Question

Outline and briefly explain the following:
a) What Supply Chain Management (SCM) is;
b) The key benefits and problems with SCM systems;
c) What are the likely future evolutions of SCM systems.

Answer 1

a) Supply chain management is described as the process of management of the how the goods a d services are flowing from the inbound to the outbound logistics, how the storage of raw materials, work in progress inventory and the finished goods take place and travel from the point of production to consumption.

b) The key benefits of supply chain management includes the variety of suppliers are the resources available the business for operation the actions. It helps to improve the exisiting relationships and communication with the customers and suppliers. It also helps in decision making and purchasing orders. Although the supply chain managemet also have some problems associated with it. The lack of transparency where nobody knows what is being produced and provided. High costs of management, wastage of time, slow workforce for the delivery etc are the hinderances that could be created while managing the supply chain. Although, an organisation can effectively plan and organisation to make these problems go.

c) Talking about the future of the Supply Chain Management, on can expect to see a more drastically designed system which is more efficient and transparent for the SCM. Fewer resources would be required to serve the customers which would reduce the cost. Technology would be the sole binding of the supply chain management as it would use to join the management forcesand different departments with not only organisations but with the customers to effectively generate the output.