Reducing Complexity Levels Within Supply Chain Management Supply chain management (SCM) practitioners are often asked to discuss the top challenges they face in today’s business environment. Since change is constant, the challenges experienced today will at some point change over time. Over all, when taking into consideration all the challenges found in today’s SCM environment, one may wonder how it is possible to effectively and efficiently manage activities within a complex SCM. The answer lies within the decision making and problem solving processes covered this term. Since it is proven that multiple problems are best tackled one at a time, this research paper will evaluate and recommend a best solution as well as provide an execution timeframe and cost analysis of implementing a best approach to reduce the levels of complexity within a supply chain.
Supply Chain Management (SCM) SCM is embedded and influences
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To provide some background, Degan (2013) provides commonly found SCM challenges across industry today. First, practitioners apply incorrect metric models, failing to manage supply chains with in sustainable levels. Second. SCM improvement efforts are prioritized incorrectly, failing to allocate resources in areas that create value added. Third, business performance in certain activities lags behind other key drivers. Forth, businesses today face limited growth in domestic markets, forcing expansion into emerging markets. Such expansion increases the complexity of its supply chains exponentially, to a point become were it becomes difficult to identify problematic areas. Lastly, discovery and retention of SCM talent has become more difficult since this operations management concept is so broad in its scope of activities covered. Such challenges show how SCM has evolved from a simple and manageable supply chain process to a multilayered and complex operations management process encompassing domestic and international
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
Now referring to Blue Bell Company, the shift in supply occurs when they decide to recall all their products and re-evaluate it. Blue bell will more than likely increase the price of the remaining items in the market. This is the result of consumers still providing a high amount of demand for ice cream even though there is less to supply. This theory can be accurately applied to this situation because there is no other solution that they can do to combat the consumers’ need of ice cream. For example, if they do continue to sell at the same price, soon they will not be able to produce as much as consumers want thus eliminating the good from the market.
On the same note, it is well acknowledged that the competitiveness of any organization fundamentally depends on the workforce. Indeed, the workforce is recognized as the heart or living organism of any organization including hotels. It goes without saying that there is minimum likelihood that a restaurant where workers operate in unsafe conditions or are mistreated will offer services and products of the highest quality. Scholars note that employees always desire to work in institutions or restaurants that have high standards of integrity and strive to do the appropriate thing (Fox & Vorley, 2004 pp. 33). This is especially so for the new generation workforce, as well as in attracting the best talent in the industry. A reputation for responsibility and integrity has been recognized as crucial in motivating, as well as recruiting staff especially considering that individuals care about the principles and values that their employers wish to uphold. Scholars note that operating voluntarily to high ethical standards pertaining to environment and social responsibility can result in competitive advantage (Schlegelmilch et al, 2004, pp. pp 254). Customers and civil society groups have been increasingly vigilant in determining whether there is an ethical lapse in the manner in which employees are treated within the supply chain of any organization (Fox & Vorley, 2004 pp. 33). In fact, they have been pressurizing restaurants and other business entities to cut ties with any organization in their supply chain that is not ethical in its treatment of employees. Scholars note that the impression that a restaurant or business entity would create in terms of public relations both on the stakeholders and the customers is highly dependent on the ac...
the inherent supply chain in this industry, which is done through encouraging the collaboration of all these elements in a given project. Some of the unique barriers in the process have been discussed below-
Opportunities of global chain supply management: SCM has various opportunities as its challenges. Some of the opportunities are (DeAngelis, 2010):
The core product offered by the supplier, does not represent the single source of value creation for a business customer. Rather, value emerges from the entire customer-supplier interactions, which represent a pillar in using the core resource according to Gronroos (2010). In the following figure is presented the match between customer and supplier processes, which has implications upon both sides’ businesses, in terms of value creation.
If someone were to be asked what their profession is and they replied with supply chain management, they would likely be met with blank stares and the question, “what is that”? To briefly sum it up, supply chain management (SCM) is the overseeing of flow efficiency and storage of a product from the point of origin to the point of consumption. In the fairly recent past the implementation of supply chain managers has been increasingly more necessary for businesses to cut costs in manufacturing and distribution. Therefore, as technological advances continue to leap forward, SCM is able to be constantly modified to increase the growth of businesses and generate greater profit.
When businesses start making money, the upper management focusses on maximizing speed, but when the economy is bearish, companies try to minimize supply costs. But there is an issue with this approach, companies who become more efficient and cost-effective, they do not gain a sustainable advantage over their rivals. What gives supply chains of Dell, Amazon and Wal-Mart, the edge over their competitors is not their efficiency but differentiating characteristics such as agility, adaptability and aligning the companies with sustainable competitive advantage.
The increased competitions between businesses in the market resulted in increasing product offerings from these businesses which in turn shortened product life cycles. As a result, it has become essential for these businesses to adapt the new technologies to better manage and control their supply chain management. So, experts have identified the successful needed practices to develop more effective supply chain managements.
Storey, J and Emberson, C et all (2006). Supply Chain management: theory, practice and future challenges. International journal of operations & production management, vol: 26 (7) pp: 754-774
Companies are finding ways to improve its flexibility and competitiveness by changing its operation strategy, technologies that have implementation of Supply Chain Management (SCM) paradigm. For example, IKEA. It is the world’s largest home furnishing retailer having 298 stores in 37 countries with huge competitors around the world. However, it has a unique supply chain and inventory management techniques that makes it different and unique from others.
The ability to manage supply chains effectively is a key component of corporate success. Adopting a supply chain management strategy (inventory strategy) that works to minimize costs, enhance quality and efficiency of products and services rendered, and maintain sufficient levels of inventory while reducing associated carrying costs is ideal for all businesses. Achieving such a goal, however, is quite challenging and most businesses adopt inventory strategies that best enable them to fulfill their most primary needs (e.g. reducing inventory costs and delivering high-quality products). Supply chain management relates to “the management and coordination of a products supply chain for the purpose of increasing efficiency and profitability” (Investopedia, 2008). In order to deliver quality products to customers in a timely manner while decreasing operating costs, businesses must have a sound understanding of supply chain management (SCM) and all that it entails.
‘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...
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
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,