Verified Document

Isues Associated With Supply Chain Management Essay

¶ … Supply Chain Management At a basic level efficient supply chain management (SCM) will make sure the right products are in the right place at the right time (Stadtler, 2014). However, efficiency does more than just this, it helps to achieve these goals in an optimal manner. SCM can utilize forecasting approaches to optimize production and logistics schedules to create cost efficiencies. This may be achieved through an examination of different processes in order to reduce waste, either eliminating processes and do not add value, or identifying areas of wasted resources which will save costs (Roberts, 2015). In addition, where there are effective advance planning, there is also increased potential for flexibility in the supply chain, which may allow for a greater level of tolerance for shifting demand levels (Stadtler, 2014).

Supply chain management may also be utilized to increase efficiency, with forward planning allowing for more production, and better flow of goods between points of the supply chain (Christopher, 2011). Increased efficiency may also lead to a higher potential level of output, and when these different characteristics, or associated with efficient supply chain management are realized, the result is likely to be increased profits (Roberts, 2015).

Question 2

Vertical and horizontal integration provide different advantages, and support different strategies (Mintzberg, Ahlstrand, & Lampel, 2008). The organization undertaking vertical integration seeks to manage the various stages of the supply chain, both upstream and downstream (Kimmons, 2015). Within this strategy and organization has a strategy to control the supply...

This strategy is effective at reducing exposure to the power leveraged by supply chain partners, as well as controlling or constraining costs associated with the upstream chain (Mintzberg et al., 2008). Vertical integration has been seen within the automotive industry (The Economist, 2009).
Horizontal integration is seen when organization diversifies through operations which are at the same stage of the supply chain. A good example is seen with fast food restaurant companies, such as Yum! Brands, who own KFC, Pizza Hut, and Taco Bell (Yum! Brands, 2015). Horizontal integration supports a strategy helping minimize competition from other firms, providing the firm with the ability to capture different sectors of the market, as well as spread risk across a number of different brands (Kimmons, 2015). Therefore, vertical integration is seen when the greatest threat is from members of the supply chain, whereas horizontal integration is utilized where the greatest threat is from competition.

Question 3

Effective SCM recognizes, and where possible mitigates the potential impact of uncertainties on the supply chain functioning (Christopher, 2011). For a supply chain canned peaches, the major sources of uncertainty may be seen in both the upstream and the downstream elements. In the upstream there is the uncertainty regarding the availability and price of the inputs (Slack, Chambers, & Johnston, 2010). Peaches are a seasonal product, and production may vary depending upon many factors, including the weather, which…

Sources used in this document:
References

Christopher, M. (2011). Logistics and supply chain management. Harlow: Financial Times / Prentice Hall.

Kimmons, R, (2015), what are the differences between vertical & horizontal in strategic management, The Chron, retrieved 13 December 2013 from http://smallbusiness.chron.com/differences-between-vertical-horizontal-strategic-management-24460.html

Lahiri, N, Narayanan, S, (2013), Vertical Integration, Innovation, and Alliance Portfolio Size: Implications for Firm Performance, Strategic Management Journal, 34 (9), 1042-1064

Mintzberg, H., Ahlstrand, B., & Lampel, J. B. (2008). Strategy Safari: The Complete Guide Through the Wilds of Strategic Management,. Harlow: Financial Times / Prentice Hall.
Roberts, S, (2015), the advantages of supply chain management for small companies, The Chron, retrieved 13 December 2013 from http://smallbusiness.chron.com/advantages-supply-chain-management-small-companies-20595.html
The Economist, (2009), Moving on up, retrieved 13 December 2015 from http://www.economist.com/node/13173671
Yum! Brands, (2015), Our Brands, retrieved 30 December 2013 from http://www.yum.com/brands/
Cite this Document:
Copy Bibliography Citation

Related Documents

Supply Chain Management
Words: 2095 Length: 6 Document Type: Term Paper

Supply Chain Management Founded in 1903, Ford Motor Company now manufactures or distributes automobiles across six continents. Ford employs about 164,000 people in about 70 plants worldwide. The company's automotive brands include Ford and Lincoln. According to Ford's corporate website, in 2010 Ford earned $6.6 billion, their highest net income in more than 10 years. In 2010 Ford launched 24 new or redesigned vehicles in key markets around the world. Ford expects

Supply Chain Management
Words: 642 Length: 2 Document Type: Book Report

Supply Chain There are a lot of benefits of supply chain management, to the point where it is absurd to ask what they are. What benefits are there of not engaging in supply chain management? None. So the reverse is also true. Supply chain management, among other things, ensures that you get the products/materials you need on time, on cost and to spec. While this obviously enhances the firm's value, it

Supply Chain Management in the
Words: 1554 Length: 4 Document Type: Discussion Chapter

G. Reza Nasiri, Hamid Davoudpour, & Behrooz Karimi. (2010). The impact of integrated analysis on supply chain management: a coordinated approach for inventory control policy. Supply Chain Management, 15(4), 277-289. Link: http://www.emeraldinsight.com/journals.htm?articleid=1865246&show=pdf The concept of the demand-driven supply network (DDSN) and its implications on inventory control and management are discussed in this analysis, along with examples being shown of how these objectives can be achieved despite uncertainty in key markets. This analysis

Supply Chain Management
Words: 670 Length: 2 Document Type: Essay

Managing Supply Chain Managing the supply chain The organization that I work for deals in interior finish of houses with the range of services being the floor finishes, plumbing works and sanitary ware, home furniture and office furniture as well as curtains. The outsourcing levels within this organization run to close to 70-75% of the goods and services. In as much as there are some materials that are manufactured by the company,

Supply Chain Management Systems Have
Words: 4633 Length: 16 Document Type: Literature Review

(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when

Supply Chain Management in Fmcg Sector Fast
Words: 4046 Length: 10 Document Type: Term Paper

Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now