Supply Chain Management – Coursework Example
Supply Chain Management (SCM) Supply Chain Management (SCM) Definition Supply chain management relates to interconnected businesses network management with the ultimate goal of providing services and products packages according to customers’ requirements (Cetinkaya et al., 2011). In essence, supply chain management entails all the fundamental process involved in storage and movement of raw materials, inventory work-in-processes, and finished goods from origin to consumption. SCM ensures that consumers get the appropriate quantity of products and services at the right time. Effective SCM focuses on forecasting, planning, assembly of products, purchasing, and storage. In addition, SCM entails distribution and sale of products and services to customers according to their preferences. It is imperative to note that SCM remains integral in the inherent success of a business within the market. An effectively planned system of supply chain management would ensure retention of loyal customers through provision of standard products and services.
Role of SCM in a company’s ability to compete effectively within the market
Involvement of SCM principles in business process is fundamental to attainment of sustainable competitive advantage within the consumer market. SCM has the significant role of ensuring creation and delivery of affordable, convenient, and better products and services to consumers. For an organization to compete efficiently in the market, its SCM system must properly meet market demands through quality research and production of preferred products and services. In addition, the SCM system must commit itself to providing products and services at appropriate periods. Therefore, SCM has the fundamental role of establishing organizations’ logistics, product development, purchasing, and quality management. Moreover, SCM has to meet market pressures through establishment of competitive global procurement and sourcing, supplier relationship management, and inventory control. The inherent dynamism in market trends requires creativity and innovative skills of SCM professionals to enable a company compete effectively within the market.
Cetinkaya, B., Cuthbertson, R., Ewer, G., Klaas-Wissing, T., Piotrowicz, W., & Tyssen, C. (2011). Sustainable Supply Chain Management: Practical Ideas for Moving Towards Best Practice. London: Springer Science & Business Media.