Supply Chain Management
Organizations increasingly realize that they need to rely on supply chains to compete successfully in the networked global economy. During the last century, globalization, Information technology and outsourcing has aided many organizations to successfully establish solid interlinked and collaborative supply relationship in different regions of the world (Ballou, 1999).
Later in the 21st century, proliferation of joint venture, multi-national companies, business partnerships and strategic alliances greatly succeeded on the platform of the earlier agile manufacturing and lean management practices. Supply chain management should be enhanced locally and internationally since it has aided greatly in increasing availability of products to the consumers globally. Besides, it has ensured harmonization of commodity prices internationally and increased global cooperation of organizations and states through vertical integration and enhanced outsourcing .
This paper explores supply chain management strategies and it’s importance on a global scale to enhance increased access of products to the world. Besides, ethics that undermine the process are analyzed with orientation of drawing respective conclusion. Finally chain supply management logistics are evaluated with clear comparison that recommends specific alternatives for increased efficiency in the supply channels. Supply chain strategies
According to Hult (2006), supply chain strategies are the methods used to identify and quantify the
Need essay sample on "Supply Chain Management"? We will write a custom essay sample specifically for you for only $ 13.90/page
(a). Value chain assessment and optimization This strategy assesses the present capabilities against the established target for the business objectives and goals. It aims at optimizing the supply chain business including financial, network and tax consideration (Lavassani, 2008). An overall evaluation is established with ample research and previous data relating to the chain supply achievement for improving the system thereby increasing the speed and efficiency in delivery of the consumer products.
Improvement on strong areas of the business and reevaluation of the weaker ones ensures that the business remains competitive and therefore profitable. While profit optimization is focused on Regional and departmental improvement, proposals are compared with the immediate short term targets, long term targets and alternatives for the chain management in order to improve the current networks based on the financial ability (Hult, 2006). (b). Value chain transformation
This strategy is mainly result oriented with focus on transformation directed to the improvement of consumer services, asset utilization, operation flexibility and product quality which ensures that the products attain an unrivaled niche (Simchi-Levi et al, 2007). With the understanding that the consumers are the most important aspect for business to be successful, the finished products must be of the best quality possible to be accepted fully. In order to maintain the consumer goodwill for the products being offered, customer services and operation flexibility must be greatly enhanced.
Therefore, chain management through this strategy improves the financial performance to encompass lean management modes which eliminates all the wasteful sections thereby improving the overall efficiency in products delivery to the consumers (Lavassani, 2008). (c). Value chain system integration. This strategy enables integration and cooperation in the transactional system and the tools for decision making to increase operational effectiveness through expanded strategic decision making.
Consultation with the key partners in the chain supply management interlink ensures consideration of the required information necessary for making the correct decisions on the products production and supply (Simchi-Levi et al, 2007). Outsourced partners roles, responsibilities and immediate tasks are therefore entrenched in the system to act as the basic platform for the overall goals and objectives realization. Also, areas of further integration and collaboration are highlighted out for future growth of the business (Ballou, 1999).