Supply Chain Management (SCM)

Productions and Operations Management

(MAN303-M-8243)

Muhammad Humza Zahid (20181-24845)

Sir Fahad Bin Abdullah

Table of Contents
Intro…………………………………………………………………………………………………………………………………………… Pg3

1. What is Supply Chain Management?................................................................................... Pg3

2. How supply chain grew up?................................................................................................. Pg4
3. The Impact of globalization on the supply Chain…………………………………………………………….. Pg5
4. The impact of environmental sustainability and the “green” movement on the supply
chain………………………………………………………………………………………………………………………………. Pg6
5. Pak-China Economic Corridor and Supply Chain Management (SCM)…………………………….. Pg7
References…………………………………………………………………………………………………………………… Pg8-9
1. What is Supply Chain Management

The word chain used in supply chain just speaks to the connections between the
product, warehouse, distribution centre and the stores where the product or
item is sold. Examples of supply chain are Walmart and amazon. Supply chain
management basically means "managing the supply chain" i.e. the controlling
and upgrading/enhancing all the difficult/complex decisions and components
associated with supply chain. For instance from maker and provider to
transporter and from transporter to the buyer(consumer) in the most cost
helpful manner. Supply chain Management (SCM) includes broad assortment of
activities that are required for planning, controlling and executing the
progression of a thing or an item or a product. It varies from getting raw material,
fulfill production as well as going through distribution to the consumer (end
user). This is done in the most possible and cost beneficial manner. SCM
encompasses around a consolidated plan and executes the processes which are
needed to upgrade or enhance the course of materials, particulars and finance. It
also includes planning, beginning stage, production and overseeing stock and
storage as well as logistics. (Pryke, 2009). In layman terms (simple terms) supply
chain management is the management of effective operations and processes
involved with supply chain that boosts up the consumer value and performs
activities involved in the most successful, efficient and effective manner.
(Handfield and Nichols, 2002).
The pictures below explains what SCM is all about (Yener, 2018).
The benefits of supply chain management include (Anderson, 2004):

 coherence in production processes

 profits
 reduction in costs
 enhances team efforts
 better management
 better inventory management
  effectively deal with demands of customer
efficient communication

2. How Supply Chain grew up

Keith Oliver initially composed the term supply chain management in 1982 (Russell, 2007).
SCM held importance even in the past despite the fact that it was not yet coined. Supply
chain grew up as organizations gained importance. International trade at the time of
colonization was upgrading transportation and enabling trade by sea to facilitate
transportation issues and satisfy the need for cost effectiveness. The Industrial revolution
prompted improvement of machinery that enabled manufacturing of products in mass
quantities in limited amount time ( Koh, Orzes and Jia, 2019). This encouraged for the need
for handling with and improving all stock. Supply chain stepped up as an art in 1913 during
the manufacture of the first automobile (car) during the time of assembly line of Henry
Ford. So manufacturing spread across nations which would mean obviously mean that firms
were quick to discover practical measures to reduce down on expenses. Globalization
empowered nations to trade among one another. The communication gap was fulfilled and
trade laws were sufficient enough to increase trade. In 1990's the specialization was very
high and so the firms focused on core competencies. Globalization prompted more rivalry
among firms as supply chains had expanded on a an international scale. Globalization in
addition to specialization complexed supply chain since it needed to deal with unassociated
distant suppliers and manufactures as well as transporters and retailers. The intricacy of
supply chains today is managed with advance folklores embraced by firms which make
communication simpler and furthermore provide effective tools to improving/optimize
supply chains. In the 21st century today the internet framework has paved a way for unrest
of supply chain by cutting down costs with the assistance of integration. (Smartsheet, n.d).

3. The Impact of globalization on the supply chain

Globalization has affected on all the organizations around the globe by giving
opportunities just as risks associated with positive advancements. Globalization has
made it simpler for countries to trade past their national boundaries. Products and
services are exchanged as well as labor, suppliers, transporters and retailers and so on
are traded among countries. It has increased competition and furthermore got in more
customers. Nowadays companies are quite keen about the cost effective methods in
order to make profit in market. Globalization has allowed integration hence supply chain
became complex and also a fundamental component in production. Supply chain
became complex because of easier communication through the internet, friendly trade
laws and computerized system; all this enabled globalization to impact the supply chain.
Increase in the number of suppliers and manufactures as well as retailers, plants,
industrial arrangements and transporters have made it difficult to deal with the
 operations of productions. (Impact of globalization on supply chain management, 2014).
Having more options implies more variation yet in addition a disarray/confusion is made
with respect to which one is the best since all are promising to give high quality products
and services. The market that is prevailing today has an unstable supply as well as
demand which is making it hard to forecast/predict. Presumably globalization has
definitely created opportunities for cost effective measures in the industrial sector yet it
has additionally expanded worldwide rivalry which makes it hard for supply chains to
work immaculately. Companies are adopting such practices that are progressing for
conquering the complexitiy of supply chain which has creeped because of globalization.
(Cruz, 2013).

4. The impact of environmental sustainability and the “green”

movement on the supply chain

Environment sustainability is currently venturing into organizations. Organizations are

guaranteeing that they embrace to such measures that are more environmental friendly.
The green movement is advantageous for supply chains as firms can now ensure they apply
the green strategy in their processes thus they can gain an edge easily. Both environmental
sustainibilty and green movement have a comparative plan and that is to ensure that
production measures cause least harm to the environment. People are becoming very much
aware about ensuring a safe environment through social media and internet. Organizations
are getting keen about utilizing raw materials that are environmentally friendly and can be
reused without any problem. The idea behind this is to reduce costs and furthermore save
the environment. This concept is known as the green sustainable supply chain management
GSCM. (Kushwaha, 2010). Sustainable supply chain isn't concerned for the environment; it
simply wants to decrease the cost that is incurred. Take for example disposing of carbon
toxic gases which includes a huge amount and facing fines which are heavy penalties for
harming the environment. Before, organizations used to adopt techniques that would work
at reducing costs however now they have come to the realization that supporting the
environment not only is an important thing to do but it also aids reducing expense that the
busniness incurs. Businesses have reported that previously their suppliers were major
contributors of discharging poisonous gases but now the suppliers have embraced to new
and innovative ways due to prominence of Environment sustainability. The effect of
environmental sustainability is perfectly clear, that is majority business have revealed that
their expenses have been reduced just because they embraced sustainable supply practices.
The green supply chain movement has set off a chain reaction for organizations to improve
and upgrade the production measures to get high quality products that are obtained
through least harm to environment (Eltayeb, Zailani, and Ramayah, 2011). A green supply
chain can be obtained through

 Minimize carbon emissions influence during manufacturing.

 Enhanced and fine planning, processes and transportation should be adopted.
 Use of packaging materials should be minimum.
 Refine the auditing tools to raise the standard.
 Raised level of loading should be shared by different suppliers and manufacturers.

5. Pak – China Economic Corridor and Supply Chain

Management (SCM)

CPEC is viewed as a light of hope and redemption in Pakistan to turn it into an indispensable
shipment center point. CPEC will make another degree of improvement in Pakistan and also
increase the growing businesses and raise the economic stability of the nation.
Development in Pakistan especially in the transportation and rail is expected to increase
with advancement of CPEC. All things considered, CPEC will alter and improve foundation
and infrastructure of Pakistan. With CPEC's completion Pakistan will be grow financially and
economically (Kousar, Rehman, Zafar, Ali, and Nasir 2018). This advancement related with
CPEC will affect the SCM of Pakistan. In any economic prosperity in the event that one of the
sector is to improve or create it will steadily impact other different sectors. For instance you
can say that on the off chance that there is high demand for a product or service, at that
point there is need for different or alternative products in the same sector thus
manufacturing just as shipping will increase. It is certain that CPEC will create an all around
well developed infrastructure and that will take permit businesses to be set up as
transportation will be easier and the flow of trade of goods over the regions/provinces in
Pakistan will greatly increase. The SCM will be affected on the grounds that sea and road
routes play a crucial role in setting cost of shipping likewise time of transition. This implies
that because of CPEC the shipping time will be reduced thus the cost caused by SCM will
decrease. The raw materials that are imported by China or vice versa by Pakistan will have
lower prices that will decrease the cost incurred in productions. This will lessen prices of raw
materials and furthermore reduce delivery time which implies that CPEC will permit both
China and Pakistan to be quite competitive in the international market over the globe
(Aqeel, 2016). Both logistics and supply chain will positively be impacted from CPEC because
it will create more opportunities and advantages. (Alam, Li, X & Baig, 2019).

References
For question 1:
1. Pryke, S. (Ed.). (2009). Construction supply chain management: concepts and case
studies (Vol. 3). John Wiley & Sons.
2. Handfield, R. B., & Nichols, E. L. (2002). Supply chain redesign: Transforming supply
chains into integrated value systems. Ft Press.

3. Yener, E. (2018). Benefits of block chain in the supply chain. Retrieved from
https://medium.com/@emreye30/benefits-of-blockchain-in-the-supply-chain-
fce1186eeb71
 4. Anderson, D. M. (2004). Build-to-Order & Mass Customization: the ultimate supply
chain management and lean manufacturing strategy for low-cost on-demand
production without forecasts or inventory. CIM press.

For question 2:
1. Russell, S. H. (2007). Supply chain management: more than integrated logistics. Air
Force Journal of Logistics, 31(2), 56-64.

2. Smartsheet. (n.d). Supply Chain Management 101: Principles, Examples, and

Template retrieved from https://www.smartsheet.com/supply-chain-management

3. Koh, L., Orzes, G., & Jia, F. J. (2019). The fourth industrial revolution (Industry 4.0):
technologies disruption on operations and supply chain management. International
Journal of Operations & Production Management.

For question 3:
1. Impact of globalization on supply chain management. (2014). Retrieved from
http://cmuscm.blogspot.com/2014/02/impact-of-globalization-on-supply-chain.html

2. Cruz, J. M. (2013). Modeling the relationship of globalized supply chains and

corporate social responsibility. Journal of Cleaner Production, 56, 73-85.

For question 4:
1. Kushwaha, G. S. (2010). Sustainable development through strategic green supply
chain management. International Journal of Engineering and Management
Science, 1(1), 7-11.

2. Eltayeb, T. K., Zailani, S., & Ramayah, T. (2011). Green supply chain initiatives among
certified companies in Malaysia and environmental sustainability: Investigating the
outcomes. Resources, conservation and recycling, 55(5), 495-506.

3. Blanchard, D. (2009). 'Green' Supply Chain Movement. Retrieved from:

https://www.industryweek.com/the-economy/environment/article/21947944/green-
supply-chain-movement

For question 5:
1. Kousar, S., Rehman, A., Zafar, M., Ali, K., & Nasir, N. (2018). China-Pakistan Economic
Corridor: a gateway to sustainable economic development. International Journal of
Social Economics.

2. Aqeel, M. (2016). Impact of China Pakistan Economic Corridor (CPEC).

3. Alam, K. M., Li, X., & Baig, S. (2019). Impact of transport cost and travel time on trade
under China-Pakistan Economic Corridor (CPEC). Journal of Advanced
Transportation, 2019.