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Supply Chain Management Case Study

Satisfactory Essays
Supply Chain Management: The Heart of Industry

Over the past two decades there has been a rapid growth and need for individuals who specialize in Supply Chain Management (SCM). SCM is the central planning of all industrial work and is the logistical motor that keeps the manufacturing world running efficiently; keeping a company's goods and services in constant supply to their customers: “A fundamental element of any business strategy is the supply chain process or strategy to deliver goods and services to the consumer” (Thomas, 2010). SCM requires a disciplined understanding and the use of fields such as economics, computer systems information and marketing. There is a great difference between a company that has an efficient SCM system with one company that has an inefficient supply chain affecting a company's entire resources from labor productivity to consumer loyalty. According to Rhonda R. Lummus (1990) "Interest in supply chain management has steadily increased since the 1980s when firms saw the benefits of collaborative relationships within and beyond their own organization" (p.11). Supply chain management is the brain-trust of any business strategy and when an effective model is put in place the benefits are shared by consumer and producer alike.
“What is supply chain management?” Before we can answer this question one has to understand that the basic tenants of SCM is to have managers whom have skills and competencies (Gammelgaard, 1998). What is meant by skills and competencies? While all good and successful employees and workers are skilled and competent, SCM requires that theses skills cover general, context-independent knowledge (Gammelgaard, 1998). When one researches SCM one soon discovers that it is connected w...

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...M, over the past few years, has proven itself as a major staple in the running of a business. There is a high demand for the skills that organize a company according to function and communication. The job skill sets are encompassing of many different disciplines and has one major goal: To streamline an organizations model in order to bring better and more effective service and goods to the consumer. The main purpose of a company's existence is initially to make a profit, but eventually, that goal transforms into maximization of profit, and it is here, that supply chain management becomes indispensable for a company, as we have seen with the example of Hewlett Packard. It requires experience know-how in order to treat many of the real world problems in an increasingly shrinking world and to make it look-like it was smooth and flawless in the eyes of the customer.
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