Supply Chain Management

Introduction Supply chain management (SCM) utilises science and art in its set-up. It also works to improve process of acquiring raw materials. Additionally, it makes and transports products to consumers. SCM has five basic components, which enables it to improve efficiency in companies.Advertising We will write a custom research paper sample on Supply Chain Management specifically for you for only $16.05 $11/page Learn More These include plan, source, make, transport and return. These components of SCM ensure that product chain is managed efficiently. The need for efficiency has also incorporated use of SCM applications. Consequently, each of the named components has its software. This paper will explore SCM (Handfield, 2011). Supply Chain Management (SCM) As stated earlier, SCM involves strategic chain of events that begin by acquisition of raw materials and ends when the product is delivered to the consumer. In most cases, these processes are tedious because of the complexities involved. It is therefore necessary that companies exercise efficiency in SCM. It should also be noted that companies have invested large amounts of resources to improve their supply chain. Management of supply chain is therefore very significant in any business. Efficient supply chain management saves on cost and increases profits. Additionally, it improves product quality and reduces time spent on products, which effectively cuts on cost. The current market dynamics are quite challenging for businesses. In fact, market dynamics has seen tremendous growth in competition as well as advancement of technology. This has forced companies to resort to new technological mechanisms of managing supply chain. Supply chain is therefore an integral part of company activities. Definition SCM can be defined as the management of network of events that begin in acquisition of raw materials and ends in delivery of finished goods or services to customers. In essence, it c an refer to the processes involved in acquiring, making and delivering goods or services to customers. Additionally, it can also refer to the management of linked channels that provide goods and services that are required by consumers in the chain of supply. Furthermore, it refers to the supervision, planning, designing, control and execution of activities in supply chain. The main aim of SCM is to promote product or service value, measure performance, link supply to demand, provide global logistics and establish competitive infrastructures (Wailgum, 2008).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Origin and History of SCM Keith Oliver coined the term SCM in 1982. He quoted it in an Interview with Financial times. However, the term did not take hold immediately. In fact, it was mentioned again in the mid 1990s when numerous books and articles were written on it. Since then, it has gained prominence. In the process, prominent people, including operations managers to describe their competencies, have utilised it. During its long period of development, SCM has had numerous definitions, which has been refined in each period. Some of the definitions that were used during its development include management of downstream as well as upstream flow of materials that are value added. Additionally, it referred to the management of information among stakeholders in supply chain as well as management of final products or services. It also involved study of traditional functions of businesses as well as strategies through systematic review in supply chain. These were aimed at promoting lasting performance of both companies and supply chain. Moreover, CSCMP argues that, SCM involves the entire processes to achieve efficiency. SCM also involves collaboration as well as coordination of chain stakeholders such as customers, intermediaries, service providers as well as su ppliers. SCM, therefore, works to integrate all tools of management like supply and demand. However, it should be noted that supply chain is different from supply chain management. While the former refers to a chain of organisations, which are linked at least one downstream or upstream flow of information, product or services, among others from raw materials to the consumer, the latter manages the former. Supply chain also includes use of supply chain software. The software encompasses tool utilised to execute transactions of supply chain. Additionally, the software controls linked business processes as well as manage relationship between suppliers along with other stakeholders (CSCMP, 2013). Major Historical developments in SCM SCM has encountered six main developments. These include SCM 2.0, specialisation phase I, specialisation phase II, integration, creation and globalisation eras. Creation era can be traced to the time of Keith Oliver who coined the term SCM. This happened in 1982. Nonetheless, it should be noted that SCM played an important role way back before the term was coined. This was evidenced when assembly line was created in the 20th century. Creation period was signified through reduction in magnitude and the call for changes in administration practices.Advertising We will write a custom research paper sample on Supply Chain Management specifically for you for only $16.05 $11/page Learn More The second era that followed was the integration era. This era was characterised by technological developments. It brought about the creation of EDI systems in the 1960s as well as the establishment of modern systems like the ERP systems. It was also characterised by cost reduction efforts and value addition. The era continued into the 21st century. It should also be noted that saw growth in internet-based systems (Haag, Cummings, McCubbrey, Pinsonneault Donovan, 2006). The third era that followed was the globalisation era. T his era emphasised on global systems this encompassed relationship between suppliers as well as continental expansion of supply chain. However, this era in supply chain had been done much earlier in other sectors like oil industry. Nonetheless, other businesses intensified its utilisation in the 1990s. This led to integration of global sources in supply chain. It should be noted that this era was characterised by cost reduction, value addition and competitive advantage. The fourth era in this development was the first phase of specialisation era. This face outsourced distribution and manufacturing. Most businesses focused on specialisation in order to achieve competitive advantage. In the process, they dumped vertical integration. They also outsourced functions of noncore operations. In essence, they majored on core operations. In this period, brand owners required recognition in supply chain. For instance, OEMs wanted visibility in supply base. This created distribution networks, w hich increased specialisation. The second phase, which is also known as the second specialisation era, integrated supply chain management as an independent service. This brought about warehouse management, logistics, collaboration and planning, among others. The helped companies to withstand rapid changes are necessitated by demand. This era was characterised by the need to increase competencies. Moreover, it enabled companies to focus on core competencies. This has moved outsourced technology from ASP to SaaS models. The latter is still used in supply chain management. The last category of eras in management of supply chain is the SCM 2.0. This term was coined to integrate new methods of managing supply chain processes. This system has brought with it new collaborative platforms utilised by companies such as TradeCard, among others. Moreover, it allows for increased creativity and collaboration as well as sharing of information among stakeholders. SCM 2.0 delivers results rapidly; it is also flexible and promotes business outsourcing. It also allows for no-touch, mid-touch and high-touch models.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Issues addressed by SCM SCM addresses many issues. For instance, it addresses distribution strategies network configurations. This spans through all stakeholders ranging from suppliers to consumers. Moreover, distribution strategies addresses problems of delivery scheme, transportation mode, control of operations and control of transport, among others. SCM also addresses problems that concerns information, which includes sharing of data that pertains to record, among other areas. Additionally, SCM addresses issues in logistical activities namely, tradeoffs, among others. Moreover, it provides methodologies of controlling cash flow in supply chain. In this regard, funds can be exchanged through controlled networks, which help in aiding payment issues. SCM has the function of managing inventory. This also addresses issues surrounding inventory management. It therefore controls movement of information and materials through the chain. It also gives updated analytical systems utilised to this flow. It is also necessary to note that SCM is bi-directional concerning flow of materials or information. Functions of SCM SCM performs numerous functions or activities. These include management of raw materials once they are acquired, management of manufacturing processes, and management of delivery to the company’s customers. In the process, SCM performs various complex tasks aimed at achieving efficiency and timely delivery of goods or services. Its approach can be termed as cross-functional, since it encompasses numerous processes from the raw materials to delivery. Because organisations try to emphasise in core competencies and to be flexible, SCM works to enable them to achieve flexibility and competence in the fastest and efficient way. Organisations, therefore, outsource various functions to other companies, which are specialised in that area and cost effective. In essence, SCM works to increase the number of firms drawn in to satisfy customer needs. Moreover, SCM works to reduce operational logistics involved in daily running of activities. Due to the collaboration numerous firms to satisfy customer needs, SCM has a function of promoting collaboration and trust among partners. Significance of SCM Because of numerous complexities involved in business management, organisations have placed more focus on instituting credible supply management systems. Furthermore, in order for such companies to compete effectively in an increasingly dynamic global market, they need a reliable SCM system. In essence, SCM play an important role in increasing competencies in businesses. Additionally, specialisation increases quality of products or services delivered to customers. It is also necessary to note that SCM aids in fast delivery of products or services to customers. Besides, it ensures that products made or services provided are adapted to consumer requirements. SCM has played a significant role in increasing velocity of the inventory. It has also mod ernised inventory management, which can now be accessed on a common platform. SCM has been central to collaboration efforts between associated partners. In addition, it has increased trust and dynamism in supply chain. No wonder, it has become the focus of business management. Business process integration Supply chain can be done individually or through integration of activities. However, going by the amount f processes to be monitored, SCM requires change from the former to the latter. For instance, markets make efforts to know consumer needs through communication with retailers and distributors. In essence, integration process must be utilised to achieve company goal. Essentially, it requires teamwork between suppliers and buyers. This ensures that products are tailored to the latter’s need. Moreover, information is shared between them in common systems for an inclusive product development process. To achieve integration, information must flow continuously. Supply chain pro cesses involved in integration include returns management, order fulfilment, customer service, manufacturing flow, product development, product commercialisation, demand management and customer relationship, among others. Other processes that have been suggested in this section include procurement, outsourcing, performance and warehousing management. In essence, these processes must be integrated in a common system to enable business to achieve SCM goals. Customer service process involves exploration of the relationship between customers and the organisation. It ensures that the organisation receive real time information on customer needs. This ensures that customer rapport is maintained and positive feeling is ensured between the two stakeholders. Procurement process also works to ensure smooth delivery of raw materials to the company. Moreover, global companies are also able to source their materials globally whenever required. Product development is another process, which is inte grated in supply chain. It ensures that the company fulfils the needs of customer concerning product development. Other processes include distribution of goods or services to consumers. This process works to link marketing routes to consumers. On the other hand, outsourcing ensures that cost reduction efforts are achieved in manufacturing of goods. Moreover, the company is able to measure performance through performance measurement process. This assists in monitoring of supply chain activities. Besides, business process integration helps companies to manage their warehousing systems from a common platform, which again enhances inventory management. SCM Theories Various theorists such as Lavassani, Hult and Ketchen, among others, have tried to give information on fundamental theories concerning different fields in supply chain. Notably, they have employed organisational theories to achieve this feat. Among the theories proposed, include agency, institutional, strategic choice, system s, customer relationship management, time based competition, and agile manufacturing theories. Still others include just in time, SCM share, PIPS, PIRMS, TOC, MLM, RCM, NP, and ATP theories, among others. However, it is important that these theories are m=not directly linked to supply chain although they give information on processes involved in SCM. For instance, some theories give information on relationship between supplier and buyer, which affects customer relationship management in SCM. It should also be noted that theories such as relational review provides theories on networks and dyads to outline successful firm performance. Therefore, majority of the theories postulated try to define various integrated processes of SCM (SCMR, 2013). Components of SCM As mentioned earlier, SCM has five main components. These are plan, source, make, deliver and return. The first component (plan) is sometimes referred to as a strategic potion because it involves layout of metrics aimed at moni toring supply chain. Additionally, it ensures that supply chain is provides quality products as well as increase value of products to customers. Essentially, it is a strategic plan that manages resources aimed at meeting consumer needs. The next component of SCM is known as source. Companies are tasked with the responsibility of choosing suppliers that bring raw materials. Sourcing component ensures that managers along with their strategic staff set pricing, payment and delivery channels. Moreover, they should develop metrics aimed at improving as well as monitoring relationships. Source component also helps managers to manage inventory of raw materials acquired from suppliers. Thus, sourcing involves tedious activities, which must be integrated in SCM to process successfully. The next component of SCM is make, which involves production or manufacturing. At this stage, raw materials are converted into finished products with consideration for customer needs. The processes involved in this section include manufacturing and testing of the products. Additionally, it includes activities such as packing, among others, which are aimed at preparing the product for delivery to customers. The next component is known as deliver, this component is sometimes known as logistics. It involves the process of arranging and delivering orders made by customers. It also involves integration of networked warehouses as well as carriers, which transport the products to customers. Additionally, this component enables companies to establish modalities of receiving payments such as invoice, among others. The last component of SCM is known as return. This component deals with defective as well as excess goods or services. It is necessary that companies establish flexible and responsive networks for receiving faulty products from customers. However, it should be noted that this component has posed various challenges to companies. The Concept of Centroids in SCM Over the years, Centroids h ave been noted as a significant concept in SCM. This concept targets areas of high density or populations. For instance, in the United States, centroid is positioned in Dayton. This centroid serves about 60percent of Canada’s population as well as another 60percent of the United States’ population. A centroid usually targets populations that represent a country. It covers areas of up to 500 miles. Centroids usually target the busiest parts of the world. Moreover, they target areas that show the heist interchange ration. This is evident in Dayton where the interchange rate is about 1-70, which is only second to the one at California. Additionally, centroids are usually placed near population centres. For instance, Dayton s the population centre for both United States and Canada. It is also estimated that this region sees more than 150000 vehicles per day. Moreover, about 35percent of the vehicles passing each day are trucks, which haul goods. In essence, choosing a cent roid is significant to managers in SCM because it provides real time information on customer needs (SCC, 2013). Tax efficient SCM Supply chain is a global process. Therefore, its management is also executed across the globe. However, it is necessary to note that different countries have varying tax policies. That is, some countries offer lower tax than other countries. Supply chain management should therefore be tailored to achieve lower tax rates than in alternative financial processes. This would help solidify it and improve its benefits to both customers and companies. Tax efficient SCM is recommended, therefore, in SCM models because it serves the purpose of cost reduction. To achieve this, tax effect should be designed and implemented in SCM with close consideration for optimised profits as well as optimised quality of product or service. It should be noted that cross-national trade and globalisation have been fore front in soaring tax rates. However, by considering the benefit s of tax efficiency, companies should work to integrate it in SCM. In essence, tax efficient SCM would be beneficial to companies since it would consolidate their funds as well as minimise cost. Sustainability of SCM Supply chain is normally quantified by use of SECH model of ratings. This model involves use of social, economic and environmental factors of supply chain. It is therefore necessary that supply chain channels be sustained for businesses to keep benefiting from its functions. SECH ratings involve use of four footprints. These are categorised to emphasize on environmental factors, among others. These ratings ensure that companies focus on the four factors in product acquisition, design, manufacturing and delivery. This is increasingly dominant since more than 70percent of carbon footprints come from supply chains. This has forced companies to consider other ways, which can assist minimizing these footprints. In 2010, some companies were asked to conduct audits on carbon f ootprint through third party auditors. This shows the responsibility that has been placed on companies to be sustainable. Sustaining SCM requires complete audit of firms to establish their performance. However, it should be noted that despite efforts made to protect consumers as well as the four footprints of SECC, sustainability of SCM has been quite challenging. Value of SCM Constructions of these schemes are usually done with focus on product value. This ensures that extra revenue is generated on top of the cost of putting up the network. Usually, value is related to the customer who utilises the product. Moreover, he pays for the product with value in mind. That is, value should not be considered on the party of producers only, but also on the part of consumer. However, this has caused various debates on modalities of establishing value-measuring models. Additionally centralisation of tasks such as data sharing and product creation assists in promoting inclusive involvement of p artners. However, it is highly challenging. Therefore, measurement of value should encompass customer feedbacks to create confidence in value systems. Certification in SCM Various associations around the world have worked on significant certification systems, which assists in increasing staff capacity. These include global associations like ISM, APICs, AST L, ISCEA, and IOSCM. Moreover, there are other organisational like CSCP, CPSM, and CSCM, among others. These organisations work to establish common standards and practices of SCM in each of the processes mentioned earlier. These certifications emphasise on different processes. In addition, they combine some processes in their certifications. For instance, ISM certifies staff on CPM (certified purchasing manager). This line deals more with procurement activities than sourcing. Moreover, it also emphasise on inventory management as well as transportation, among others. Notably, these certifications do not leave other processes out entirely. For instance, in CPM, there is some work on warehousing, network design and lot sizing, among others. Consequently, it can be noted that these institutes offer various certifications aimed at developing specific areas of SCM. Therefore, these certifications are essential in maintaining high standards and common platforms for SCM partners. Moreover, they encourage information sharing, which foresters trust among SCM partners. Challenges and Applications of SCM SCM has been applied variously in business environment. However, worldwide supply chain has also come with its limitations and challenges. These challenges usually affect value and quality of products or services. Trends encountered in SCM include globalisation, partnerships with inexpensive providers, soaring offshore sourcing, and soaring expenditures due to globalisation, among others. These challenges also affect mid-sized corporations. Notably, increased focus on shared service centres have also brought about adm inistrative as well as logistical challenges. It is necessary to note that manufactures have gained tremendously from these trends. For instance, they make lowered taxes, enhanced environments as well as big lot sizes. It should also be noted that global application of SCM pose increased challenges since lead-time is long. Additionally, multi currency policies, which surround exchange rates, have also posed challenges to global SCM. In essence, this has also caused inadequate transparency in working profits and costs. Nonetheless, SCM has been a revelation in business management systems. Its application has traversed all global economic powers (Van-Hoek Wagner, 2013). Conclusion SCM refers simply to management of supply chain. Supply chain refers to the processes of acquiring raw material, modifying it (adding value), and delivering it to customers. However, supply chain involves complex networks that range from procurement to delivery of products or services. SCM combines science and art to improve ways in which companies acquire raw materials, make them into goods or services and transport them to customers. SCM management has five main components namely plan (which is usually strategic), source, make, deliver, and return. These components are networked to ensure that SCM achieves efficacy. SCM solves multiple problems for businesses. These include cost reduction through outsourcing, emphasis on core functions through specialisation and development of customer tailored products. It should also be noted that globalisation has brought many challenges to SCM partners. However, this has also come with more cost cutting measures, which increases return. References CSCMP (2013). Education and Networking in the Supply Chain Management Profession. Web. Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A., Donovan, R. (2006). Management Information Systems for the Information Age (3rd Canadian Ed.). Ontario, Canada: McGraw Hill Ryerson. Handfield, R. (2011). Wha t is Supply Chain Management? Web. SCC (2013). The Five Most Common Supply Chain Challenges. Web. SCMR (2013). Supply Chain Management. Web. Van-Hoek, R. Wagner, B. (2013). Supply Chain Management (SCM): Current Education Provision and Practitioner Future Needs. Supply Chain Management: An International Journal, 18(4). Retrieved from Emerald database. Wailgum, T. (2008). Supply Chain Management Definition and Solutions. Web. This research paper on Supply Chain Management was written and submitted by user Krish Ray to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Supply Chain Management Suitability of push and pull management philosophies in relation to the case study and the boundaries between different stages of its supply chainAdvertising We will write a custom assessment sample on Supply Chain Management specifically for you for only $16.05 $11/page Learn More Several approaches are always made for the purposes of ensuring perfect mobilization of resources towards achievement of certain goals. The approaches may vary in details but at the end of it all share common ground of improving businesses like Sandwich Company. Push management could be designed to position resources at suitable places where there is anticipated need. The model results into equipped line of services based on standardized processes which could assist in delivering resources and products to right venues at anticipated times. The technology employed should specify activities that need to be administered together with the resources in order to meet anticipated dem ands. The push models tend to work with people passively, where the decisions affecting consumers could only be solved through central decision making (Hagel and Brown, 2005). Focus on pull management assists in the creation of foundation where people are helped in the processes of appropriate mobilization of right resources. The pull models are created as a result of increasing uncertainty within companies like the Sandwich Company. They help in improving the level of creativity applied by local participants who seeks satisfaction of immediate needs. The pull models help employees within the company to come together with innovative ideas which would help in solving the rising demand of sandwich products, this may include resources such as installation of refrigerators for the sake of perishable products. Pull models seeks no dictate on the nature of tools and resources required to accomplish tasks and address arising opportunities like supplying goods to the supermarket. Pull model s tend to treat consumers as creative entities that could be used to solve problems and create opportunities. It is applied to reinforce capability building by all consumers and employees hence assisting them towards innovation that could help them solve their needs (Hagel and Brown, 2005). With the maturity of supply chain within Sandwich Company, the demand chain is as well gaining importance and requires the organization’s appropriate responses. Sandwich products alongside services that goes with production, needs to be appealing to the consumers as well as the company’s stakeholders.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The pull model could be rightfully applied in this area so as to ensure that both customers and the firm are placed into consideration for viable outcome in production. The firm need not only to focus on the drivers within the demand change but also on their efficient management. This is what leads to the firms’ ultimate value chain (Hagel and Brown, 2005). The efficiency of the supply chain within Sandwich Company cannot be realised until the level of demand for the products is understood. First of all the demand chain objectives requires address in line with the company’s business strategies. This will make it easier for the employees to extensively resume the relevance of the strategies for the purposes of exploring available opportunities. Holistic approach to market opportunity analysis needs to be considered whereby; cost optimization is given priority on the side of customer expectations as well as those of stakeholders. However, the cost does not matter so much within the market since consumers are more concerned about convenience and speed. The marketers should be more involved in the process of product characteristics. The pull approach when adopted provides flexible approach towards the managem ent of the resources being used in the production process since the ingredients used seem to be perishable. This assists in mobilising assets and other resource capabilities like distributions outside the confines of the company. The pull system when applied in this business will ensure effective extension of services beyond production processes (Hagel and Brown, 2005). Sandwich Company needs to pay much attention towards services and satisfaction of consumers on their products; they need to consider issues such as complain from customers and product follow up avenues. These processes help in enhancing the Company’s image amongst consumers because of their high performance level. The Company emphasizes so much on product delivery as one of the important quality drivers. As part of pull model, Sandwich Company needs also to focus on offering good training to its employees which ultimately ensures that they are acquainted with the right knowledge enabling them to handle current consumer issues. Sandwich Company requires market surveys to establish on efficiency of their services to consumers. Monitoring of delivery services should be done through some systems of evaluation such as on-time and same-day deliveries. Sandwich Company uses the final assembly time as the basis of making charges to its customers (Hagel and Brown, 2005).Advertising We will write a custom assessment sample on Supply Chain Management specifically for you for only $16.05 $11/page Learn More Sandwich Company should make crucial improvement on some customer metrics such as transportation of products and timing of delivery services, this is since these metrics contributes tremendously towards customer satisfaction. The improved performance of Sandwich Company could be attributed to positive responses received from potential consumers. The company needs to place lots of emphasis on customer views and comments towards their services. This can be done efficie ntly through conducting of customer surveys that makes it easier to analyze consumer tastes, preferences and expectations (Godsell et al, 2006). Customer perspective means of evaluation is very crucial towards contributing to the Company’s improvement in performance. Customer service aspect of the BSC should be utilized by Sandwich Company through the use of important measures which include; lead times, on-time delivery services, customer index and the level of consumer satisfaction. The Company determines customer satisfaction through surveys that are conducted by random selection of customers on a monthly basis and making them fill few questionnaires. Analysts from outside the Company are used to visit consumers on behalf of the firm and produces report on the consumer reactions and valid expectations they desire from the Company. Customer survey questions are constructed based on basic consumer concerns touching crucial areas such as quality, satisfaction on delivery time and concern on pricing methods used on the Company’s products and services (Godsell et al, 2006). The company focused on the quality, cost, performance and issues on prices at which goods and services are offered to customers. They also focused on the level of supply of goods to consumers at different locations. These companies analyze customers in relation to their potential and pay much attention to the processes through which products and services are administered to the specific customer groups. The company’s effort to evaluate the performance from the customer point of view contributed largely to the performance of the company. The processes through which they developed products are defined by quality measures, cost of production and time which contribute a lot towards customer satisfaction (Godsell et al, 2006). Response management will be required on the process of evaluating range of alternatives. This is done through first of all reviewing the amount of resour ces available and linking them to market outcomes and possible limitations. Apart from the production process, delivery of services is equally an important factor for success to be realised.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Corporate BSC was established so as to help in organizing operations within the Company. This helped in establishing customer perspective as the key contributor towards effective performance and achievement. The company puts much emphasis on the product cycle that involves transportation and kind of services delivered as some of the important metrics used within Sandwich Company. The Company focuses on supplying quality citrus products at affordable prices while still maximizing on its profit. The actions and measures taken by Sandwich Company’s are all customer-centric. The success of the Company is attributed to their market strategies on ways to deal with customers. However, the Company need to diversify its production to include other related fruit products (Godsell et al, 2006). Cycle view of supply chain operations The customer order cycle comprises of customer arrival followed by the entry of Customer’s order then Customer Order fulfillment and finally customer receiving the order. The replenishment cycle which is the category of retail order, comprises retail order trigger followed by retail order entry then fulfilling the order request and finally receiving the products. This is preceded by the manufacturing cycle which comprises the order arrival going through the production scheduling then manufacturing and shipping process then reception of the final products. Before the manufacturing process, there is the procurement cycle which involves making order of materials based on the manufacturer’s production schedule, suppliers’ precisions and also considering the various components of manufacturing before the materials are received by the manufacturer. Metrics Reliability Responsiveness Flexibility Cost Assets Perfect Order Fulfilment z Order fulfilment Cycle time z Upside Supply Chain flexibility z Upside Supply Chain Adaptability z Downside Supply Chain Adaptability z SCM Cost z Cos t of Goods Sold Z Cash-to-Cash Cycle Time z Return on Supply Chain Fixed Assets z Return on Working Capital z The use of business score card could be of prime use in this Company. Score card could be used in this Company as a management tool to motivate employees towards increasing the value of the organization giving it the ability to appeal to shareholders and rewarding of all employees with high performance level. Corporate BSC should be established so as to help in organizing operations within the Company. This could help in establishing customer perspective as the key contributor towards effective performance and achievement. The company should strive to place much emphasis on the product cycle which involves transportation and kind of services delivered as some of the important metrics used (Godsell et al, 2006). The processing time depends not only on the set up time and compatibility of other ingredients but also on the rate of flow of the raw materi als. This therefore calls for implementation of faster means of transport to cater for the need. The sequence of sandwiches at the end of processing unit should be geared towards minimizing total completion time and maximum earliness. Finished products with due dates should not be supplied since this may bring about confusion on the utilization of the available resources. Conclusion In reality the customer perspective actions and measures taken by Sandwich Company are customer-centric since all the strategies were geared towards maximizing profit per potential customer within the market. Sandwich Company ensures that customers receive their products in good shape, quality and at the right time. This could be ensured through the reduction of assembly time that also contributes to lowering of prices. The manufacturing efficiency of Sandwich Company should be improved through the use of BSC which helps in creating crucial changes within the process and human resource management. The ov erall efficiency of the processes should be improved by more than 10%. Apart from focusing on quality expectations from customers, the company should expand their concern to encompass cost of production and the nature of delivering goods. Increased income and improvement in sales are some of the indications of the level of customer satisfaction. This is since customers tend to buy more of a product when satisfied with its quality and prices. References Godsell, J. Harrison, A. Emberson, C. Storey, J. (2006). Customer responsive Supply chain strategy: An unnatural act? International Journal of Logistics, (9). Hagel, J. Brown, J. (2005). From Push to Pull Emerging models for Mobilizing Resources. Working paper, (10), 2-48. This assessment on Supply Chain Management was written and submitted by user M00nKn1ght to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Supply chain management Introduction When we talk of supply chain management, we look at different factors and scenarios which are important in the management of the supply chain. In supply chain management mainly focuses on forecasting in particular collaborative forecasting, which is important in that it helps an organization reduces costs associated with inventory.Advertising We will write a custom essay sample on Supply chain management specifically for you for only $16.05 $11/page Learn More In an organization, we look at inventory control closely and as a result we have to make plans for the control and management of internal and external factors (Chopra, 2009). To ensure that the organization remains at a competitive advantage supply chain management through collaborative forecasting is very important. Effect of data points on confidence intervals In our case, various data points are available that affect the way the inventory ordering is done; the data points enable us to gauge the accuracy of our forecasting. While forecasting it’s important to note errors due to forecasting based on historical data, the less the number of data points the higher the confidence levels and vice-versa (Lambert, 2008). MAD (mean absolute deviation) is a technique used to trace errors in the process of forecasting. In the process of collaborative forecasting, inventory forecasting is done through various means and in our case multi-period inventory system was used. This system depends on fixed order periods, in that order of inventory is done when time for the current inventory expires. In our scenario provided we look at collaborative forecasting using the technique of fixed time period model, this model explains on how inventory should be ordered according to the calculations done using fixed values and assumptions (Chopra, 2009). This model assumes that the demand and cost of a product is uniform and goods ordered will not be returned. The model looks at th e costs involved and as a result the accuracy levels of using this model are very high with minimal errors.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Role of global factors and competition When an organization is forecasting we have to look at factors which influence the forecasting. In our case global factors such as change in currency exchange rates and price of oil, affect the forecasting task. These and other global factors have made the forecasting process difficult, these factors might make the forecast have errors which will lead to costly overheads in organizations. According to Helms (2000), some global factors that are to be considered when forecasting include competitor’s advantage, market demand and economic conditions which have had an influence in the forecasting of how many vehicles will be sold in our case. On the issue of forecasting bearing in mind the competi tive nature of the world markets, we have to analyze demand based on the customer’s expectation and the use of technology in the forecasting process (Lambert, 2008). When make use of technology such as ERP systems we are able to come up with a system which relies on dependant demand, in this case we are able to predict inventory through partnerships with suppliers and customers leading to better forecasting techniques. Another technique used to gain competitive advantage over our competitors is by use of seasonal forecasting and partnerships with all people involved in the supply chain, this external information when fused with internal data enables the company to focus on the customer needs. Challenges faced in previous evaluation Many challenges were faced in the forecasting of inventory and how to handle information for proper forecasting. Challenges faced included assumptions that the demand of goods will remain constant and returned goods may increase inventory leading t o additional costs. According to Lapide (2001), the effect of inventory on increasing cost makes forecasting difficult; another task which makes forecasting difficult is the use of historical information in the process. The use of this information is inaccurate since it does not take into consideration future change or trends.Advertising We will write a custom essay sample on Supply chain management specifically for you for only $16.05 $11/page Learn More In the process of forecasting, challenges are usually based on the methods used for forecasting. In our case challenges such as constant monitoring of inventory, returned goods and changes in current trends have an effect on inventory are considered as common challenges faced in the evaluation process (Seifert, 2003). Some of the challenges like weather, entry errors, and obsolete demand forecasting are that face us in the forecasting process. Lack of enough expertise to enable us to do better forecast ing of seasonal, time horizons and financial planning are some of the challenges we have to undergo. This is due to the fact that the dealership we are about to open is a new office and total coordination of all chains of supply chain will take time. Conclusion The process of supply chain management is very important in today’s organizations. With this in mind, we must take prudent and efficient steps to come up with right measures to control this information. Forecasting taking a center stage in the management of companies’ information; current trends have shown that data mining for effective management of organization help them to plan on the time, quantity and supply of products, leading to saving which contribute to bottom lines (Seifert, 2003). With current changes in the market, organization should harness the benefits of collaborative demand forecasting through partnerships, technology and other techniques. This process will take organizations closer to demand f orecasting techniques leading to better customer service and better management of the supply chain. References Chopra, S., Meindl, P. (2009). Supply chain management: Strategy, planning, and operation. Boston, MA: Prentice Hall. Helms, M., Ettkin, L., Chapman, S. (2000). Supply chain forecasting – Collaborative forecasting supports supply chain management. Business Process Management Journal, 6(5), 392. Lambert, D. (2008). Supply chain management: Processes, partnerships, performance. San Francisco, CA: Supply Chain Management Ins.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Lapide, L. (2001). Developments in Demand Forecasting from Ancients Greeks to Present. The Journal of Business Forecasting Methods Systems, 16(1), PP. 33-41. Seifert, D. (2003). Collaborative planning, forecasting, and replenishment: How to create a supply chain advantage. New York, NY: AMACOM Div American Mgmt Assn. This essay on Supply chain management was written and submitted by user Barbara Berry to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.