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0302361 Operations And Supply Chain Management1

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0302361 Operations And Supply Chain Management1

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0302361 Operations And Supply Chain Management1

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Course Code: 0302361
University: University Of Sharjah is not sponsored or endorsed by this college or university

Country: United Arab Emirates

What resources does supply chain mangement need to have ? explain What & How to use effectively.

Supply chain management is an integral function in many organizations. It refers to the effective control and management of supply chain activities in order to gain a competitive advantage while maximizing customer value (Christopher, 2016). Globalization of industries has resulted to the development of more sophisticated supply chains. The Supply chain activities may involve elements such as logistics, product development, production and also sourcing. Supply chain management builds on logistics since it achieves the link between customers, suppliers and the organization. Besides, supply chain management is based on the building of relationships so as to ensure the profitability along the supply chain grows continuously.
Supply chain management incorporates different resources that are crucial for the success of the supply chain operations. To begin with, we have people/labor. In major logistics and supply chain companies, labor is considered one of the most important cost components. However, in most companies, labor is still an underutilized company asset. According to McCrea (2010), different practices aimed at enacting an all-inclusive labor management program can be designed to enhance efficiency and assist employees define their career paths. In addition, this can help create incentivized bonuses and enhance workforce satisfaction (Russell & Hoag, 2004).
Labor management has proven effective since it has been around for some time. However, it has suffered an image problem since it’s overlooked in favor of better incentives. However, organizations can reap huge benefits if they surround themselves with effective labor management programs since they ensure excellent productivity gains. According to McCrea (2010), if an organization sets productivity goals and follows the goals effectively, productivity can double. However, acquiring those gains will be dependent on a robust framework, an excellent management team, the right tools and lastly an underlying foundation centered on strategy (Russell & Hoag, 2004).
Secondly, we have supply chain processes. As supply chains are globalizing, companies are looking across borders for trading partners and customers. The change in supply chain behavior is primarily a result of infrastructure, energy, and demographics. However, organizations are able to conquer these three issues by also changing the international supply chain behavior as a preparation for the time ahead hence ensuring success. For example, in the Asia Pacific region, supply chain managers are struggling due to poor supply chains thus they are at the forefront of addressing the importance of highly-performing supply chains across the world. It’s is clear that organizations should focus on leveraging scale while remaining local, costs management and sustainability, and market segmentation.
According to McCrea (2010), different components can be employed in creating a globally integrated supply chain. The components include; infrastructure development, supply chain quality, and customer demand. However, one crucial issue that supply chain managers need to address is how to reach consumers on an international magnitude and in an efficient way (Krajewski, Ritzman & Malhotra, 2010). In addition, the incorporation of dynamic supply chains allows businesses from different regions globally to work together in an ecosystem which is important. This is because they can help one another and address challenges more effectively. Major companies hold the view that physical supply chains are better, but a combination of both the product value chain and physical supply chain is more effective. (McCrea, 2010).
Lastly, we have technology. Technology plays a huge role in logistics and supply chain management. Coordination of the flow of freight to and from consumers has been made possible because of technology. Transportation management systems are regarded to be an important and effective supply chain management tool present  in the marketplace (Russell & Hoag, 2004). This means that tips on technology implementation ensures long-term success of startups and also large businesses. Some organizations in today’s age are still managing transportation through faxes and spreadsheets. This means that companies wait until there is a problem before investing in a transportation management system. According to McCrea (2010), revamping a TMS system in an organization has greatly assisted managers to achieve inventory visibility which has been a struggle prior to the introduction of the warehouse management systems.
In addition, technology can be applied efficiently through adopting different forms of supply chain programs. Over the years, technology has proved to have more strengths than weaknesses due to the benefits it provides. Taking, for example, Amazon, technology plays a huge role in its operations. This has reduced lead times, increased efficiency and reduced extra costs hence being able to reinvest back in the business massively.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2010). Operations management: processes
and supply chains. Upper Saddle River, New Jersey: Pearson.
McCrea, B. (2010). Best Practices in Supply Chain Productivity: People, Process, and
Technology. Retrieved from
Russell, D. M., & Hoag, A. M. (2004). People and information technology in the supply chain:
Social and organizational influences on adoption. International Journal of Physical
Distribution & Logistics Management, 34(2), 102-122.

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