According to Mentzer (2001), several organizations have made supply chain management a key competency, particularly inbound logistics to support company operations. This is because its impact on services and products delivery to end consumer. Through supply chain management companies coordinate inter organizational operations for mutual efficiency. According to Brar and Saini (2001) to achieve supply chain efficiency organizations must be keen on their inbound logistics operations. This is because inbound logistics is the starting point of all supply activities in a firm and has an impact on subsequent supply chain activities.
Strategic purchasing is a part of corporate strategic planning pro... ... middle of paper ... ...g costs, improving technological innovation, improving profitability and productivity, diminishing risk, and improving organizational competitiveness. Herbert, Christoph and David (2011) also mentioned that supply chain management is the internal and external integration of a company’s supply and demand management with an idea to replace the view of operations from a single isolated unit to the whole supply chain, spanning from raw material suppliers to the final customer. Plus, integration can goes in a forward as well as a backward direction. Overall, the critical factors which affecting the whole process of supply chain management are the uncertainty of environment, company environment, innovation of information technology, supply chain relationships, value added process, performance for supply chain management, business management and customer satisfaction.
It also specifies how manufacturing, purchasing, marketing, and logistics functions work together to support the desired competitive strategy (Handfield & Nichols, 2002). In this case, supply chain strategy must explains and empirically shows how and why specific information system strategies can be gainfully aligned with different types of supply chains and the results call for attention to the need for fit between the firm and its suppliers in terms of information system affectation and capabilities. Sufian, Monideepa (2012). Yinan, Xiande, and Chwen, (2011) provide managerial implications for executives to select the proper supply chain and competitive strategies to improve performance under different competitive environments. Business competition has been shifting from the traditional firm basis to a supply chain wide basis (Van Hoek et al., 2001; Webster, 2002).
Hopper, Ashton and Scapens (1995) define this as “an approach to management accounting that explicitly highlights strategic issues and concerns. It sets management accounting in a broader context in which financial information is used to develop superior strategies as a means of achieving sustainable competitive advantage (p. 162). The importance of an organisation’s strategy can be noted when implementing control system tools as guidance is required. This often comes in the form of the strategies. Strategy can provid... ... middle of paper ... ...n makers would not otherwise have and will impact the outcome of decisions made for the better.
Supply chain management (SCM) is the management of the torrent of possessions and chattels. It has been demarcated as the "design, organization, execution, control, and checking of supply chain events with the objective of creating net value, building a competitive infrastructure, loading of raw materials, inventories of work in progress and completed goods from point of origin to point of consumption. It includes the movement and based on the worldwide logistics, coordinating supply with demand and measuring performance globally Codependent and interrelated obligations channels and businesses are complex nodes in the supply of products and services required by end customers in the supply chain. The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations.
Logistics and the supply chain work hand in hand. Supply chain management is defined as” a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside in the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value”( Tseng, 2005). According to the textbook, the goal of logistics is to support procurement, manufacturing, and customer accommodation supply chain operational requirements. Logistics is the leadership responsibility to design and administer systems to control ... ... middle of paper ... ...n-412685.html Merriam-Webster Dictionary (2014). Merriam-Webster online dictionary.
Kouvelis et al. (2006) view SCRM in terms of managing the uncertainty of demand, supply and costs. Carter and Rogers (2008) define SCRM as “the ability of a firm to understand and manage its economic, environmental, and social risks in the supply chain” which could be materialised by the adoption of contingency planning and having a resilient and agile supply chains. There are also other notations related to risk management in supply chains. Rice and Caniato (2003) define supply chain resilience as the ability of an organisation “to react to an unexpected disruption and maintain operations after the event”.
The importance of IT in logistics management is highlighted by the fact that customers can track, trace and generate advanced logistics reports so that timely decisions can be made and corresponding actions were taken. Many companies are trying to develop a seamless information system so that more accurate and timely information can be exchanged to help decision-making and provide competitive logistics services (Gunasekaran and Ngai, 2004a). Several
Value chain Value chain model highlights specific activities where the information systems could be applied. This model is set to identify leverage points in which IS could have a strategic impact to enhance company’s competitive position. The value chain perceives firm as a series of interconnected activities that add a margin of value. Those activities can be divided into two categories: primary and secondary activities. Primary activities are inbound logistics, operations, sales and marketing, customer service, and outbound logistics.
This in order to understand what affect the inbound flows have on the total cost of the product. The choice of the right delivery term depends on many circumstances, such as the flow of goods, type of goods or components and customer service required. By choosing the delivery term that provides the company with the most responsibility and cost undertaking when it comes to inbound transportation, a company obtains the greatest possible control of the goods flows into and from the company. By having control of the goods flow, a company can make warehousing, production and transports more efficient, create routines and thereby cut costs. Refresco should revise the use of certain delivery terms that are