Supply Chain Management

• Introduction
• In the 21st century, the expectancy of the turbulent market conditions have marked some heights, strategizing to develop in all scope of business spectrum in the entirety of trading (Sánchez and Pérez, 2005). In the political environment, connected with, the economic environment, there had been some form of discontinuities and unattended economic decisions surrounding the subject matter.
• Getting right to the issue, many of the decisions embarked and advised were from pressure mounted on globalization, the prices of products and customer controls. The result of the current economic headway, most firms revolving the world, there were some confrontation in the perfect storm of operating in the industry. In the foreign market for instance, there were some form of recession, the rate at which business were occurring were so rapid, making it technically difficult for the implementation of the meltdown for the approaching days (Njoroge, 2009).
• Descending, firms in the industry stood on giving close attention to the demands of their customers, so they can maintain, attract new customers and to gain competitive advantage in the industry in which they operate. Supply Chain Management (SCM); over the few periods have gain purpose, therefore channeling its purpose on information, material and cash flows from the vendors to customers. The reverse is also true (Christopher and Towill, 2001).
• The failure for the supply chain obtained at the market place at the end of the exchange by customers. However, many constraints piled up on the course. For instance, getting the right product at the right time to the consumer was very critical (but not the only constraints) among the lots, making the state of getting the customers satisfied were daunting (Christopher and Towill, 2001).
• The focal issue stems from the appropriate strategy endeavored in the supply chain, which is always credible and worthy to learn. Questions carried from the form of the lean chain been better than the agile supply chain. Below are some forms of conditions emanated;
• The consistency with life’s stages of the commodity which outweighs the whole supply chain
• The consistency with the type of organizations’s product.
• The extent of compatibility with the dynamisms of the products
• The continuous changes in turbulent and competitive environment of the chains.
• This tend to give way for the provision for complete definition of the types of supply chain which at the end paves way for the products type.
• Supply Chain Performance
• The concepts of the supply chain stem from the act of satisfying the customer’s request. It could directly indirectly or directly for all the parties involved. It does not only include the manufactures and the suppliers, but includes the retailers, transporters, warehouses, and customers inclusion. In the specs of the firm, the manufacturer, the supply chain includes all the functions installed to get the process done. Nonetheless, they are not stagnated to new product development, market development et cetera.
• Marking grounds, a supply chain is not static; it involves the flow of information, funds between the different stages of operation. The basic concepts of the existence of the concepts is not necessarily to satisfy customers, but to also generate profits on its own. The chain begins with a client ordering and at the end, paying for the services rendered by the firm. The chain commences when the order is made and ends the clients pay for the service rendered.
• The term conjures a form of images of products, extending from a source to the other source (manufacture, to the distributors, to the retailers and finally settling on the final consumer). It is noteworthy to note the vital information, the flow of products and funds available along both directions for the concept. The term also gives the perception that, one player involving in each other’s dealing. For instance, a manufacturer may receive materials from diverse supplies for them to distribute to several retailers. Beneath is a critical supply chain;
• Customers
• Retailers
• Wholesalers/Distributors
• Manufacturers
• Component/Raw material suppliers
• Get to know that, every aspect of this work is urgently needed to be submitted to the supply chain (Chopra and Meindl, 2004). The concept (supply chain) is defined as a form of chain linkages linking each element from the customer’s perspective viewpoint. Ideally, the SCM should be assessed before, for its performance. This is for firms (with this idea) to effectively and efficiently managed in order to meet the demands (Gunasekaran et al., 2001). Getting to the baseline of the specs of the topic, Lee and Billington (1995), tell us, supply chain is stemmed from a network of supportive interventions which was procured per the materials, converted into semi-finished or/and finished goods. The final product is delivered to the sale-outlets. The management of the following networks need the full optimization of logistics, focal time and a specified quantity of goods at a given interval and the price tag.
• Ideally, what seems to be a spur in dealing with clients and suppliers is the lasting relationship that is created in the supply chain management. For this to be successful of fail the test of time stem from the market delve into, getting the right product, at the right time and at the convenient price is not the only benchmark used in gaining competitive advantage. Key factors like satisfying the customer, understanding the dynamism of the market in which one operates is very critical.
• For the sector to see an improvement in the performance level of the supply chain management, it is advisable for the sector players to note the driving forces of demand and supply, so at to manipulate costs simultaneously with the upgraded spectrums of customers being filled with their desires (Mason-Jones et al., 2000). A portion of Gansler et al. (2004), submitting a defense, indicated that, the management control of all the materials, the related information and fund gained from the purchasing of raw materials to be transported into semi or finished product.
• Management philosophy defined by Hugo et al. (2004) SCM as and I quote, “the management philosophy aimed at integrating a network of upstream linkages (sources of supply). The internal linkages inside the organization and downstream linkages (distribution and ultimate customer) in performing specific processes and activities that will ultimately create and optimize value for the customer in the form of products and services which are specifically aimed at satisfying customer demands”. The scope tends to involve the inflows and outflows of goods and services with information, critical, within the specs of producers, manufacturers and the customers as well (Samaranayake, 2005). Descending, it could be seen that, the main objective of SCM is to stir the value of supply chain, to be able to generate the distinct differences between the worth of the final products and the cost incurred in the supply chain (Marcus, 2010).
• The entirety of SCM is to gain competitive advantage, to scoop more market prices and shares (Chopra and Meindl, 2007). The value of customer creation is created through the intensive collaboration and joints, which at the end tends to speed up efficiency, i.e. cost maximization, or market effectiveness, where benefits are added to the products, which stem of giving value to the customers. The extent of value is not automatic, it has to be worked for, also perceived by customers (Handfield et al., 2009).
• Lean Supply Chain (LSC)
• This model was developed by Toyota after a Toyota delegation a paid a courtesy visit to Ford’s car factories in the US. The outcome revealed was based on being unable to serve meagre market with a full circulation of the specs of cars involved with high-tech, the bulk production. The basis of this started to unveil the full techniques, which spear of allowing them to flexibly find their feet in the terms of the batches and sizes (Vonderembse et al., 2006).
• Here, there is some form of employment especially in the continuous improvement efforts, focusing on clearing off waste products in the chain. The efforts is accepted in the internal specs of the supply chain, paving way for economic production of the smaller quantities and also enhancing specialization and productivity, improving upon the profitability and also, the manufacturing of products to suit customers’ demands and responses (Both, 1996).
• There is an increasing form of LSC approach and the revolving item, multiplies the level of competition which in the volume of it, combines the ability to satisfy the multiple market segments. The demands of customers tend to continuously lie on the side of the product cycle, in the short-term growth rate. Hence, the lean supply management chain, responding to time (Vonderembse et al., 2006).
• Agile Supply Chain (ASC)
• This is the ability in the revolutionary exchanging of business spheres (environment) into a turbulent aspect of competition existing in the market. The concept here tell the change in the business environment, to respond the calling more appropriately (Sharifi and Zhang, 1999). The paradigm in this spec relates to the interface turning between firms and their target markets, the external perspective on the flexibility entirety. The ASC focuses solely on protruding issues carving from unpredictable perspectives, capitalizing on the scope of purposes via a fast responding note. It deploys updated techs, techniques to cab unpredictable and difficult issues.
• Leagile Supply Chain: Beyond lean and agile?
• Here, the scope tends to depend on the considerably two of the bi- critical elements, satisfying customers and able to understand the demands of the market environment. Take for instance, the manufacturing sector, where there is development of diverse strategies to meet the required of both the customer and supply chain (Chan et al., 2009). The scope of lean focuses on eliminating the seven types of waste that tend to stir the population, the waiting time, time consumed on reporting to a duty (Richards, 1996). Conversely, the agile strategy tends to penetrate the market through ‘market knowledge and virtual cooperation’ to utilize the merits enjoyed in a volatile market place.
• What this means is that, both strategies have proven to be useful in their line-specific. Nonetheless, the current situation demands more robust technology hence the birthing of this strategy. This form of strategy (Leagile) joins both the lean and agile concepts via a decoupling note separating the production line into two folds at the focal points of differentiation (Naylor et al., 1999).
• Strategic Relation between Supply Chain and Product Life Cycle
• Here, the concepts tend to reduce lead-time, to increase productivity and efficiency. Expanding the scope of manufacturing, causing a stir of flexibility so to cut cost. LSC model attempts to build some form of schedule across the supply chain, using the production to respond to the demand of customers. Whereas, the scope is thrived on achieving this goal, the LSC tend to focus on the incremental enhancement in the scope of the production (Kaizen). At the end, product life cycle of standards gives rom to stable design in the period, operating at a low cost; products are recognized to even a global standard. More profit can be achieved through cost minimization, and checking the level of employment in the entire supply chain in the stages of the product life cycle (Mason- Jones et al., 2000).
• Addition, there is an efficiency and flexibility when product is maximizes, and hence increases expansion, paving way for quality control and to also keep customers in shape and satisfaction. To extension of the model is designed to give support to the lean supply chain via all stages of the product life cycle. Innovative measures and chances are also created to succeed, meet the requirement of customers and to also stand in shape of achieving great stuff in the organization. The stern of transition into third stages of its life cycle, maturity. Here the innovative product commenced to get the features of the product standards.
• What this means is the highest performance of the internal controls and the state of satisfying customers, to get the attention of customers. the product should be well designed assisted by agile supply chain especially in the introduction state as well as the growth stage and also the lean supply chains in the extension(maturity) and decline state of the product life cycle (Choi and Hong, 2002).
• This confirms the partnerships of strategic decisions, which could also be true in the form of reverse products. This normally is obtained at the end of the product life cycle, thus, the hybrid product for instance demands the input of Leagile Supply Chain in the scope of the product life cycle, hence, the highest form of internal performance and the rate of customer satisfaction. This end of it should be to the model.
• Conclusion
• In the supply chain of this model, Lean and agile mechanism tend to be the focus of the study in the manufacturing firms. The purpose is to promote performance. The two mechanisms have their diverse advantage, giving support to each other when partnered. They both, at a certain point of connection maximizes efficiency in specific situation. That is to say that, considering the lots of characteristics of effective and potent organization, their processes and systems. It becomes very possible to tap into the promising benefits, they distinctively lay.
• Akin, there are some barriers, which arouses in the course of using the model. When one lacks a proper understanding of the dimensions of the supply chain, it becomes very difficult to tap into the advantages leveraged in this processes. The result will be an underutilization and lack of efficiency and effectiveness.
• Concluding, the writer realized that, the standard of products in their entire life span demand the lean supply chain whereas the standard commodity in the maiden delivery of this work demands the agile supply chain from the introduction and growth state.
• Moreover, in the maturity and decline stage, the lean supply chain is demanded.