Question 1With globalisation taking place the world has become a small place. Today, there is intense competition and people have lot of options. This is making companies to be more aggressive and at the same time see that customer are satisfied. One of the most important thing companies are working is on improving their supply chain. This will ensure timely delivery. Since, there are a lot many options so having this in place is very important. Supply Chain Management is thus a network established between dealers, distributors, retailers, transporters and suppliers to ensure that the goods are readily supplied to the customers thereby improving customer satisfaction (Harrison & Ganeshan, 1995).
Supply chain forms an important aspect of every business and it concentrates on the following three partsSupply: which ensures that the raw materials are readily available and determines the manner by which it is available (Supply Chain, 2011)Manufacturing: which focuses on transforming raw materials to final goods (Supply Chain, 2011)Distribution: which ensures the network of dealer, retailer, wholesaler and stockiest to ensure that the goods finally reaches the customer (Supply Chain, 2011)Supply chain thus focuses on the different aspect of business and helps to develop a network which ensures that the business process ensures efficiency in operations. Supply chain management has undergone tremendous change.
Companies have moved from the traditional method which had inventory piling up to a more innovative supply chain management. The implementation of different tools has improved the demand and supply function. A research shows that organisations supply chain measurement depends upon three factors and they need to devise strategies to remove the bottlenecks present in the system for more timely delivery and better utility function.
(Gray & Khalid, 2006)Despite the growth in the method of supply chain the principal components of supply chain remains the same. The components of supply chain are as followsPlan: is the basic function of supply chain and includes the entire process of supply chain, from management to the metrics to be used to evaluate the performance standard (SCM, 2011)Source: is the suppliers who will provide the required resources to the business so that it is able to process them further (SCM, 2011)Make: is where the resources are converted into finished products and services by using the various other resources available with the business (SCM, 2011)Delivery: is the process of getting the goods delivered to the customer and includes a chain of distributor, retailers, stockiest and other who facilitate the process (SCM, 2011)Return: is the process when the goods are returned by the customer or certain problems are faced by them.
Businesses need to solve those and ensure that the efficiency of the entire process improves (SCM, 2011). Thus supply chain has the above component and to ensure effective implementation of supply chain it is important that all the different components work efficiently.
This goes in with a study which states that to ensure that the different components or parts of supply chain yield maximum efficiency it is important to develop healthy relationship between all the departments (Lummus, Vokurka & Krumwiede, 2008). This thereby highlights that the fact that to ensure efficiency it is important to ensure that the different parts of supply chain functions efficiently.