Concept of the supply chain management

Supply chain management

The supply chain management is described as a link or connection between manufacturers, distributors, suppliers, and customers. The supply chain does not only involve the movements of materials but also the flow of information from one point to another. The core value of any business is created by supply chain, and the management of the supply chain is responsible for the creation of this value. The supply chain management deals with processes and aspects that are directly involved in production output with an expression of value. It is imperative that supply chain management creates value through decisions made on what, where and how to do (Christopher, 2016). This involves the selection of various stakeholders throughout the chain to assist in the process.

The supply chain involves the flow of goods and delivery of services, storage, and movement of raw materials from manufactures to customers. The supply chain management has enforced customer oriented aspect in their delivery process by making sure that products and services are transformed. For instance, raw materials are converted into finished goods thus making the products more effective. Moreover, the supply chain management also takes part in packaging, repair, and maintenance to improve the product and services. They ensure that the chain is involved in activities that establish value and that every task is conducted in an optimal manner (Christopher, 2016).

It is important to think how the product will be in the absence of the supply chain. The supply chain avails the products and services to customers in a manner the customer would like. For instance, the manufactures release the products in large quantities as part of the supply chain to the customers. The products are then broken down into manageable units which is acceptable to the customers. Therefore, the supply chain takes part in branding the products to attract the customers for their services (Bustinza, Parry & Vendrell-Herrero, 2013).

 One practical application of supply chain management is the distribution of products from one place to another after the production process. It is vivid that most good or products available in a particular region was moved from another place. The movement of goods or products from the production site to a region of need known as the market gap is a role of the supply chain. Therefore, managing of distribution of essential materials and the finished goods in a systematic manner is extremely important for the success of the business. The management of the supply chain has helped and added value as far as business is concerned. Thus, through the supply chain management, the customers can get what they are not able to produce (Jacobs, Chase & Lummus, 2014).

For instance, the global market is a good example of distribution impacted by supply chain management. Every country has both the import and export trade union and operations. The import involves the movement of goods or products from another country either through shipment or other means of transport. On the other hand, the export consists of a country the flows of goods to other countries across the world either by shipment or other means. This forms part of the distribution role of the supply chain management. Moreover, in regards to supply chain management, the distribution role has been achieved with significant improvements such as the use of refrigeration to move perishable goods.

Question; what is the impact of adding value through supply chain management?

References

Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

F. Bustinza, O., C. Parry, G., & Vendrell-Herrero, F. (2013). Supply and demand chain management: The effect of adding services to product offerings. Supply Chain Management: An International Journal, 18(6), 618-629.

Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

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