Supply Chains



Table of Contents

Introduction3

Importance of Effective Supply Chain Management4

Supply Chain Management in the Global Firms7

The Reasons Why Supply Chains Fail8

Risks of Supply Chain11

Conclusions and Recommendations12

References14

Supply Chains

Introduction

Supply chain management has increasingly become a strategic necessity for corporations. In recent years the validity and necessity of a robust and effective supply chain methodology has become evident with announcements of major schedule delays by aerospace corporations due to unknown and unforeseen supplier and internal inefficiencies and unacceptable performance. All leverage and cost gains are being lost in alternate work strategies driven by schedule delays and the demands of customers or consideration. Interest in any and all performance improvement techniques and methodologies to address these performance and oversight issues are being pursued. The supply chain starts with suppliers and ends with our customers. Includes intermediate activities, from the processes of supply, storage (both raw materials and goods in process or finished goods), the logistics of product distribution, sales planning or production and programming of the plant.

Supply chain management has roots in the focus on lean and efficient manufacturing. These lean efficiencies were driven by corporations initiating cost saving changes to the business process. Supply chain management is seen as a process-driven approach to streamlining the business. High-tech industries streamline by moving facilities closer to the customer, automotive manufactures developed just-in-time delivery, while the consumer industry achieves supply chain efficiencies through demand driven networking (Gattorna, 1998).

Understanding the market and developing the appropriate supply chain best practices increases stability at the same time it decreases risk and associated costs. Increasingly business is looking for “leaner” efficiencies outside of the expected manufacturing environment. The entire business structure is under review, specifically interactions with customers and suppliers, in short the supply chain.

The factors that make the goal of supply chain can be said that both the quantity, quality, time, and cost are driving factors, and, coming to depend on demand, and this is not constant, the quality demands Once they are older, delivery times are variable, costs vary. This dynamic makes it difficult to manage so it is necessary to use information technology so as to facilitate decision making. The five elements in a supply chain are: Suppliers, Transports, The Company, Retailing and Customers (Hugos, 2011).

Importance of Effective Supply Chain Management

A relatively new management process that had great momentum in the past decade and generates significant cost reductions by allowing companies greater competitiveness and higher profits. In the new millennium, competition occurs between supply chains rather than between individual companies. The management of the supply chain revolves around the efficient integration of suppliers, manufacturers, distributors, and retailers in this way is achieved substantially reduce costs and at the same time improve customer service levels.

The management of the supply chain covers the following areas: network logistics, warehousing, inventory management, purchasing, strategic alliance, information technology and telecommunications as key elements in communications and decision making. Companies that want to succeed need to streamline their processes in all areas. Sustainable Supply Chain Management is a company-wide management approach to control ...