Professional Documents
Culture Documents
Internal supply chain control is a managerial tool to assist management of a firm to run its daily
activities effectively. However, there are challenges which actually weaken its effectiveness.
Deliberate on the measures which could counter the weaknesses/limitations of internal supply
chain control in an organization.
Introduction to Internal Supply Chain Control
The concept of “supply chain” is well established in the literature and is generally referred to as
the alignment of firms that bring products or services to market (Tang, 2006) The supply chain
includes manufacturer, suppliers, transporters, warehouses, wholesalers, retailers, other
intermediaries and even customers themselves. The field of Internal Supply Chain Control was
born to manage the flow of information, products and service across a network of customers,
enterprises and supply chain partners. (Russel and Taylor, 2009) and since its introduction as a
concept in the 1980s, supply chain control has undergone significant changes and extensions.
Challenges Facing Internal Supply Control
As organizations strive to enhance internal supply chain efficiencies and gain greater control of
related costs, the biggest obstacles standing in their way include a lack of visibility into all steps
in the supply chain, poor synchronization of end-to-end business processes, and little or no
access to accurate, time-sensitive information. Just one of these three barriers let alone all of
them combined can prohibit shippers from achieving their long-term supply chain goals; having
a significant financial impact along with wasting precious resources. (Tang, 2006)
Other Challenges
Cost containment
Internal supply chains control can’t keep pace with cost volatility. Internal Supply chain
executives rank cost containment as their number one responsibility to the business far ahead of
enterprise growth and product/service innovation. This intense focus on controlling costs is also
quite evident in their activities and programs; two out of the top three types of initiatives are
aimed at improving efficiency.(Deveshwar and Rathee 2010)
Risk
Executives agree on importance of risk management, but mounting internal supply chain risk
even more than increasing customer demands and higher costs has leaders on edge. (Deveshwar
and Rathee 2010)
Customer intimacy
Companies interact with suppliers more than customers. Rising customer demands ranks as the
third highest internal supply chain control challenge, and two out of every three companies
struggle to accurately identify customer needs. (Deveshwar and Rathee, 2010)