Supply Chain Managment Essay Example | Topics and Well Written Essays - 1000 words - 2

Supply Chain Managment - Essay Example With constant changes in the operational environment, most organizations are aware that performance and competitiveness in their respective markets can only be enhanced through creation of an active supply chain. This paper looks at some of the strategic implications of supply chain distribution in an organization and their influence on productivity and competitiveness of organizations. Various scholars have come up with various definitions to illustrate on what is meant by supply chain. According to Jacoby (2009:17), supply chain is a process through which goods are channelled from the point of production to the point of distribution, aiming at reaching consumers at the right time to gain profit. Processes involved in chains of distribution are so numerous that it requires aggressive business people to implement all of them. Such activities involve managing people, trying to utilize information, which helps in service delivery and utilization of the available resources in order to m aximize output. It is also worth to discuss supply chain management, which goes hand in hand with supply chain. Supply chain management is a term used to describe the network through which goods move from their raw nature through the processes of execution, procuring, processing, and distribution to the final consumers with an aim of creating and increasing net value. The supply chain management can be best understood by considering its classification and by looking at the components that constitute the supply chain. Such components include procurement procedures, the process of acquisition of raw materials, conversion of the raw materials into finished products and lastly logistics. All these have a role to play in ensuring that final consumers get the quality products and services they require at the right time. Considerably, a business should have it in mind that the driving force behind consumer satisfaction should not overwhelm the expenses incurred in production. The cost of p roduction and other legal charges like taxes should decide the cost of goods and services. However, offering quality goods and services should be at the heart of every profit making organization. It is not appropriate for a company to talk about supply chain without generally taking into consideration that it should be their objective to increase sales and in turn maximize profit. Every profit making organization has a role to play in ensuring that the correct supply chain application creates business and customer relations hence improve not only sales but also the required rapport in a business friendly environment. In line with this, it is in order to look at some of the contributions of supply chain to competitive advantages and profitability. According to Blanchard (2010: 12), carefully selected supply chains help in the reduction of cost of production. Companies and businesses can only achieve double-digit growth through effectively cutting on the cost of operating business. Th is can be done through opting for the best and reliable factors of production such as labour. Other subsidiary factors that facilitate production such as transportation costs can be minimized by setting up a business closer to the source of raw materials. This will not only minimize time wastage from the point of manufacturing to the consumers but it will also reduce other problems associated