March 20, 2018

Supply chain management essay sample

Supply chain management can dramatically optimize your production or push the prices up where they do not belong. The supply chain is broader than just delivery or shipping of raw materials. It includes logistics, distributions, inventories, sales, e.g. all the cycle products go through from transportation of raw materials to the delivery of a final product to the customer. Often there are multiple organizations involved in a supply chain, therefore, revising a supply chain may be a critical step. On the other hand, it can give a tangible competitive advantage through lowering prices on goods.

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A perfect supply chain model is highly efficient and economic. However, in reality, companies use common supply chains that existed before or make superficial supply choices without researching the field. Typically, one company cannot control all the supply chain because they are really complicated. Therefore, CEOs rely on the chains that have formed already. In such case, managers can analyze single parts of the entire chain and search for the places that take too much time or money.

The supply chain is not only about shipping or logistics. In fact, it concerns every stage of the product development, up to its delivery to the consumer. Supply chain managers analyze data, deal with inventory, place orders, plan manufacturing resources, and count costs necessary for production and shipment. Therefore, the supply chain is not goods or other companies. It consists of people working for their CEOs; people who particularly decide how much the final product will cost, which materials it requires, and how soon it will come.

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