Supply Chain Management As A Value Driver

Assignment 1 Instructions: Discussion—Supply Chain Management as a Value Driver

A successful supply chain strategy includes good design and implementation. However, supply chain strategy is not considered truly successful until there is a measurable contribution to the bottom line. To be successful, managers must plan, forecast, and execute the operational plan as well as face and overcome the organizational, partner-based, and personnel-based factors that can diminish value. Effective supply chain management continues to grow in importance as a competitive differentiator for most companies. However, most companies fail to realize a competitive advantage or value for the customer.

Using the module readings, Argosy University online library resources, and the Internet, research supply chain management. As you examine the readings in this module, consider how change affects all stakeholders in the supply chain and apply those reflections to the following questions:

• What do you consider are some of the problems that affect supply chain management success?
• Using at least two current examples, discuss effective supply chain strategies that were used by a company to positively impact organizational effectiveness and yield desirable results.

Write your initial response in approximately 300–500 words. Apply APA standards to citation of sources.

SAMPLE ANSWER

Supply chain management is faced by several challenges. These challenges can however be solved or better still be prevented. Some of the challenges faced include;

• Lack of supply chain strategy. Very few companies have a supply chain strategy which are documented. This is because most companies are focused on cutting the costs
• Too much product complexity. Many organizations fail to eliminate underperforming products so as to remain with only few products that add value to the organization (Simchi-Levi, & Kaminsky, 1999)
• Supply and demand not matching effectively.  This majorly comes as a result of functional silos that exist within a corporation.
• Company’s overreliance on the past performances to help in the prediction of future sales. Peoples needs evolve every day as well as market dynamics change every day. Considering these factors, one has to be careful on prediction of future sales (Simchi-Levi, & Kaminsky, 1999).
• Lack of preparedness to potential risks. Most companies plan their programs without planning for any potential risks. This can lead to failure of the business in case any unfortunate event happens or may lead to diminishing of the profits (Tan, 2001).

There are several supply chain strategies that can impact positively an organization’s effectiveness and help the company or organization to yield desirable results. The following two strategies can be used effectively to aid in improving an organization’s operation:

• Incorporation of sustainability into the supply chain.

Companies striving to achieve environmental and social sustainability have a greater chance to succeed in the market. This is because it sustainability improves the production efficiency and also improves the supplier management skills.  The social sustainability also aids in attracting many employees to work in the organization. The business can also monitor its momentum through incorporation of audit, benchmarks and also best practices. This automatically improves the supply chain (Tan, 2001).

• Building a supply chain that is adaptive to rapid planning and also integrated execution.

The executives in an organization need to be able to predict the risks associated with the business as well as the demand. This will help a great deal in helping them adapt their supply chains to the changing market demands and events. This will enable the organization to manage and at times eliminate the any shocks that might occur within the supply networks (Wisner,2003)

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