Posted: March 13th, 2023

Explain the role of the supply chain in enabling business competitiveness, and recommend a framework for supply chain management.

Business competitiveness is the force that drives an organization to constantly be on the lookout for ways to improve their products and services, remain ahead of their competitors, and ensure customer satisfaction. To be able to achieve this goal, organizations need efficient supply chain management that manages raw materials, inventory levels, production processes, finished goods logistics etc. (Kumar et al., 2017). The role of the supply chain in enabling business competitiveness can be broken down into four components: improved efficiency, cost reduction, enhanced customer service and risk mitigation.

Improved Efficiency: Supply chains are complex systems with a number of activities occurring simultaneously throughout its evolution from procurement to delivery of goods or services. By optimizing every component within each step in the process such as transportation routes and warehouse location selection (Gee & Venkatachalam 2018), companies can reduce lead times significantly resulting in shorter product cycle times and quicker deliverables which ultimately result in improved efficiency across all operations. Furthermore utilizing new technologies such as RFID tags or real-time tracking enabled by GPS technology will enable companies to track each component along its journey between origin and destination ensuring timely deliveries (Schoenherr et al., 2019).

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Cost Reduction: Having a well managed supply chain also allows for cost savings through reduced labor costs due to automation at manufacturing plants; increased supplier collaboration due better visibility into demand trends; optimized routing paths that lower fuel costs; bulk purchasing opportunities leading to discounts; accurate forecasting capabilities resulting in lower overstocking costs or stockouts; streamlined production processes reducing time spent on manual labor tasks; etc.(Kumar et al., 2017). All these factors contribute towards reducing overall procurement costs resulting from waste reduction from an improperly designed supply chain system.

Explain the role of the supply chain in enabling business competitiveness, and recommend a framework for supply chain management.

Enhanced Customer Service: An efficient supply chain management framework enables businesses to meet customer demands quickly while maintaining consistent product quality levels thus improving customer loyalty (Kim & Kim 2013). This includes features like quick turnaround time for orders being placed , effective order tracking providing customers with regular updates regarding current status , flexible payment options allowing customers’ convenience when it comes making payments ; personalization features allowing customers get customized products according their preferences. These features collectively offer superior level of service compared to existing competition thus increasing organizations profitability while improving brand recognition amongst target market segments .

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Risk Mitigation: Organizations must design their supply chains having factored potential risks associated with natural disasters like floods , fires earthquakes etc .(Frazier & Wells 2021) With proper planning prior these occurrences disruptions caused by them can minimized drastically thus preventing significant losses both financial as well as reputational damage associated with them . Effective contingency plans should also be developed so that if any mishaps do occur they can react immediately without having much disruption arising out of it again minimizing losses due unpredictable events.

A framework for successful implementation of a comprehensive SCM system requires managers understand how components interact together while aligning corporate goals with respective departments involved throughout its lifecycle including suppliers , manufacturing sites , warehouses , retail outlets etc . It should include policies such as givebacks / incentives offered by manufacturers based on purchasing volume expectations laid down by retailers ; freight forwarder agreements covering expected timelines required for shipments under different conditions ; policy outlining responsibilities m between retailer – supplier relationship during periods when demands exceed supplies ; return authorization procedures needed once goods have been shipped out etc.

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