Introduction to Supply Chain Management

As soon as an idea turns into a project, the organisation of the supply chain becomes vital to providing a quality service to the client yet at a minimal cost to the company involved. Vertical interpretation is required to deal with various constraints that arise in various stages of the project with the aim to keep the problems down and the efficiency high. Throughout this paper the author will describe how supply chain management (SCM) helps bring systems together to present a desirable outcome and the issues and practicalities that are involved.

John Hicks (2004) suggests that there are three main methods to help deliver the systems within budget and for them to perform smoothly, these are called ‘runners, repeaters and strangers’. These methods require different strategies in relation to stock, storage and production to maximise turnover. ‘Runners’ are used where the manufactured core goods are continuous and form the bulk of the production volume in any given period. This supply chain will be focused on component cost, quality and the supplier’s delivery performance. The ‘Strangers’ supply chain is different as it needs to be ready for irregular customer orders and the focus will be more on supplier lead time and the ability to meet these hard to forecast demands. ‘Repeaters’ is a supply chain that requires a mix of both regular manufactured goods but with the customer flexibility aspect still involved. This system uses storage of goods and materials which enables maximum efficiency.

Customer service is vital for a successful supply chain and the client’s demands and needs must be met at a high standard. A good relationship with the buyer will help with any issues that arise and it increases the chance of repeated b...

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