SUPPLY CHAIN MANAGEMENT AS A VALUE DRIVER 4
SupplyChain Management as a Value Driver
Question1: What do you consider are some of the problems that affect supplychain management success?
Thetransition between the designing of a supply chain and its fullimplementation is faced by various hurdles most of which, ifmanagers lack the knowledge on how to handling them, the supply chainmay be considered a total failure. Failure implies that the companyloses its competitiveness and value for its customers (Bossard.com,2014).
Amongthe problems that impede the implementation of the operational planare the dynamic needs of globalization (Bossard.com, 2014). There areevolving customer needs as the company advances its global strategy.Managers mostly fail by maintaining rigidity instead of adjustingtheir plan to suit the rising demands.
Theother challenge is the failure of managers to adjust their budgetwhile maintaining a reduction of costs in the implementation strategy(Bossard.com, 2014). The costs become overwhelming for them to manageand lead the firm to a declining path. Increased operational costsincrease the financial burden maiming the firm from being able tocompete effectively.
Theproblem of consolidating the supplier base then arises (Bossard.com,2014). Being able to consolidate the supplier base enables thecompany to avoid long time leads and overheads (Bossard.com, 2014).However, managers find it to be a tough task to find suppliers whohave ready solutions and the necessary experience.
Question2: Using at least two current examples, discuss effective supplychain strategies that were used by a company to positively impactorganizational effectiveness and yield desirable results.
TheMilliken & Company was among the first organizations to applysynchronization of its points of sale (Hanks, 2014). This enabled aneffective flow of information by reducing data lags as well as savingcosts. With the efficacy in data transmission, the company was ableto reduce its product conversion cycle from 18 weeks to 9 weeks(Hanks, 2014).
Anotherexample is the infamous “Mattel Toy Recall of 2007 (Farfan, 2012).”Wal-Mart realized that some of the toys they were distributing aroundthe world had toxic paint. Mattel recalled over 20 million toys. Thisway, the company was able to establish a good rapport with itscustomers by ensuring high quality of its products.
Bossard.com(2014). Supply Chain Management: Challenges and Solutions. Retrievedfromhttps://www.bossard.com/en/how-we-add-value/key-challenges-in-supply-chain-management.aspx
Farfan,B. (2012). Walmart’s Sustainability Index and Supply Chain GreenStandards. Retrieved fromhttp://retailindustry.about.com/od/2009usretailanalysis/a/walmart_sustainability_index_labeling_analysis_2.htm
Hanks,G. (2014). Example of a Supply Management System of a Company.Retrieved fromhttp://smallbusiness.chron.com/example-supply-chain-management-system-company-69953.html