Significance of Supply Chain Management in an Organization (Research Paper Sample)

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Understanding the current and emerging trends in supply chains is critical in global market. This trends enhances the business remain relevant and competitive in the market and management are in a position to remain proactive. Supply chain technology continue to evolve throughout as companies realize viable supply chain is essential in steering business to success in the existing competitive business arena. Information and technology trend is vital in impacting supply chain in business environment CITATION Rob03 \l 1033 (Roberts, 2003).
The economy continues to recover from fallout of previous years and explosion of highly skilled supply chain management is expected to assist in recovery of the business. Supply chain operation seems complex since it entails managing entity relationships, flow of goods services information and finances and the objectives strategies and policies of the business all under one common framework. Mainly, supply chain operation is developed to account for risk and uncertainties that are presented by both internal and external factors within the business CITATION SUP13 \l 1033 (TENNESSEE., 2013). In this consideration, supply chain requires reconfiguration regularly in order to fit in gradual change that exists in business environment.
In this research paper we focus on the dynamic business environment and how the current trends and issues of supply chain operate. This will be achieved through consideration of unique system of structure, dynamic design and modeling of supply chain and how they contribute to effective and competent business.
Literature review
With the general growth of business environment in the world, it is hardly surprising that the relationship between supply chain and business has attracted a considerable attention in the research field. Much of the work pioneering supply chain research has exhaustively offered a wide discussion of current trends and supply chain management. According to Lambert on his article contained Supply Chain Management journal he presents a logistic framework that measures the performance of supply chain management in order to identify the effectiveness of supply chain in the firm. The measures identified in the supply chain of the firms focuses on measuring internal logistic operation of the firm such as lead time, damages and on time performance CITATION Dou08 \l 1033 (Lambert, 2008). According to him, the existing logistics in the supply chain do not meet the expected criteria on the current business environment. This pertains to the logistic failing to effectively capturing the inventory measurement since different product cost, form and risk with the supply chain is not considered. A well-defined logistics in a firm entails material management in order to control losses that arise due to waste and damages, channel management and distribution that entails how goods within and on the market flows and effective supply chain which controls all activities within the firm CITATION Dou08 \l 1033 (Lambert, 2008).
A firm with well-defined logistics enhances good relationship between the customers and the suppliers facilitates goods flow of information and reliability of the demand information enhancing high efficiency. Understanding of the customers is essential in this drastic growth in business system in order to adapt to the wide demand of the customers and situations. This improves demand chain due to cooperation that bolster between the firms and the customer that furthers superior demand chain efficiency and customer utility.
Martin Christopher in his article notes that currently supply chain lays a crucial role in creating competitive advantage. In the past firms focused on cost optimizing tactic but a strategy shift to value creation, delivery and logistics that extends relationship management across complex network that supply chain has become. The existence of unpredictable supply chain in the business has enhanced volatile business environment that require turbulent supply chain that is dynamic in adaption to the changing business environment CITATION 410 \l 1033 (Christopher, 2010).
Many scholars have debated on areas of improvement in businesses in order for supply chain to operate competitively. Improvement on efficiency within the supply chain seems to be the key factor that the firms should capitalize on to ensure the objectives are achieved. Technology investment increases efficiency, effectiveness and expansion of the business production. Improvement on technology is an emerging trend that firms have adopted to bolster their operation with the supply chain and attempts to remain competitive and relevant in the market.
During the review of literature in New Direction for Developing Economies article contained in Supply Chain Management Journal it emerged that efficiency provides quality services by use of small input in resources possible. Moreover, effectiveness of efficient services is not obliged and thus maximization of value of firm products retains the utility the customer desire. Basically, supply chain efficiency is the solution to firm optimization of all usable raw materials and accurately reflects the picture of the firm inventory. Effective supply chain that upholds efficiency assists in monitoring goods and assets of the firm. It also assists in reduction of operational cost increase in production and demonstrates sustainability. This assures the customers of greater reliability to the firm in delivery of products and improvement on traceability of the products. This reduces the losses incurred during productions since monitoring of goods and assets in the global supply chain are enhanced.
Firms that produce goods that arte efficient to the customers are bound to be more successful in the market. Dominancy in a competitive business environment is determined by operation of supply chain within the business through production of efficient production in the market. Tastes and preference of the customers are different but effectiveness of the product towards their intended function will enhance increase in demand of the products. Moreover, efficient advertisements enhance wide market and this solely depends with the structural framework of the supply chain.
On resource allocation supply chain adopts a quality control system in ensuring material flows as expected in order to reduce loss and cost of production. Resource allocated in the supply chain determines the type of the products and services a firm offer in the market. Moreover, it determines the quality and the prices of the final product and the lead times that is essential to meet the market demand. The supply chain that controls the production cost efficiently present competition advantage in the operation of the firm and in market place. In the current trend there exist forces such as technology change, quality of the product that needs to be obtained through effective supply chain management.
Firms do not sufficiently meet the resources to satisfy the all potential customers or market segments. Thus the firm must ensure they focus on selected customers and segments that offer best exchange opportunity for the value created in the organization.
Companies recognize that supply chain performance on dimensions of stock availability and on time delivery were critical in buying process. Thus development of a standard and uniform level of service delivery to customer was essential. The focus of the system should be achievement of internal performance goal and targeted operating standards as indicators of success and overcoming shrinkage in the business.
On inventory there exists literature that discusses its essential in ensuring a firm maneuver in business environment. A supply chain that has integrated inventory and customer driven fulfillment system ensure substantial share in the market. This is achieved through adoption of policies that provide replenishment and allocation strategies that easily execute customer demand offers availability of inventory plans CITATION Dou08 \l 1033 (Lambert, 2008). Technology enhances stock control through adoption of software that fits in the supply chain and it operation in the business. This promotes the business objective through minimization of operational cost and the capital injected in the business.
Customer service to customer relationship management has been emphasized in Game Changing Trends in Supply Chain article. Creation of a supply chain that reflects the insight of customer, loyalty and segmentation information in line with the channel of demand forecast, customers demand and promotional demand. Adequate inventory in the market is vital to ensure customer demand is met and this depends with competence of the supply chain adopted. In this case, an inventory optimization system could be a solution to ensure timely product availability in the market through incorporation of merchandiser and master data in the supply chain. The article also considers a supply chain that can forecast demand and enhance absolute value of the firm that attr...