1. Material and information flow in the business from purchase through the production operations and out to the end-user through distribution delivery services illustrate supply chain services. Most often, firms engaging in the supply chain activities gain strategic benefits attached to the management of the flow of goods, (Zailani, Jeyaraman, Vengadasan, & Premkumar, 2012). In light of the globalization of market operations, companies are aggressively employing supply chain channels as a mechanism to build market competitive advantage, (Barney 2013). The supply chain channels involve all value addition activities that include product development, production processes, product/service specialization.
Market globalization has increased the size of the market the company can possibly serve. In order to defend the global market share from aggressive market competitors, firms have resorted to streamlining supply chain activities that have a direct influence on getting a market competitive advantage, (Seman, Zakuan, Jusoh, Arif, & Saman, 2012). These factors include innovations, available resources, operations flexibility and company output. In combination with management functions such as; supply value chain management, comprehensive network sourcing, value stream management, and supply channel management have increased the potential of the firm to secure its competitiveness in the market, (Chin, Tat, & Sulaiman, 2015). This paper will clarify the supply chain management activities that need to be adopted by FVA in order to secure its market competitiveness by employing provisions of supply chain management control theory.
The strategic benefits that can be realized by downstream and upstream integration of activities that are related to the supply chain include the following activities; efficient inventory management, focus on the competitiveness of the firm, information sharing, collaboration and strong partnerships with product suppliers and improved customer services. However, proper implementation of supply chain practices in an organization is pegged with a lot of challenges, therefore, calling for maximum commitment from the top management. market and product complexities have necessitated high levels of outsourcing in order to create alliances that will ensure intense competition in the market. Competitive advantage can be realized by considering the supply chain network wholly instead of a local optimization process.
FVA can integrate supply chain activities in its line of operations in two major ways; the first way is integrating and coordinating the forward flow of products between them and its suppliers across the globe. Most of these integration activities are classified under the just in time market mantra. Other supply chain practitioners have elaborated on the need for integrating product delivery during distribution processes. Supply chain commitment is another way the integration of product supply can be achieved in the market. Commitment in this context can be defined in terms of the willingness of product suppliers and buyers to put efforts on behalf of the beneficial relationship created.
Justification of costs used in supply chain activities is challenging for most organizations. However, most firms have found it difficult to point out supply costs associated with quality levels of supply activities from suppliers, (Beske 2013). In order to produce a quality product, which is one of the ways to create a competitive advantage, a firm needs to address supply chain functions. In line with its supply chain strategy adopted in the early 1990s, FVA is focusing in reducing the number of its supply and transferring its production unit to a developing hence acquiring a plant in Ghana, this made the company to optimally monitor its costs involved in supply, massive expansion undertaking will make it difficult for the company to effectively monitor the costs involved in carrying out supply chain activities while serving its expansive market. Monitoring and planning for supply chain activities cost is one of the major roles of supply chain management in enabling a firm to realize market competitive advantage, (Beske 2012).
Rapid technological advancement and increase in the intensive market competition pressure have become motivational factors to companies to emphasize on developing partnerships with various suppliers as a mechanism of spreading the risks involved in product supply activity with the aid of increasing quality of business processes by effectively developing combined supply skills and share common organizational procedures, (Mitra & Datta, 2014). In order to remain competitive in the market, FVA needs to focus on establishing positive partnerships with various firms across the market with whom they will share supply-related risks. Most companies are increasing their competitiveness in the market by focusing and performing activities they are highly competent in and leaving other marginal tasks to their selected group of partners.
A lot of firms are embracing the concept of ensuring product quality as a way to remain competitive in the market in the long run. They have developed a reputation for providing high-quality products as a representative of the future product market share while targeting new customers while maintaining its current customer base, (Lin 2013). FVA has maintained its production registry of producing inventory that is needed for stocking and thereafter focusing on producing products according to the order and descriptions of the customer, this is one of the quality-oriented activities that will help it gain market competitiveness in the new markets and maintaining its current market.
The above-discussed factors provide justification for the role of supply chain management in ensuring the firm’s market competitiveness. Supply chain management provides managers with important techniques necessary for a comprehensive evaluation of the role supply chain plays in ensuring competitiveness, (Sukati, Hamid, Baharun, & Yusoff, 2012). From the above discussion, it is clear that the relationship between market competitiveness and supply chain management directly impacts the competitiveness of the firm.
Effective employment of supply chain management has shown its potential value in ensuring competitiveness in the market by FVA, other companies that successfully use it. This is made possible by its ability to improve the overall performance levels in the firm. For this measure, it was important for the firm to clearly understand supply chain management processes and procedures in order to secure their market competitiveness.
Q2
In the modern globalized business operations business, firms are driven to proactively examine their supply chain management activities performance so as to point out the areas that need improvement in order to give the company a competitive advantage in the market. Over the past few decades, firms have improved the efficiency of their supply chain activities by employing various operations management tools such as Kanban, total quality management and just in time management tools, (Qrunfleh & Tarafdar, 2014). While these firms have their supply chain processes, there is a need for a tool that will effectively measure its performance on availing the product to the final customer.
Supply chain management performance measurement is gradually developing into a decision-making problem due to the volume of factors affecting the decision-making process. the appropriate metric used in evaluating the performance is critical to supply chain success and the overall competitiveness of the company in the modern area of market globalization. Performance evaluation of the supply chain revolves around operations in the firm, people, finances and customer satisfaction.
Business financial performance has received a lot of attention in measuring the overall performance of a supply chain management system that is employed. Every business has the primary purpose of making a profit. This makes it essential for supply chain management to that is used to ensure that profit is realized in the firm. The inability of the firm to get profit from its business activities will endanger its market existence, (Azevedo, Carvalho, & Machado, 2011). In order to measure the overall performance of the employed supply chain management system based on the financial aspect, it is crucial to make sure that firms the management tool is sustainable with the concerned firm realizing positive financial benefits from its process of engaging in sustainable supply chain activities. Most of the evaluation activities have emphasized the cost minimization and maximization of the service level of a supply chain management tool as the predominant variables for monitoring and measuring supply chain management in relation to the financial benefits of the firm. FVA is in growth mode, they are in the lookout to find out the best suitable supply chain too that will support their retail operations. Supplying products to all their retail shops across the globe will require a lot of costs to be incurred. This cost affects the overall profitability of the firm. An effective and efficient supply chain management tool will ensure that the value of capital used in supplying the products is realized overtime without the financial position of the firm being negatively affected. Some of the financial indicators that illustrate the financial performance of supply chain management include supply chain profits, supply costs, cost reduction processes, supply chain revenue, and supply service level costs.
Objectively, financial performance of supply chain can be assessed in the following two ways; goods transportation cost and the total inventory handling costs.
People in the organization play a critical part in ensuring the successful integration of supply chain management. they bridge the barriers that undermine successful employment of supply chain management. however, organizational actual human resource practices in areas such as employee hiring, training, capacity empowering, employee motivation and rewarding do not reflect support to the role they play in the supply chain. Most managers hold the fact that the human resource department leveraging is not particular among the main objectives of any firm, (Estampe, Lamouri, Paris, & Brahim-Djelloul, 2013). However, success in the supply chain activities in an organization highly depends on the people that are involved in implementing and carrying out the supply process. FVA needs to fully integrate the human function into supply chain management. in situations where supply chain personnel are empowered to carry out supply chain activities, take necessary risks and solve problems encountered.
Supply chain performance can be associated with the way individuals exchange information within and without the boundaries of the chain. This information contains important knowledge that increases supply chain competitiveness in the market, (Olugu, Wong, & Shaharoun, 2011). With limited information sharing practices within the employed chain, the formed supply alliances will not produce the needed synergy that is needed to compete against other supply channels employed by other firms. To have the required synergy, FVA must ensure employee leverage so as to allow the proper flow of information that will enable the transformation of supply activities.
Supply chain performance in relation to human function in an organization can be assessed in relation to number of scientific and technical employees in the organization and also through labor levels in the organization.
Supply chain performance is among the tools that can ensure customer satisfaction levels and increase the overall profitability of the business. This is one of the business functions that reach the firm’s customer, can be used in managing product retail prices and improving the overall service delivery to the customer. This translates that creates value both to the business and the customers. In the market today, all customers look forward to receiving quality products and great services, (Prajogo & Olhager, 2012). Business receives money from customers in order to satisfy their product requirements in time. In the modern business environment, where customers can aggressively attack the company in a public domain which will greatly affect the public reputation of the business. In order to properly assess the performance of its supply chain management is through monitoring the orders placed by the customers.
Supply chain performance can be assessed in relation to customer satisfaction by assessing order to delivery deal time, and the supply chain lead time.
Operations refer to the processes in an organization that can be quantified. It includes factors such as cycle time, organization productivity, production reliability, timely delivery, inventory management, and scrap reduction and the overall cost of quality. Supply chain measurement can be related to processes that can be quantified. In order to remain competitive in the market, firms have pursued effective and expansionary supply chain strategies that will improve their operations in the market. Supply chain logistics operation of moving production inputs and outputs through various levels in the supply channel. FVA should embrace proper operations practices while implementing supply chain practices so as to make sure that products reach their retail shops across the world.
Firm operations can be assessed by monitoring manufacturing adherence plan and the overall operational forecast errors.
References
Azevedo, S. G., Carvalho, H., & Machado, V. C. (2011). The influence of green practices on supply chain performance: a case study approach. Transportation research part E: logistics and transportation review, 47(6), 850-871.
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of supply chain management, 48(2), 3-6.
Beske, P., & Seuring, S. (2014). Putting sustainability into supply chain management. Supply Chain Management: an international journal, 19(3), 322-331.
Beske, P. (2012). Dynamic capabilities and sustainable supply chain management. International Journal of Physical Distribution & Logistics Management, 42(4), 372-387.
Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green supply chain management, environmental collaboration and sustainability performance. Procedia Cirp, 26, 695-699.
Estampe, D., Lamouri, S., Paris, J. L., & Brahim-Djelloul, S. (2013). A framework for analysing supply chain performance evaluation models. International Journal of Production Economics, 142(2), 247-258.
Lin, R. J. (2013). Using fuzzy DEMATEL to evaluate the green supply chain management practices. Journal of Cleaner Production, 40, 32-39.
Mitra, S., & Datta, P. P. (2014). Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms. International Journal of Production Research, 52(7), 2085-2107.
Olugu, E. U., Wong, K. Y., & Shaharoun, A. M. (2011). Development of key performance measures for the automobile green supply chain. Resources, conservation and recycling, 55(6), 567-579.
Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, 135(1), 514-522.
Qrunfleh, S., & Tarafdar, M. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International Journal of Production Economics, 147, 340-350.
Seman, N. A. A., Zakuan, N., Jusoh, A., Arif, M. S. M., & Saman, M. Z. M. (2012). Green supply chain management: a review and research direction. International Journal of Managing Value and Supply Chains, 3(1), 1-18.
Sukati, I., Hamid, A. B., Baharun, R., & Yusoff, R. M. (2012). The study of supply chain management strategy and practices on supply chain performance. Procedia-Social and Behavioral Sciences, 40, 225-233.
Zailani, S., Jeyaraman, K., Vengadasan, G., & Premkumar, R. (2012). Sustainable supply chain management (SSCM) in Malaysia: A survey. International Journal of Production Economics, 140(1), 330-340.
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