Question

Evaluate the economic impacts of supply chain management (SCM) and how the development of supply sources, vendors, and logistics builds overall company value into the enterprise. Compare the advantages and disadvantages of SCM and what aspects are most important with the following types of businesses (please prepare a table): global company B2B; Domestic B2C service provider; Web supplier of automotive parts; Consulting services offered world wide; Construction company; Mineral Commodity Exporter; Import jewelry reseller. Judge what role is played by marketing, finance, engineering, customer service, operations, and legal in the creation and foundation of SCM. Critique various SCM schemas based on vendor quality, price, delivery, inventory, and support and weight selection criteria for best overall vendor selections. Choose vendors based on network, flexibility, design capability, customizable depth, unique support services, overall quality standards, location, national resource attributes, economics and financial offerings, and rank each aspect of these vendors to each of the following scenarios: raw material supplier, electronic sub contractor, machinery manufacturer for resale, appliance provider for resale, service resource for systems support, educational institution, specialty hardware IT provider; please provide rationale for each vendor type and defend selection criteria.

Answer 1

Supply chain management (SCM) is the broad range of activities required to plan, control and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible.

SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information and financial capital in the areas that broadly include demand planning, sourcing, production, inventory management and storage, transportation -- or logistics -- and return for excess or defective products. Both business strategy and specialized software are used in these endeavors to create a competitive advantage.

Supply chain management is an expansive, complex undertaking that relies on each partner -- from suppliers to manufacturers and beyond -- to run well. Because of this, effective supply chain management also requires change management, collaboration and risk management to create alignment and communication between all the entities.

In addition, supply chain sustainability -- which covers environmental, social and legal issues, in addition to sustainable procurement -- and the closely related concept of corporate social responsibility -- which evaluates a company's effect on the environment and social well-being -- are areas of major concern for today's companies.

Benefits of supply chain management

Supply chain management creates efficiencies, raises profits, lowers costs, boosts collaboration and more. SCM enables companies to better manage demand, carry the right amount of inventory, deal with disruptions, keep costs to a minimum and meet customer demand in the most effective way possible. These SCM benefits are achieved through the appropriate strategies and software to help manage the growing complexity of today's supply chains.

Physical Flows

Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows.

Information Flows

Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and materials up and down the supply chain.

Managers decide where to locate the company based on costs of production. That led to a lot of jobs outsourcing in technology to India and China, and call centers to India and the Phillippines.

Natural disasters can disrupt any part of the supply chain, thus slowing global growth. In 2011, Japan's earthquake and resultant tsunami damaged enough ports and airports to halt 20% of the world's supply of semiconductor equipment and materials.

The wings, landing gears and other major airline parts are also made in Japan, so the quake disrupted production of Boeing's 787 Dreamliner. U.S. GDP slowed in 2011 as 22 Japanese auto part plants suspended production.