Discuss about the Role of The Supply Chain Planning.
Supply chain management is defined as the process of interconnection of different organizations that relate with one another through the help of upstream and downstream linkages between the different processes that will help in producing value to the customers in the form of products and services. The proper role of supply chain planning and control has to be analyzed in the competitive business environment. The role of the Supply Chain Planning and control has to b analyzed as this will help in gaining proper competitive advantage as well.
Supply chain management is a holistic approach that helps in managing across the boundaries of the company and in the large companies there can be hundred strands of linked operations that are passing through operation. These are the strands that are commonly referred to as Supply Chain. The main objective of the supply chain management is to satisfy the end customers and each of the operations in the supply chain management has to properly satisfy the customers.
There are different requirements of the supply chain management that includes proper meeting of the requirements of the end customers. There are five operations performance objectives that are as follows:
Firstly, the quality has to be properly maintained when it reaches the customers as this is quality performance function of each and every operation in the chain. The different kinds of error in each and every stage of the supply chain have the ability to multiply the effect on the service that is provided to the end customers (Beske and Seuring 2014). Therefore, it is the responsibility of the suppliers to perform better as this will help in achieving high supply chain management and satisfy the end customers as well. Secondly, the speed is another objective in the supply chain management wherein the customers are required to be served first and meet the requirements of the customer as well (Brindley 2017). Thirdly, the flexibility is essential in the supply chain planning and control as this will help in providing ability to cope up with different disturbances and changes. This is also termed as agility in the supply chain management. The supply chains that are agile in nature are flexible sufficiently as this copes up with changes either in the form of nature of customer demands or according to operation capabilities within the operation (Brandenburg eta l. 2014). Lastly, the cost is essential objective of the supply chain management wherein it includes cost of finding appropriate suppliers, monitoring proper performance of the suppliers and holding inventories as well (Christopher 2017).
A proper planning and control system is required and is essential in nature for different companies that include JIT and MRP systems. In different businesses, there are different requirements of supply chain management that has to be followed as this will help in providing right kind of services to the customers (Monczka et al. 2015). JIT is a pull system that helps in providing good quality products to the customers and this will help in achieving cost effective production as well. JIT is an ideal system for the industry that deals with food and beverages. JIT helps in reducing the waste of the lead time that takes place in warehouses; it helps in increasing the flexibility in the entire process and provides proper quality products to the customers as well (Wisner, Tan and Leong 2014).
Furthermore, there is an appropriate system of structure for the downstream supply chain activities that helps in moving the product to the end customers. In different companies, raw materials need to be properly supplied by extractor in exact amounts to manufacturer. This is the duty of the manufacturers to produce different kind of innovative products and moves to the distributor who are the ones to deliver it to the retailer (Seuring 2013). The supply chain planning and control can be explained with the help of a diagram:
The companies need to appropriately choose the suppliers that should properly involve trading off attributes that are alternative in nature (Ellram and Cooper 2014). The demand management is defined as the proper identification of the orders of the customers as well as making forecasting sales that are accurate in nature. The different companies need to response to the orders of the customers that is efficient and effective in nature. Supply chain management helps in boosting the customer service as the customers expect that the orders should be delivered to them in the right time at the right place. Proper supply chain planning and control helps in decreasing the cost of purchasing as well as the cost of production. Supply Chain Management helps in improving the financial condition of the companies as well (Stadtler 2015). Supply chain management helps in increasing the leverage of profit and decreases the fixed assets as well. SCM helps in improving the standard of life as well as it is the foundation of the economic growth as companies require proper and developed supply chain infrastructure that has vast retailed system. These kind of supply chain management helps in exchanging the goods and services between businesses and consumers at a low cost and this is quick in nature as well.
In today’s world, the climate of the business world is changing drastically and it has become more competitive in nature as well (Ahi and Searcy 2013). The different businesses have to properly develop the core competencies as this will help in distinguishing themselves from other competitors in the market. In order to create a proper competitive advantage, it is essential in nature for the companies to divert the resources and focus on their tasks that can be best performed by them. The supply chain management has allowed the companies in the competitive world to rethink the entire operation as well as restructure it properly as this will help them in focusing on the core competencies as well as outsource the processes that are not included within the competencies of the company.
Supply Chain Management helps the companies in setting up their own competencies in the competitive world and this will not have any impact on the positioning in the market as well. SCM has properly allowed business to acquire both productivity and competitive advantage and there are different strategies that have been applied for reducing the cost as well as improving the services provided to the customers. The advantage that is related to productivity helps in providing lower profile of cost as well as value advantage as this provides proper product offering as well as competitive offerings. With the help of maximizing the added value, more innovation is added to the product as well as the entire process. With proper usage of the supply chain management, it helps in improving the product life cycle and this changes the norms of traditional offerings as well. With the proper implementation of Supply Chain Management Planning and Control, accepted offerings by the industry to the different customers would be variety of different products that are catered to market segments as well as preferences of the customers.
Conclusion
Therefore, it can be inferred that proper planning and control system is essential for different kinds of business organizations as this helps in increasing the competitive advantage and maximize the profitability along with level of inventory. Supply Chain Management is a dynamic system that helps in integration of each process effectively as this helps in fulfilling the objectives of the organization and drives the organization in reaching perfect performance in the future. Furthermore, MRP and JIT are the different systems that can be used by the different companies in order to run the business smoothly without any kind of interruption in the whole system.
Therefore, these are the systems that can control as well as plan different stages in the process of manufacturing and this makes proper adjustments wherein it is required by the companies. The Supply Chain Management Planning and Control helps in reducing the distribution costs, helps in reducing lead time consumptions as well as reach high quality in the production.
References
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of Cleaner Production, 52, pp.329-341.
Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management. Supply Chain Management: an international journal, 19(3), pp.322-331.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), pp.299-312.
Brindley, C. ed., 2017. Supply chain risk. Taylor & Francis.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Ellram, L.M. and Cooper, M.C., 2014. Supply chain management: It’s all about the journey, not the destination. Journal of Supply Chain Management, 50(1), pp.8-20.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A balanced approach. Cengage Learning.
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