Throughout this assessment, different views of the proposed analytical frameworks will be analysed, as well as insights from other authors about Supply Chain Management, Global Supply Chains, Global Value Chain and Global Production Networks, in order to more clearly understand the complexity of the themes addressed. Supply chain Management: Regarding Supply Chain Management (SCM), there are two different frameworks, each one with its view. The first, focused on a mainstream view, is developed by Martin Christopher while the second one is presented by Andrew Cox and it develops a more critical approach. The first gives the reader an understanding of the concept of SCM and how firms can stand over time and become more efficient, through a competitive …show more content…
Although “most writing in the area is primarily focused on the supply chain at an operational level” (Cox 1999, p.169), the framework is focused to the exclusivity that each one has at its entrepreneurial level and is that what best describes each strategy. The focus is mainly to emphasize the absence of a theory behind it when certain writers insist on pushing that idea (Storey et al., 2006). Looking for the Toyota case, company which recognized the impossibility of reproducing the “Western culture” (Cox, 1999:173) and taking into account, the author recognises that the decisions made at that time were not due a specific pre-determined analytical model but simply because of the conditions faced, particularly in terms of the power relations within the chain. It is this concept of power that allows control of certain firms in the network and appropriation of value in transactions when delivering value to customers, coming up the concept of dominant player within a supply chain. As all practitioners wants to hold value, it generates interest conflicts both horizontal, between competitors, and vertical, among buyers, suppliers and
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
In the decade of 1980’s three major changes in supply chain management occurs. First, manufacturers focused on lower operating cost from reengineering cost structures. Second, they improve the customer service rather than costs reduction. Third, to improve the internal integration of logistics within the companies.
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
‘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...
Wal-mart has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution and logistics system adopted by Wal-Mart.
In order to align the supply chain with the organizations operation they must first make sure the supply chain is included in the strategic decisions process along with the senior executives in the organization (Rees...
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,
Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed with other organizations to increase customer service
Global Supply Chains is chains, clusters, networks of firms involved in different activities and stages of production that are linked by the flow of commodities, value, and information. There are many frameworks in enabling us to understand and analyse how a global supply chain is managed, maintained and operates. In this essay I will be examining the strengths and limitations of three analytical frameworks.
This article helps in gaining the knowledge about the supply chain management and the technological aspects of the system. Supply chain management adds value to the organisation and improves the organisation in all aspects. Many of the companies implement these systems to gain competitive advantage over the others. This article also provides the information about the profits and advantages of the supply chain man...
National and International businesses are becoming ever more dependent on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage.
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.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.