Management

Week 1: “Define Supply Chain Management”

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In no less than one paragraph discuss your definition of Supply Chain Management and its role in a company’s ability to compete effectively in the market.

Instructions: Your initial post should be at least 250 words.

ANSWER

A supply chain refers to the network that exists in markets between companies and their supplies with regards to production and distribution of products and services. In other words, it refers to the conversion of raw materials into finished products and in the hands of final consumers. Supply chain management, therefore, refers to the objective of businesses to streamline the process of supply to maximize customer value and similarly, gain a competitive edge on the suppliers dealing same or closely related products. The process of building a supply chain is also important since it enhances a reduction in overhead costs ensuring businesses remain competitive. Although the phenomena have been applied for a long period, it is only recently that it has been seen as a means to add value-add to their operations.

The role of a supply chain management in a company’s ability to compete effectively in the market is majorly determined by cost by a reduction in purchasing, production and total supply chain costs. It covers everything from inventory to sales and is fundamental dot any company involves in production and distribution. Other advantages associated with the supply chain include an improvement in customer service since products will be availed at the right locations and on time and also after-sale support will be offered. A supply chain also improves the financial standing of a company by an improvement in the profit leverage, a decrease in fixed assets and an increase in cash flow. In the current market situation companies are encouraged to build and maintain an effective supply chain if at they hope to remain competitive in future markets.

References

Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.