Business Laws and Intellectual Property
Supply chain management as a philosophy, attitude, and approach that uses quantitative and qualitative methods to minimize infrastructure, process and delivery costs while maintaining service levels. Simply put on supply chain management is the flow and delivery of services and goods to the destined location, timely in the exact quantity as ordered and above all at the lowest cost. The importance of supply chain management cannot be disregarded as it is the only faction within an organizational setup that has its wings spread and touching every department within the organization (Bell, Chad and Stanley, 91). There has to exist for proper and symbiotic co-dependencies among all the departments such as sales, manufacturing, finance and accounting, distribution customer and human resource department. This is a clear indication of the principality and importance of the supply chain and its operations.
It is vocal that we get to the specifics of how a properly controlled supply chain is important. A properly illustrated management portfolio always ensures that the customer’s needs are always met and addressed. Issues addressed here include: The customers anticipate that the correct goods collection and quantity are and that goods mix-up or oversight is avoided. This leads to delays and time wastage as the exact goods are being rerouted and availed. The customer’s goods are availed at the exact destination. A disruption in these services diminishes the customer satisfaction example when a fridge stops working and the repairs are not made in time the customer will definitely not be happy. Reduce Operating Costs Proper control, of the supply chain management, ensures that red tape and constant bottlenecks are avoided (Jacques).
This is from the fact that delays are minimized, there is no downtime, lost goods, goods sent to the wrong destination all translating that only the conventional costs are met and additional costs are not coughed from the profit margins realized. Other costs realized including: Decreasing purchasing costs Wholesalers, retailers, and customers rely on the fast delivery of their products and wares to avoid retention of costly stock larger than is economically feasible. A good example is the electronics store that requires instant delivery of 60-inch smart television. The input of efficient supply chain managers is valued greatly as they help control and minimize the supply chain costs (Spaseski). This has a direct input to the organizations upwards spiral of the company’s profits.
A good illustration can be derived from the US consumers who purchase at least 2. 7 billion units of packaged cereals. Hence decreasing the US cereal supply chain costs slightly below one cent per cereal box translating to $13million dollars industry saved. The supply chain masters are tasked with the responsibility of reading and analyzing the market trends, identifying the current needs, the future projections that may be demanded from the organization or the business (Spaseski). This led to businesses supply chain managers having to integrate and learn Demand Management. The following steps are involved in this model. • Strategy and planning; here the managers set the ground rules for the mutual relationship, determine the product and develop future plans. • Demand and supply management; project the customer demand and deliver shipment required.
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