In: Operations Management
Before you conduct the research, you may study:
Relevant textbooks (e.g., Supply Chain Management, Operations Management) on these subjects.
Supply Chain Management (SCM) is the integration of key business processes from initial raw material extraction to the final customer, including intermediate processing, transportation, and storage activities and final sale to the end customer. Today the practice of SCM is becoming extremely important to achieve and maintain competitiveness. Many firms are just now beginning to realize the advantages of supply chain integration.
(a) Discuss the strategically important reasons for adopting Supply Chain Management?
(b) SCM is not without problems. Adopting SCM often involves
risks and negative
consequences. Other than the
Bullwhip effect, what are the potential negative aspects
(e.g.,
drawbacks, risks, any other
undesirable consequences) of Supply Chain Management? You
may utilize current real world
examples (e.g., Coronavirus Pandemic) in making your
arguments.
(a)
Supply Chain Management(SCM) is an important part of every organisation, whether it is small or large, SCM is the active management of supply chain activities to maximise customer value and achieve a sustainable competitive advantage, according to Robert Handfield, Ph.D.SCM also deals with the movement and storing of materials needed to create a product, as well as inventory management, and keeping track of finished goods from where they were created to who they go to. Bottom line: there is no overstanding the importance of Supply Chain Management.
According to SCM experts, it is also defined as the design, planning, execution, control and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. The other areas that SCM is related to are operations, logistics, procurement, and information technology.
If companies use Strategic Supply Chain Management, the organization is then able to function at optimal capacity to provide and distribute various products and materials.
(b) following are the potential negative aspects of Supply Chain Mnagement,