Supply Chain Management

Posted: November 27th, 2013


Supply Chain Management






Supply Chain Management

Supply chain encompasses all the business activities that fulfill the customer’s demands. These activities are linked with the movement of goods from raw material stage to the end user products. Supply chain management involves the product coordination, inventory, location, transportation, retailing and distribution of products to customers in order to satisfy the needs of customers. Each supply chain in a company has its own unique set of marketing demands and operating challenges. Nowadays, many companies use the modern supply chain concepts especially when there is increased demand in the market, competition and expansion of diverse products. They incorporate the modern supply chain concepts with the additional logistic concepts in delivering products to the market.

The technique used in guiding the process design in the company whereby a closed racecar pit crew takes 17 seconds in tuning the engine is the use of technology technique. Use of technology in the production process is beneficial because it makes work easier and saves time. Falkman (2011) points out that the use of technology facilitates the changeover process through diverse methods, which minimize labor and maximize utilization of machinery thus saving time and money. A number of benefit result from a better rapid changeover system. First, it reduces time in installing parts to a new container and changeovers can be done even by a less skilled employee. Secondly, it saves time since the work is accomplished faster and it is less costly.

Additionally, if the same company takes 3 days in accomplishing the same work at a local garage or auto dealer, then it means that the use of traditional concept of logistics principle was used in this auto dealer. Traditional logistic concept is when the activities occur within the peripheries of a single organization. However, taking three days in accomplishing the same work that can be done within 17 seconds is costly and wastes a lot time. Thus, companies in any supply chain should make decisions collectively regarding their actions on inventory especially the kind of inventory that need to be stocked at each stage of the supply chain process.

When the larger passenger jets preload luggage into large aluminum containers in the plane, it takes less time to accomplish the work than when the smaller planes get loaded with one bag at a time. Many companies employ different supply chain principles at each stage of production, transportation and inventory process. For instance, the airline can benefit more when they can employ an effective method of operation especially when they use inventory methods in the management process. Managers need to plan well and employ appropriate decisions that can be used when dealing with transportation of products. For instance, the use of Airfreight delivery of luggage can be fast and more reliable but it can be quite expensive when compared to other inventories such as shipping, which is more uncertain. However, the uncertainty should be compensated through stocking higher inventory levels.

Nevertheless, the operation management techniques employed in the Airline Company are cost effective. The use of inventory techniques employed in the process of supply chain is beneficial because it makes work easier and reduces time spent in pre-loading one luggage at a time. Hence, the use of larger passenger jets in pre-loading luggage into the aluminum containers makes the work easier and it is more convenience. Nielsen (2008) argues that integration of logistics within the production, transportation and distribution chain should be aligned in a sequence. This is because the whole supply chain concept needs to be more lean and supple so that they can provide sufficient service level for the increasing demand. The ratio between lean and agile should be balanced and this are explained in the Pareto principle, which requires that the demands as well as the supply chain concept need to focus on efficiency and economies of scale.

The operation management technique that may be used in the manufacturing fashion company is the use of the inventory techniques in the production process. In order to avoid outdated inventory with manufacturing of fashion goods, products undergo different product life cycle phases. This is essential because products that undergo processes of life cycle are beneficial since they enhance customer value and they are cost effective (Dornyei and Otto, 2000). In addition, the conceptual frameworks are employed and they align with the manufacturing fashion goods together with the process design and are in respect to the life cycle of the product. Thus, they enable the company to gain benefits through leveraging diverse stages of product life cycle. There are other application concepts such as the use of inventory machines that explore the operational supply chain and designing on new colored sweaters for women in the manufacturing fashion industry. Inventory machines are used in making work easier and work faster in producing more products within a short period.

In addition, the efficient supply chain concept is employed in the manufacturing of fashion products. Goods flow from upstream to downstream starting with products development flow, service, information and then fund flow. The company incorporates the traditional logistic concepts in order to produce high quality products within the management system. When the manufacturing fashion goods did not add color to sweaters, the management introduced real orders of virtual integration. The virtual integration within the supply chain in an industry requires industry real time automation or inter-organization processes of business that span trading partners. Nowadays, organizations that are involved in the supply chain use communication techniques such as e-mails, faxes or utilize Internet sources in passing information across to customers. This is vital because it has benefited the manufacturing fashion companies in the supply chain process.

Many companies such as large insurance companies have already demonstrated their ability in managing the supply chain through employing operation management principles that are effective in making work easier and faster. For instance, a large insurance company that used to take three days in handling home casualty claims is now able to make work easier because of its involvement in internal supply chain. This is beneficial because it helps the company to accomplish their work faster thus reducing costs that are incurred in the process of delivering services. Supply chain involves four stages that include the supply network, the internal supply chain, and this covers production, distribution and end users. In between the four stages is the material flow, service flow as well as funds flow. Thus, an insurance company can use e-procurement links and e-distribution links since they are cost effective thus enabling them to meet their customers’ needs.

Moreover, the insurance company will benefit more especially when they can take thirty minutes in handling home casualty claims and sending an RV down to hurricane sites because they can incur less costs or expenses in the information distribution process. Accessing information timely and accurately requires managers to make better decisions and coordinate well in the organization (Raturi and Evans, 2005). This is vital because it will enable the insurance company to provide their customers with better services, which will be delivered in time. With better information, people are able to make effective decisions on what need to be produced and where to locate inventory as well as the best way to distribute services. This will be beneficial to both the company and the people since they will be able to process claims within thirty minutes once they have experienced any problems such as the hurricane, fire incidents or flood issues.



Dornyei, Z. & Otto, I (2000). Motivation in action: A process model of L2 motivation. Working

 Papers in Applied Linguistics, 4, 43-69

Falkman, A. M. (2011). Improving the Speed of Machinery Changeovers, Consequently

Decreasing Downtime, Raises Productivity and Profits. Retrieved from

Nielsen, A. (September 6, 2008). SMED Setup Reduction. Retrieved from

Raturi, A. S., & Evans, J. R. (2005). Principles of operations management. Mason, Ohio:




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