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Research The role and importance of Global Supply Chain Management
Explain the importance of supply chain management
What is supply chain management....
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Supply Chain Management Organizations always seek to have an efficient system of running operations. If operations are running smoothly, an organization can cut costs and increase its profitability. Since there are so many organizations offering the same goods or services, competition becomes very fierce. For an organization that wants to stay ahead of competition, efficiency in the supply chain is no longer an option but a priority. Each organization must therefore device techniques of streamlining its supply chain. Simply put, there must be a precise management of movement of goods along the chain. From suppliers, the actual productions until the goods get to the intended customer. Time and quantities of those good is essential to ensure minimal wastage and maximum satisfaction of customers. This essay is going to look at how Gate Gourmet has used supply chain to achieve success in the airline catering industry. Supply chain challenges that Gate Gourmet faces when dealing with demand fluctuations from airlines Gate Gourmet is an airline service providing company that is based in Zurich. It provides food and assorted services for airlines. Given the nature of this industry, there are too many people to cater for, but there is also very little time to deliver those services. Normally, Gate Gourmet has about two hours when a plane stops in an airport. This is the time that is used to clean the plane, take out trash and provide fresh food and drinks for passengers on board. Shah (2011) notes that if that was all Gate Gourmet have to do, then they would have the easiest job in the world. This is never the case, and Gate Gourmet’s job is complicated by the operations of the industry. Normally, Gate Gourmet will require the num... ... middle of paper ... ...al Logistics and Supply Chain Management. Success means getting to the plane on time. 7(11), 211-229. Peck, H. (2010). Supply chain vulnerability, risk and resilience. The case of Gate Gourmet, British Airways Business Review, 6(1), 20-46. Shah, J. (2011). Supply Chain Management: Text and Cases. Airline catering, 4(1), 78-89. Towil, J. (2012). Analysis and design of focused demand chains. Reducing lead time, Journal of Operational Management, 4(3), 100-109. Verma, R., & Boyer, K. (2010). Operations and Supply Chain Management for the 21st Century. Role of suppliers, 7(1), 70-81. Wagner, T. (2011) Manufacturer's guide to implementing the theory of constraints. Reducing lead-time in the organization, 5(2), 90-108. Zigiaris, S. (2010), Supply Chain Management. The future of Supply chain management and SCM software, Innoregio Journal of Management, 3(1), 4-17.
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Montealgre, Ramiro, H. J. Nelson, Carin I. Knoop, and Lynda M. Applegate. BAE Automated Systems (A): Denver International Airport Baggage Handling System. Rep. no. 9-396-311. Boston, MA: Harvard Business School, 1996. Print.
WISNER, J.D., TAN, K. and LEONG, G.K., 2009. Principles of supply chain management : a balanced approach / Joel D. Wisner, Keah-Choon Tan, G. Keong Leong. Mason, OH : South-Western Cengage Learning, 2009; 2nd ed. pp 111-113,262
Ewalt, D. M. & Hayes, M., (2002, Sep 30). Supply-chain management: Pinpoint control InformationWeek. Manhasset, 16-19
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Retail super-giant Wal-Mart has fought its way to becoming the world's largest company. Much of their success can be attributed to providing a vast assortment of products at exceptional prices all under one roof. Wal-Mart began operations in 1964 and has since become the world leader in retail. Today, Wal-Mart is visited by 138 million customers per week at their 4,750 stores. Wal-Mart operates under four basic rules in order to satisfy such a large number of customers: Respect the individual, provide the best service to their customers, strive for excellence, and exceed customer expectations.
British Airways developing exceptional arrival experience for their customers is more valuable to the company rather than customer service worrying about lost baggage; subsequently, any alternatives for improvement outside of Appreciative Inquiry would not provide the customers with an exceptional arrival experience (Cooperrieder & Whitney, 2005). The trade-off between alternatives and Appreciative Inquiry is nullified by the need to provide customers with an exceptional arrival experience.
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
A manager’s ability to regulate a company’s inventory system is very important to an organization. The Space Age Furniture Company utilizes Materials Requirement Planning as an effective means of improving processes amongst the company. If the company continues to utilize MRP systems, there will be much success in transforming the company’s operational intricacies.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Inbound logistics – Low cost, simple to use cost effective reservations system, ticketless travel, pre-assigned seating, paperless cockpits, search engine optimisation and BlueTurn; for minimising ground time.
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.