firms that are directly linked by the downstream as well as upstream flows of goods, services, information and finances from a particular source to the customers.
The author states that the concept of ethics in supply chain management was activated when BBC Panorama exposed the unethical supply chains of sports and clothing companies such as Nike and Gap. These companies hired under-aged Cambodians at minimum wages in order to keep down prices for the end users.
Green Supply Chain Management.
Although the concept of green supply chain is one of the most argued topics among industrial experts and research scholars but surprisingly very few researchers have tried to explore the topic seriously. To understand the core concepts of green supply chain management, one has to define supply chain management.
To bring the main actors in the market together, for example, suppliers, manufactures, and stores are put together to simplify the production of commodities being produced, and then circulated at the right time. The captions are going to capture the
It brings integration of various processes such as production operations, buying goods and services, transportation and distribution. A successful supply chain management programs ensures these processes are integrated and coordinated into a process that is seamless
The micro-economic approach in regard to market logistics and strategic plans of an organization is extensively discussed. The effective warehouse management and transport arrangements are basic market logistic constituents (Jespersen & Skjøtt-Larsen, 2005). It is
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