Supply Chain Management



Supply Chain Management

Introduction

Durham International Manufacturing Company is a big organization, having a requirement of multiple raw materials and having various suppliers. The company has already implemented supply chain program within the organization and has integrated internal activities. However, the company now requires integrating its external activities and including its suppliers within the supply chain management program. It will reduce transaction time and the inventory and raw material would be available to the company, whenever it is required by the company. It will improve the overall efficiency of the company. It is now time that company implements its program. The importance of supply chain program for Durham Internal is discussed below.

Discussion

The term Supply Chain Management tends to be interpreted as the process of planning, execution and control in terms of reducing the flow of costs of raw materials, WIP, finished goods, services and related information from point of origin of the application to the point of consumption (including imports, exports internal and external displacement). Moreover, the mechanism of the Supply Chain Management intends to achieve the customer satisfaction. The essence of the concept of "supply chain management" is to examine the logistics operations throughout the entire product life cycle, the development, production, sales of finished products and after sales service.

In the light of the research it would be safe to state that supply chain management is a business strategy that ensures effective management of material, financial and information flows to ensure synchronization in distributed organizational structures. Moreover, Supply Chain Management is designed to automate and place an effective control on all stages a company tends to pass through inculcating the control of goods movement in the enterprise. Supply Chain Management intends to meet the demand and effectively manage the company's products and significantly reduce the cost of logistics and procurement (Christopher, 2005).

Supply Chain Management encompasses the entire cycle of raw material purchasing, production and distribution of goods. Thus, in the context of the paper we intend to shed light on a company which tends to fall in line with the requirements of the paper.

Significance of Supply Chain Management

Supply chain management affects all factors of the shareholder value of a company which includes cost, customer service, productivity and revenues by reduction in inventories. In addition to the Strategic Planning, Supply Chain Management is the most popular methods for several operations of firms. Nowadays, companies emphasize to work in networks as the companies working cooperatively produces in more quantity and at a cheap cost as compared to the one producing alone. By implementing integrated supply chain management systems, companies can reduce costs, increase revenue, improve service, reduce time to market and use their capital more efficiently. Some benefits associated with an efficient supply chain management are:

1.Reducing the cost of inventory management, transportation, storage, and packaging

2.Increased customer satisfaction through the ability to give online orders and configure their orders

3.Better service through techniques such as just-in-time and contract manufacturing

4.Increase revenues through greater availability of products and their ...