Supply Structure Of A Supply Chain Network

2345 Words10 Pages
A supply chain network is the sequence of processes that are entailed in the production and distribution of goods. In the modern business environment, companies are relying on their strategic supply networks to deliver their products to the potential clients’ place of convenience. Before organizations focus on supply chain management, the business leaders have one main task of determining what the entire chain encompasses. A clear definition of the required supply mechanisms enables companies to have their goods delivered to the customers in good time, and in good shape. A supply network usually requires a multiplicity of relationships as well as numerous paths through which both information and products can travel. In this case, a supply network showcases of a chain of participants whose engagement ends up delivering the products to strategic locations where the customers can access them with ease. To be precise, a company has to scrutinize its internal capabilities and the supply chain’s external resources with a major aim of fulfilling the customer’s requirements (Graham & Mark, 2016). The supply network is thus meant to meet the needs of the customers if the involved company is in pursuit of competitive advantage in the industry. This aspect creates the impression that all business organizations ought to concentrate on establishing credible supply networks since their rivals are also busy trying to expand their market share. Due to the importance of supply networks in the business environment, different companies employ unique practices to ascertain that they satisfy their client’s needs. It is also necessary to note that supply networks are usually marred by challenges that if not solved appropriately can end up hindering c... ... middle of paper ... ...re required to facilitate efficient decision-making. In this case, the supply network mechanisms that worked five years ago may not be applicable today. The company is thus forced by circumstances to maintain a continuous observation to ascertain the necessary improvements are made when needed for efficiency purposes. Supply chain operations are complex in nature hence the need for a company to set aside adequate resources to deal with all the emerging complications. The case of Coca-Cola is characterized by the company’s overreliance on an old distribution system rather than investing in a modern supply network concept. The cost of utilizing new technologies in supply networks is high considering the fact that it is a burden that has to be incurred by the company. As such, Coca-Cola has a long way to go in the pursuit of operating under a credible supply network.
Open Document