Management

Please answer the following questions after reviewing the reading and lessons for Week 1.

1. What is your definition of supply chain management?

2. List and describe the components of supply chain management.

3. What are issues or challenges facing today’s supply chain?

ANSWER

Supply chain management is the proper follow up and control of all the supply chain operations aimed at attaining the exemplary consumer value and accomplish a sustainable competitive advantage. The process represents a constant ability by the supply chain industry to create and maintain supply chains in the most beneficial and valuable ways achievable. Supply chain operations incorporate everything from merchandise creation, sourcing, and logistics plus the information structures essential in controlling these operations. The concept of supply chain management is based on the idea that every item that reaches an end user gives the cumulative advantage of several organizations.

Components of Supply Chain Management

Planning is the first component that involves scrutinizing the demand for the item or service, the viability, profit and costing. Minus the needed scheme, it will be hard for the business to accomplish the needed effective and long term advantages. Sourcing is the second component which engages procuring the raw materials and other components the business plans to outsource (Oettmeier & Hofmann, 2016). The process needs to occur at the best needed cost, at the appropriate time, and in the right quantity. Location also plays a significant role in supply chain management because any business than needs to grow, needs a location which is profit able for its operations.

Issues facing Supply Chain Management

There are enhanced costs in the entire supply chain where the profit margins are under pressure during the supply chain system. These expenditures originate from several areas, and a lack of accountability and visibility. Supply chain complexity arises from several channels to market. Clients get their goods across diverse avenues, and as paths to market increases, the fundamental supply chain should implement. Still, single source increases supply chain risk and for many reasons, different industries have focused on single-sourcing approaches, possible because it has been perceived as the lowest cost mechanism.

References

Oettmeier, K., & Hofmann, E. (2016). Impact of additive manufacturing technology adoption on supply chain management processes and components. Journal of Manufacturing Technology Management.