Free Supply Chain Design And Implementation Essay Sample
Type of paper: Essay
Topic: Supply, Supply Chain, Business, Management, Community, Logistics, Products, Time Management
Supply chain management is the streamlining of business’ supply-side activities in order to maximize the customer value as well as gain a competitive advantage in the market (Ross, 2000). It represents the efforts made by the suppliers in order to develop and implement supply chains that are said to be more efficient and economical.
The first group is the suppliers who supply the raw materials to the manufacturers. They supply raw materials to the companies. The second group is the manufacturers (Poirier, 1999). They get the raw materials from the suppliers and manufactures products which moves to the next group. The next group is the warehouses. They store the manufactured products then the customers acquire the processed products from the warehouses.
The model used by organization to manage forecasting, planning and inventory is called the Collaborative Planning, Forecasting and Replenishment (CPFR) model (Shah, 2009). This model involved a practice that works by combining the intelligence of the multiple trading partners in the planning and fulfillment of the demands by the customers. This model links sales and marketing best practices to the supply chain planning and the execution process.
The costs absorbed by the organization with respect to inventories and logistics are those costs that are directly related to the production of inventories. Examples of these costs includes manufacturing costs and storage costs.
The organization uses various parameters to monitor the supply chain performance. These parameter includes the demand for products by the consumers (Shah, 2009). The demand is used as a parameter to monitor supply chain performance. Furthermore, organizations uses the amount of inventories in the company as well as in the warehouses to monitor the supply chain performance.
Poirier, C. C. (1999). Advanced supply chain management: How to build a sustained competitive advantage. San Francisco, Calif: Berrett-Koehler Publ.
Ross, D. F. (2000). Competing through supply chain management: Creating market-winning strategies through supply chain partnerships. Boston: Kluwer Academic Publ.
Shah, J. (2009). Supply chain management: Text and cases. Upper Saddle River, N.J: Pearson Education.
Stenzel, J. (2010). Lean Accounting: Best Practices for Sustainable Integration. New York, NY: John Wiley & Sons.