Running head: SUPPLY CHAIN MANAGEMENT

Supply Chain Management Robert Christopher Argosy University

SUPPLY CHAIN Abstract

The supply chain can be described as a network that is created among different corporations that produce, handle, and/or distribute a specific product. The supply chain is a detailed process companies use to move product or service from suppliers to customers. ( investopedia, 2013) The management of a supply chain is a complicated process; it takes innovation, strategic planning and total cooperation between vendors and suppliers. According to Chopra, Sunil and Meiudis (2004) text book, Supply Chain Management Second Edition, the supply chain comprises of manufacturers, transporters, suppliers, inventory warehouses, retail stores and customers. In each organization, a supply chain comprises the utilities of new product development, , operations, marketing, , finance, and customer service, distribution are involved in receipt and filing of customers order. Proper management of a supply chain works toward a fulfilling a triple bottom line (economical, environmental, and social). This paper is a close analysis of the supply chain and how it works contrary to and in favor of companies. This paper will describe the goal of a supply chain and the difference between a responsive and an efficient supply chain. In regards to issues listed above the paper will ask the question Can the supply chain be both responsive and efficient? This paper will also ask How can an organization optimize supply management to improve result s and remove obstacles? Moreover, it will provide two examples of companies that have optimized their supply chain management. Lastly, the paper will provide recommendations.

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Supply Chain Management The overall goal of a supply chain Chopra, Sunil and Meiudi (2004) state the primary purpose of a companys supply chain is to meet customer needs while simultaneously creating profit. The supply chain function begins with customers ordering a specific product and ends when satisfied customers receiving that particular product. A supply chain system can be visualized as the movement of finished goods or inventory from suppliers to manufactures to distribution hubs to retail stores to customers. A supply chains system is not a one-track process. What Chopra, Sunil and Meiudis (2004) mean by this is a manufacturer may have several suppliers while concurrently supplying several distributers. It quite possible may be more correct to say supply network in describing the architecture of a supply chain. The standard stages in a supply chain are component/raw material suppliers, manufactures, wholesalers/distributers, and retailers. Every stage is not always present in a supply chain; however, the proper design of a supply chain depends on the necessities of customers and parts the stages play involved. Is it a difference between a responsive and an efficient supply chain? Can it both be responsive and an efficient simultaneously? According to Simchi-Levi (2011) describing the traditional relationship between responsive and efficient supply chains No firm can be both efficient and thus compete on price, and at the same time highly responsive, and thus provide its customers with a large set of choices in a speedy manner while maintaining an extraordinary service level. According to Minnich & Maiheim (2013) responsiveness is defined as an aptitude to react with concise precision timing to a customers demand or changes in the chosen industry, to

SUPPLY CHAIN sustain or gain a competitive advantage. Conversely a supply chain is efficient if it focuses on lowering costs and no degenerative use of resources. If a company wants to increase responsiveness it can raise inventory levels, allowing for flexibility in customer demand. Although increasing inventory reduces efficiency because inventory increases and create high inventory costs. High inventory levels signal that variability reduction may be more beneficial than inventory increases. According to Minnich & Maiheim (2013) an efficient supply chain supplier, manufacturer, and retailer manages indirectly through an self-governing ordering process or explicitly though the management of ordering pronouncements of diverse supply chain components to meet a foreseeable demand at low prices. A responsive supply chain requires a flow of information and guidelines from the marketplace to supply chain personnel in order to predict inventory to meet an indeterminate demand. A responsive of a supply chain is costly because of extra inventory needs to be maintained, and investments to reduce lead times need to be made.

Having a simultaneously responsive and efficient supply chain is a goal that is difficult to achieve and involves tradeoffs because increased responsiveness comes at the expense of decreased efficiency. There may be some strategies such as planning and approach that allow a supply chain to achieve both a responsive and efficient supply chain (Minnich & Maiheim, 2013). Responsiveness is associated with functional products that are more commodity-like they satisfy rudimentary needs that have steady, anticipated demand and extensive life cycles (sugar). Dissimilarly efficiency is associated with innovative products that have a short product life cycle, contribute to high margins, mass variability, and volatile demand (electronics). When a company tailors its supply chain method to meet manufacturing needs of a product and consider the aspect

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of volatility are the most successful. Companies should attempt to design supply chains in which the flow of products are according to the requirements of the customer through the life cycle of the product. How does optimization of an organizations supply chain improve results and remove obstacles? Support your answer with two current examples. Bob Engle (2011) states traditional method of doing what you have always done (even if you do it well) is no longer acceptable in supply chain management. He lists some best in class practices that can optimize supply chain management to improve results and remove obstacles. A supply chain government should be established council. A governing council will give direction and h streamline supply chain tactics with a company's total strategy. Members included in the governing council should be the supply chain and organizational leader and top executives, department managers. Regularly planned meetings should be held. If meet cannot be scheduled routinely the mere presence of a council will demonstrate the supply chain managers have senior leadership support. The supply chain organization should be properly align and staffed. Success full companies have embraced a hybrid methodology it uses a centralized strategy to produce unanimity with decentralized execution. Positioning the supply chain leader over procurement, contract management, logistics, and demand planning and forecasting is and emerging strategy. Supply the organization with technology that meets is its needs. Organizations should identify the procedures that need perfecting, and select the technology that superlatively satisfies their development needs.

SUPPLY CHAIN Optimize company inventory management. Supply chains should frequently calculate how much inventory they have on hand and how much they will need to meet a goal and work to sustain an optimal level for their particular supply and demand situations. Control and minimalize threat by establishing and appropriate level of management.

Similar to technology supply chain managers should adopt policies and techniques that follow an appropriate system of strategy. It is imperative that companies review them on a regular basis to keep them current. One of the information technology (IT) industrys most wide-ranging supply chains belongs to Hewlett-Packard. HP has over 1000 production suppliers, thousands of nonproduction suppliers; a supply chain spans six continents, and over more than 45 countries and territories. HP strives to improve social and environmental responsibility (SER) principles in its (IT) supply chain. (8hp.com, 2013)

Boeing provides the aeronautical and weapon systems industry with leading sustainment resolutions. Its innovative solutions deliver progressive performance results. Boeing s experienced and intelligent team of experts has years of experience and confirmed industry best in class practices in advanced technology production.

The quality of logistics/training support at Boeing guarantees the mission is a success. Boeing assures the tools it delivers to aircrews and maintenance crews will safely execute effective missions in support of our soldiers and allies globally. Boeing offers the most complete/affordable results to its customers. Boeings more than 350 trainers for 24 different aircraft platforms incorporate cohesive training solutions. (boeing.com, 2013)

SUPPLY CHAIN Additional Recommendations

For any company to be successful their supply chain must run with an unmatched accuracy to sustain a competitive advantage over its competition. Different rules apply for the production of different products. Companies must also be attentive to inventory situation. The only way to ensure cooperation while reducing confusion throughout the supply chain is to make sure all parties involve have unlimited access to the same correct information.

SUPPLY CHAIN Reference Boeing.com (2013) Retrieved from http://www.boeing.com/advertising/support/_logistics/index.html Engel, B. (2011) 10 best practices you should be doing now CSCMPs Supply Chain Quarterly Quarter 1 Retrieved from http://www.supplychainquarterly.com/topics/Procurement/scq201101bestpractices/ Minnich, D. Maier, F.H. (2013) Retrieved from Supply Chain Responsiveness and Efficiency Complementing or Contradicting Each Other? http://www.systemdynamics.org/conferences/2006/proceed/papers/MINNI308.pdf

Simchi-Levi (2011) Retrieved from Supply Chain News: Understanding the "Operations Rules" Con't) Supply Chain Digest http://www.scdigest.com/ontarget/11-02-161A.php?cid=4212&ctype=content 8.hp.com (2013) Supply chain responsibility hp Retrieved from http://www8.hp.com/us/en/hpinformation/global-citizenship/society/supplychain.html

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