SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management

Introduction

Supply Chain Management is a process, operations or network of interrelated activities that enable an organization to provide products and services to the end customers. Supply chain management system of an organization enables them to keep a check or update of movement of raw material, stock, work-in-process and finished products from the origination of the products and services towards reaching the final consumers. The article written by Martindale (2012) has highlighted some of the functions that have led to a change in the supply chain management of an organization. Therefore the report will critically analyse the functions that brought change in the supply chain management and on the same time these functions have create issues as a result of the change in the supply chain management approach.

Discussion

According to a research study conducted by Toyin (2012) many organizations in order to compete successfully in the changing environment of the business world they need to emphasize on the supply chain management practices so that these can have a positive impact on the activities and performance of the organization. A research study was conducted that took a sample size of 31 companies in order to find out the issues related to the changes in the supply chain management of these organizations. The results of the data collected showed that changes in the supply chain management had created issues and resolved many problems of the organizations. The new supply chain management approach has enabled the organizations to develop an effective link between their internal functions with that of their external operations that includes suppliers, customers and all the other supply chain members. The upgraded supply chain approach have enabled these organizations to take advantages of increasing their international operations as the number of international trade barriers have reduced, now better information is available due to adopting technology in order to update their supply chain management system. The supply chain management approach of just-in time is now adopted by many organizations all over the world that have enabled them to bring improvement in their production and logistics system.

Apart from the resolving of many issues there are still some problems that the new supply chain management approach has unable to resolve. Although the supply chain management system has enabled the organizations to expand and spread but the addition of increasing number of suppliers will lead towards a complex supply chain network that will require organizations to develop a complex and complicated system. The improvement in the products and services will enable the organizations to reduce the production time and cost without compromising the quality of the product. Many organizations do not have a flexible management system therefore it is possible that organizations might face difficulty in enabling their employees to practice a new supply chain management approach.

According to another study by Houlihan (1987) the new approach of international supply chain functions have started a new era in the business environment of the world. The new supply chain approach has enabled the ...