Supply Chain Management

Supply Chain Management

Introduction

This report will focus on effective supply chain management by highlighting ten traits of supply chain management described by Poirier, Quinn & Swink. The report will include Supply Chain Maturity and effective Strategy for supply chain along with its financial impact. The report will also cover process management, innovation, collaboration, supply chain strategic sourcing and planning.

Supply Chain Maturity

The supply chain maturity model is comprised of five different levels which are enterprise integration, corporate excellence, partner collaboration, value chain constellation and full network connectivity (Poirier et.al, 2009, pp. 55).



Enterprise Integration

Under enterprise integration level, loosely defined supply chain teams are formed. These teams are responsible to focus on the suppliers and usually decrease the number suppliers and also negotiate with supplier on lower prices. The research showed that the formation of supply chain teams led to higher profits (Poirier et.al, 2009, pp. 55).

Corporate Excellence

Under corporate excellence level, process maps will be enhanced to other organization's departments and functions but stay inside the organization. It is known as intra-enterprise basis. In this level, the organizations focus on entry of the order, its processing and management. The amount of time consumed by each of the above mention process is also considered in this level. It helps in locating error and removing them (Poirier et.al, 2009, pp. 55).

Partner Collaboration

Under partner collaboration, the organization is supposed to develop a culture of sharing information with the significant partners such as supplier. It has been seen that the organizations do not share information with any individual outside the organization therefore there is a need to change the culture of the organization which is difficult task but it is necessary for having effective supply chain. The main reason that the top management seemed reluctant is the importance of information and doubt that the competitor will get it. The contracts with partner can serve the security concern (Poirier et.al, 2009, pp. 55).



Value Chain Constellation

Under value chain constellation, the organization used to enhance the use of technology and collaboration externally. It helps the organization to achieve optimum level in the supply chain of the organization. The best example for value chain constellation is the enterprise resource planning (ERP) which helps the organization in tracking and managing the supply chain process (Poirier et.al, 2009, pp. 55).



Full Network Connectivity

Under full network connectivity, nearly all transactions are carried on ERP and a paperless working environment comes into existence. Each and every transaction is automated. Here, all organization's functions are collaborating and important entities are working as network partners. Organizations become able to recognize changes in demand, environmental threats and economic conditions (Poirier et.al, 2009, pp. 55).



Financial Impact

The research showed that the impact of effective supply chain management is not only on schedule of process but it also affects the company's profitability. In the wake of financial impact, the organization used to involve the chief financial officer in the decision making process of supply chain. The organization needs to evaluates that the centralized distribution of ...