1Running head: CHAPTER 11 – QUESTION 2
Chapter 11 Question 2
Robert Jones
Liberty University
2Running head: CHAPTER 11 – QUESTION 2
Introduction
In organizations and businesses there has to be an understanding of how to: establish,
produce, transport, manage, store, and market a product. “One of the most significant paradigm
shifts of modern business management is that individual businesses no longer compete as solely
autonomous entities, but rather as supply chains.” (Douglas M Lambert, Martha C Cooper, 2000)
With the help of various tools businesses can grow and take in more territory to help cut down
cost’s, and improve efficiency. The Supply Chain Management (SCM) tool is one of the most
innovative tools that businesses use to implement a constant flow of resources from other
organizations. “Supply chain, therefore, improves the value chain of the firm. It has a direct
impact on the company’s bottom line.” (Motiwalla, L. & Thompson, J. 2011)
Discussion Comment
Supply chain management is a tool that consists of a framework to allow additional
businesses and organizations to supplement one another. In todays business commerce
organizations are no longer competing business versus business but supply chain vs supply
chain. This tool broadens the scope in which a business can manage efficiency in costs,
transportation, and improve overall productivity. The supply chain management has a framework
that consists of four modules that makes up this tool. Facilities, inventory, transportation, and
information are the foundation of the SCM tool. With the array of business needs, one business
may need to store their product in a cooler area than others, thus adding a variance in what kind
of facility to use. Inventory consists of the materials of the finished or work in progress products.
“Inventory is an important supply chain driver because changing inventory policies can
dramatically alter the supply chain’s efficiency and responsiveness.” (Motiwalla, L. &
Thompson, J. 2011) Transporting products from place to place can get costly depending on how
3Running head: CHAPTER 11 – QUESTION 2
far or close facilities are away from each other. The tool maximizes a business efficiently with
transportation by using nearby facilities from various organizations, thus cutting the cost of
transportation. “Information could be overlooked as a major supply chain driver because it does
not have a physical presence.” (Motiwalla, L. & Thompson, J. 2011) This module helps run a
business smoothly and effectively.
Conclusion
The supply chain management tool is a tool for businesses to help manage, promote, and
make products. It allows businesses to establish relationships amongst competing businesses and
allows them to share off of one another. With this tool, businesses now have a broader spectrum
of resources that they can pull from and use to their advantage. Information, transportation,
inventory, and facilities are the four components that make up this tool.
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References
Douglas M Lambert, Martha C Cooper, Issues in Supply Chain Management, Industrial
Marketing Management, Volume 29, Issue 1, January 2000, Pages 65-83, ISSN 0019-8501,
http://dx.doi.org/10.1016/S0019-8501(99)00113-3.
Retrieved from: (http://www.sciencedirect.com/science/article/pii/S0019850199001133)
Motiwalla, L. & Thompson, J. (2011). Enterprise systems for management (2nd ed.). Upper
Saddle River, NJ: Prentice Hall. ISBN: 9780132145763.
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