Assignment 2: Supply Chain Management

Supply Chain

Hakim Callahan

Argosy University

Describe the overall goal of a supply chain.

Supply chain refers to a network of organizations, people and resources and activities that are needed to move a product from the producer to consumer (Smith, 2001). The overall goal of a supply chain is achieve efficient fulfillment. The fundamental purpose of a supply chain is highlighted by the old business adage, “you can sell from an empty wagon.” In this regard, the purpose of a supply chain on the most basic level is to make inventory readily available to fulfill demand in customer facing positions. The goal to match supply and demand must be pursued by organizations in a timely fashion by using the most efficient cross-chain resources.

In achieving this efficient fulfilment, supply chain partners must work collaboratively to maximize productivity, establish standardized process while at the same time eliminating duplicate efforts and minimizing inventory levels. These steps enable organizations not only to reduce waste and cut cost but also achieve efficiency in the supply chain.

Efficient fulfilment do not end with inventory control and management of supply and demand. There is the aspect of driving customer value. While it is important to have cost efficient and inexpensive products, supply chain also focuses on ensuring value creation for their customers. Customers create the need for a supply chain since they are the lifeblood of an organization. It is therefore the fundamental objective for the supply chain to consistently meet and exceed customer expectations and requirements.

Describe the difference between a supply that is responsive (service) and a supply chain that is efficient. Can a supply chain be both?

Whereas efficiency saves money and maximizes profits in business, an efficient supply chain can be of great significance to a business’s bottom-line. An efficient supply chain uses the most cost effective way to move products to their destinations. This is essential in today’s global marketplace. The costs associated with supply chain form a major part of your overheads which are ultimately expressed in prices to your customers.

The ability to successfully compete with other business entities with similar products can greatly be hobbled if your supply chain contributes unnecessary costs to your end product. In this regard, optimization, high quality partners, inventory management and customer satisfaction are some of the hallmarks of an efficient supply chain (Buurman, 2002).

A responsive supply chain on the other hand work in two ways; one it has to satisfy the needs of the business and two, it has to be responsive to the needs of the customer. We currently operate in a highly competitive market and the real selling point is a guarantee of quick delivery. However, a business is likely to lose a customer when an order arrives quickly but is inaccurate or incomplete. This may also result in loss of money and time wastage. Every business has its ups and downs and seasons affect sales. These factors need to be accommodated by a responsive supply chain.

While efficient supply chain and responsive supply chain may be polar opposites, both supply chains serve the same end goal hence equally important. Efficient supply chain focuses on speed, uniformity and quantity while a responsive supply chain is quite slow-paced, with more customized products. The two can work together. You just ensure that your supply chain is as responsive as required and as efficient as possible (Randall, 2003).

How can an organization optimize supply chain management to improve results and remove obstacles? Support your answer with two current examples.

The supply chain has become a completely complex system of people, technologies and processes especially for extended enterprises. Due to the proliferation of computer networks and technologies, supply chain has greatly expanded and innovations have opened doors to what wen today refer to as integrated supply chain management. In order to optimize supply chain management, the following are some of the ways to improve results and remove obstacles.

It is imperative to think globally and act locally. When thinking about value chain planning and supply chain, it is important that we think globally when it comes to opportunities for procurement of goods and services for example leverage that come with having different channels within the echelons of the supply chain process. The other way to optimize supply chain management is to focus on primary strengths and outsource all the others. For example, determining the optimal distribution network.

Based on your learning from your research, what additional recommendations might add to what was accomplished?

Supply chain is critical to the performance of business. It is important for business entities to adopt the integrated supply chain management that considers all the details surrounding supply chain by bringing together the network involved in the chain and harmonizing roles in a way that is complementary. It is also important to consider the fact that consumers are final beneficiaries of the product hence the need for proper handling of products in a way that do not compromise product quality. The choice of a supply chain network to use plays a vital role in determining the success of an organization to the extent of meeting the operational needs of the network.

References

Buurman, J. (2002). Supply chain logistics management. McGraw-Hill.

Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business logistics, 22(2), 1-25.

Randall, T. R., Morgan, R. M., & Morton, A. R. (2003). Efficient versus responsive supply chain choice: an empirical examination of influential factors. Journal of Product Innovation Management, 20(6), 430-443.