Supply Chain Management

SCM QUESTION

There are a number of inter-related strategies, which can be used to support and promote effective supply chain management.

a) Discuss the strategies available to support supply chain management, and explain the likely benefits, which you could expect from their implementation. Show how the strategies support each other, and give examples to support your answer.

b) Select one foundation strategy and what of the strategy, explaining why you have selected them and discuss in detail how you would go about the implementation your use examples to support your answers.

Answer to a)

Stock and Lambert (2001, pp.2-3) classified Supply Chain Management as the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. After interviewed top supply chain management executives in 20 leading companies in the United States, Mentzer et al. (2001, 437-461) defined Supply Chain Management as the systemic, strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain, for the purposes of improving and the long-term performance of the individual companies and the supply chain as a whole. Based on the definition, they reproduce the following Supply Chain Model as shown in Figure 2.1 below. Mentzer et. al. (2001, pp.431-461) suggested that, as indicated in the above figure, a Supply Chain encompasses all organizations and activities associated with the flow and transformation of goods from the raw materials stage, through to the end user, as well as the associated information flows, both up and down the supply chain. The ultimate objectives of a supply chain are indicated in the triangle in the right, which are customer satisfaction, value, profitability, and differential advantage. Thus the activities and strategies of an organisation should support the building of an effective supply chain. For example, even if marketing and sales could attain lots of orders but the supply chain were ineffective in providing the goods being ordered, the ultimate goal of the supply chain had not work out. This is especially crucial in e-commerce.

Supply Chain Model

Source: Mentzer, J.T. et al. (2001, p.439)

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