The system of an organisation, people, activities, information as well as resources that move a product or service from supplier to customer end is called the supply chain. Supply chain converts raw materials and other inputs into a finished product that is supplied to the end customer.
What Is Supply Chain Management (SCM)?
It is the management of the supply of goods and other serviceable materials and related processes that converts raw materials into final products. It is related to the active streamlining of business product supply to increase customer value and gain an advantage in the business environment.
SCM means an effort by suppliers to develop and implement supply chains that are most efficient and economical that may be possible. Supply chains include everything from production activities to the development of products to the system of information that is required to make business profitable.
A manager of supply chain system coordinates the various activities including logistics of related features to supply chain which comprise five activities as indicated below:
- Planning to determine the strategy
- The raw material resource and allied services
- Manufacturing motivated on productivity and efficiency
- Delivery of product and logistics
- The recycling of waste materials including defective and undesired products.
A manager of supply chain attempt to minimize the shortages and so as the cost of production goes down. The job is not only related to logistics and purchasing inventory only. Responsibility is also considered equally important that involves making recommendations to upgrade productivity, quality, as well as the efficiency of operations to manufacture products.
SCM or Supply chain management operates centrally by managing the flow of goods and services and comprise all activities related to production. Organisations can cut extra cost by managing the supply chain also by quickly delivering the products to consumers. An efficient supply chain management keeps the reputation of their organisation.
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A case study is an enquiry that researches a contemporary activity inside real life, particularly at the event of two boundaries between phenomenon and context. Case studies are applied as a research work by taking into account the contemporary factors, at the same time limiting the extent of the analytical activity.
The methodology of the case study depends upon its ability to capture the development of new supply chain concepts. The quality of research and designs are ensured by aiming for validity and stresses. The excellence of qualitative research is addressed especially through procedural reliability and validity.
In the case study, phenomenon and context are not evident. Case studies are used as a research process by taking account of the contextual factors. At the same time, it limits the extent of the analysis. Case study allows in-depth study into emerging fields resulting basic comprehension of fuzzy and messy issues The strength of the case study method rests on its ability to capture conceptual development in supply chain business.
This phenomenon of Supply chain management is vital for business houses that produce and deliver goods as well as services. The transformation from a single company to a branch of whole supply chain indicate the requirement of recognition, as well as refinement of engineering , strategic management or theories of the business organisation.
A highly competitive business environment has made the company like Walmart to concentrate and follow innovative processes and systems to reorient its supply chains and make them highly efficient. Walmart is in the process of integration of its supply chains with its major clients. Wal-Mart is considered as an innovator in SCM, which has benefitted it to provide cheaper merchandise to its customers and in dominating its competitors.
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Challenges that are faced by supply chain management are enumerated below:
In the event of globalization of manufacturing practice, that has produced a global procurement network. This network can support and satisfy the needs of the supply chain is a vital issue. According to several procurement companies, selecting a strategic supplier that can manufacture and can locate with consistent global quality and dependable local service, is posing a challenge to supply chain related companies.
The high demand for manufacturers to manufacture products of premium quality and safety are highly challenging task. The number of product return cases has an increasing day by day damaging reputation of the related company seriously.
Less time, less inventory, better productivity
To lower the product life cycles and change of market demands, companies are forced to run at a lower capacity. It is very important that the supply planning with a lean business environment always support operation planning.
Consolidation of a supply base
The issue of strengthening the supplier base can be an advantage. It lowers the rate of fluctuation of the supply base as well as its overheads. It is a challenging issue in identifying a supplier with solutions and experience in the supplier-based environment.
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