Supply Chain Management

Supply Chain Management

Introduction

Supply Chain Management is one of the most important aspect of every business. It helps the companies in managing and organizing their work and in making sure that they are not running out of stock. This is very important network for the company as it helps it to make sure that the finances of the company and the inventory are in line with the requirements of the company. It helps in managing the coordinating the activities that is related to the company. The flows of funds and resources is managed by the supply chain department and helps in making sure that the inventory is reduced and it is not kept idle for many days. The main goal of the supply chain management of any company is to make sure that the inventory is converted to finished goods and is not kept idle. This is how the company is able to reduce costs and produce more to earn more.

There are lot of softwares that are introduced and are in the market to make sure that the company does not get out of stock and is able to produce appropriately. There are many flows of the supply chain management. First, is the product flow. This includes the movement of the goods to the customer from the supplier and includes the information of the status of the order and the delivery. Next, is the financial flow. It consists of all the payment terms and schedules and helps to know the amount that is related to the inventory needed and for the process. The information flow helps in updating the related department about the orders that are in process and as to how much production is needed by the company to fulfill the needs of the customers and to reach the required level of sales.

Business has become increasingly competitive due too many factors. Business has become increasingly global and many companies are diversifying to enter new markets. A factor which companies have become increasingly aware of is supply chain management. A supply chain connects supplies with customers Supply chain management has become an important for companies to evaluate and research because improper management can lead to can hinder performance. Therefore, increased evaluation and research in proper supply chain management is essential for businesses to maintain a competitive advantage. This paper is going to analyze supply chain management a retail perspective to new learning perspectives of modern businesses (Gardner, 2010).

Discussion

For many years supply chain managers had difficulty determining the optimal amount for their inventory levels. For example, in Wal-Mart the company has to determine how much inventory to include in stores in comparison to a just in time approach. Research has indicated that improper supply chain management in South Africa can lead to inefficient company performance. Therefore, improper evaluation of inventory can increase costs for the company and decrease sales to lack of inventory. For example, typically businesses would replenish inventories when the inventory is low. The supply chain manager of the ...