Supply Chain Management 1

Supply Chain Management

Name and Number of Student

Date of Submission
 Supply Chain Management 2

Introduction
Generally, Supply Chain Management (SCM) can be defined as a significant, innovative
and dynamic process of handling as well as managing the whole production flow of goods or
services. Additionally, SCM is also called art of management of offering the right
product/services to the right customer at the right cost and place. Moreover, the key objective of
SCM is to enhance the customer satisfaction level by improving the service level & minimizing
overall supply chain costs effectively and successfully. In the present modern business
environment, it is important for the business organizations to bring innovation, and development
within the existing supply chain strategies, processes and methodologies by executing best and
specific supply chain practices and methodologies. Along with this, it is also important to know
that, SCM is also help a company in offering competitive scope & opportunities by increasing
customer satisfaction and competitiveness. It allows a company to deliver high quality product or
service quickly to the end customer at the reduced cost (Altamony, Al-Salti, Gharaibeh, and
Elyas, 2016). Overall, this research paper would explain and discuss the concepts, roles,
principles, areas, importance and usefulness of supply chain management.
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Table of Contents
Introduction......................................................................................................................................2
Answer: 1.....................................................................................................................................4
Answer 2......................................................................................................................................4
Answer 3......................................................................................................................................5
Answer 4......................................................................................................................................6
Answer 5......................................................................................................................................6
Answer 6......................................................................................................................................7
Answer 7......................................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
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Answer: 1
Introduction
This section of the study would outline the design options available for a distribution
network.
Design Options Available for a Distribution Network
Generally, two major decisions are taken in order to design or develop a distribution
network such as:
Will the product be to the customer location or picked up from a preordained site?
Will product flow through an intermediary (or intermediate location)?
Based on these two decisions, six different distribution network designs can be developed
such as:
1. Manufacturer storage with direct shipping
2. Manufacturer storage with direct shipping and in-transit merge
3. Distributor storage with package carrier delivery
4. Distributor storage with last mile delivery (Christopher, 2016). 
5. Manufacturer / distributor storage with costumer pickup
6. Retail storage with customer pickup

(Fig: Manufacturer Storage with Direct Shipping)

Answer 2
Introduction
This section of the research paper would discuss and evaluate the concepts and key
definitions of logistics management. In addition to this, the major features and types of logistics
management would be explain to attain the associated objectives
Logistics Management
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Logistics management can be defined as a major elements or components of supply chain

management that play key role in satisfying the customer needs, wants and demand through the
planning, control and implementation of the effective movement and storage of related
information, goods and services from origin to destination.
Major Features of Logistics Management
Key features of Logistics management are listed as below:
 Inventory Management & Planning
 Warehousing Management
 Procurement of Goods and Services
 Packaging and Storage
 Transportation (Desai, Desai, and Ojode, 2015).
 Customer service
Types of Logistics Management
The following are the main types of Logistics Management such as:
 Procurement logistics
 Production logistics
 Sales logistics,
 Recovery logistics,
 Recycling logistics
Answer 3
Introduction
This part of the research paper would address the concepts associated with the strategic
fit. Moreover, the study would also outline and explain how a company can attain strategic fit
between supply chain strategy and its competitive strategy. Finally, the issues affecting the
strategic fit would also be addressed.
Strategic-Fit & Achieving Strategic-Fit
Strategic fit can be defined as the degree in which a particular company is matches its
resources as well as capabilities with the specific business opportunities in the external business
environment. Simply, strategic fit means that both supply chain as well as competitive strategies
has same objectives and goals. On the other hand, it is also accessed that, a company can achieve
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strategic fit through effective planning as well as implementing best strategies. For example, by
achieving strategic fit, a company can enhance its ability to establish a balance between
responsiveness and efficiency that fulfills the demands of its target customers (Hugos, 2018). At
the same time, it is also found that, the following listed below are the issues that affect the
strategic fit such as:
 Increasing variety of products
 Decreasing product life cycles
 Increasingly demanding customers (Desai, Desai, and Ojode, 2015).
 Fragmentation of supply chain ownership
 Globalization
 Difficulty executing new strategies
Answer 4
Introduction
This section of research report in conducted to develop a clear understanding in the minds
of readers about the key role of revenue management in the supply chain management.
Additionally, this unit would also identify the situation under which the revenue management has
the highest effect.
Role of Revenue Management in the Supply Chain
Generally, revenue management can be defined as an application of differential pricing
on the basis of time of use, customer segments, and product or capacity availability. On the other
hand, it should also be noted down that, revenue management is an important element in the
supply chain management that play key and fundamental role in increasing the supply chain
profit effectively. It is also play major role in balancing the supply and demand. At the same
time, it is found that, the following listed below are the conditions under which revenue
management has the highest effect such as:
 If value of product varies in different market segment
 If the product is highly perishable
 If product waste occurs (Dametew Ebinger and Beshah 2018).
 If the demand has seasonal and other peaks
 If the product is sold both in bulk and spot market
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Answer 5
Introduction
This section would explain and evaluate the key strategies that could be used by a
company to build trust into a supply chain relationship.
Building Trust into a Supply Chain Relationship
There are a number of specific ways, methods, practices and strategies that could be
utilized by a company in order to build trust into supply chain relationship. For example, a
company should try to find suppliers with similar or common need to build trust. Moreover, the
company should also conduct strategic planning for the future and offer right information to
suppliers. On the other hand, a company should also pay attention on the Reliability,
Competence, openness, benevolence, Loyalty in order to build trust into supply chain
relationship (Mangan, Lalwani, and Lalwani, 2016).
Answer 6
Introduction
In this part of the research report, the role of transportation in supply chain would be
analyzed.
Role of Transportation in Supply Chain
Transportation in the context of supply chain management can be defined as a dynamic
process that considers the movement of components parts, materials, and product from one to
anther right location. In addition to this, it should also be noted down that, transportation is play
key role in the supply chain management. For example, transportation helps a company in
delivering the products or services to the end customer quickly. Moreover, it is also improve the
service quality, overcome operation costs, manage moving load and save energy (Dametew
Ebinger and Beshah 2018).
Answer 7
Introduction
In this section, the key drivers of supply chain performance would be outlines and
described.
Drivers of Supply Chain Performance
The following listed below are the key drivers of supply chain performance such as:
 Facilities
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 Inventory
 Transportation
 Information (Arzu Akyuz, & Erman Erkan, 2010).
 Sourcing
 Pricing
Description about Drivers of Supply Chain Performance
Facilities: In the supply chain management, facilities are where a product is being stored,
accumulated and fabricated. In addition to this, it is important for the organization to pay
attention on the better management about the location, role, flexibility and capacity of these
facilities because these have a direct and positive impact on supply chain performance.
Inventory: It is important for organizations to have more responsible inventory. For instance, it
is important for a company to manage inventory in the supply chain by adopting specific ways
and methods such as: hiring experienced staff, offering proper training to staff, define target
stock levels and order patterns, organize and control transparency of inventories, using simple
inventory procedures, effective Collaboration with others (Alexander, Walker,& Naim, 2014).
Transportation: This is another major driver that suggests that a company should use effective
and fast transportation services in order to deliver the products to the right customer at the right
time. But, fast mode of transportation may affect the profit level of the company.
Information: According to this, all the needed, related and specific information should be
provided by a company to its suppliers about the needs, wants, expectations and taste of
customers. It is because this information can help the supplier in forecasting the customer
demand.
Sourcing: Under this, a company may outsource its several supply chain functions. For instance,
with the help of outsourcing, a company can reduce employment cost, research & development
expenditures, etc (Simpson and Power, 2016).
Pricing: if a transportation company is charge higher prices for quick delivery of products or
services, it may improve the supply chain performance of the company.
Conclusion
On the basis of above discussion and finding, it can be concluded that, SCM is play key
and major role in the total success and growth of a company by providing competitive
advantages in the marketplace. Moreover, SCM is also allows a company to mitigate several
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types of risks or issues connected with obtaining raw material and distributing goods/services to
the end customer. Moreover, it can be summarized that, in the present time, it is important for the
business organizations to execute best SCM systems, methods and strategies in order to reduce
overhead cost, waste and shipping delays in an effective and proper manner.
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References
Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change
management strategy and successful enterprise resource planning (ERP)
implementations: A theoretical perspective. International Journal of Business
Management and Economic Research, 7(4), pp.690-703.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Desai, K.J., Desai, M.S. and Ojode, L., 2015. Supply chain risk management framework: a
fishbone analysis approach. SAM Advanced Management Journal, 80(3), p.34.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Simpson, D. and Power, D., 2016. Aligning Goals and outcomes in sustainable supply chain
management. In Sustainable Value Chain Management (pp. 161-172). Routledge.
Alexander, A., Walker, H., & Naim, M. (2014). Decision theory in sustainable supply chain
management: a literature review. Supply Chain Management: An International
Journal, 19(5/6), 504-522.
Arzu Akyuz, G., & Erman Erkan, T. (2010). Supply chain performance measurement: a literature
review. International Journal of Production Research, 48(17), 5137-5155.
Dametew AWW, Ebinger F, Beshah B (2018) The Roles of Supply Chain Performance
Measurement on Manufacturing Firms. Global J Technol Optim 9: 222.
doi:10.4172/2229-8711.1000222