Fundamentals of Supply Chain Management

This assignment delves into the core principles of Supply Chain Management (SCM), highlighting its significance for businesses across various sectors. It discusses how SCM enables companies to efficiently deliver products and services to customers within stipulated timeframes, ultimately leading to increased profitability and market share. The assignment further examines fundamental aspects of SCM such as raw material procurement, total quality management, customer service, and demand forecasting, emphasizing their role in a successful supply chain.

Supply Chain Management
Fundamentals
(Part A)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Supply chain management demonstrates those exercises which are connected to supply
chain; therefore, an organisation will accomplish requirements of clients and in addition will
obtain competitive benefits from rivals at marketplace (Gattorna, 2017). This is considered as
management of items' flow; this will comprise movement of crude material, stock and products
from producers to customers. This project is based on Wesfarmers which is a retail store and
establish in Australia. By managing supply chain system, they will be able to fulfil demands and
needs of individuals within limited period of time. This assists them to maintain brand image in
market as well.
TASK
According to Hugos (2018), supply chain management is considered as an integrative
method which will include entire stages that help to complete desires of consumers. This is
termed as business process which through which supplier will offer items and services to
individuals that add some value for clients. It will help to take benefits from contenders at
marketplace. Henceforth, it has been understood that, this procedure will help an association to
obtain growth as well as success. In addition to this, they will be able to satisfy purchasers in an
effective manner. In context of Wesfarmers, they are using supply chain management; therefore,
they will be able accomplish needs and wants of customers by providing items to them as per
their requirements. They are offering goods across the nation to individuals timely, this assists
them to maintain their customer base in an effective manner.
Each client want qualitative products from firm as per their desires, it was stated by
Brindley (2017). Therefore, it is required for company maintain proper stock so that they will
render merchandise within specific time limit. This is essential for affiliation to provide after sale
services to customers which aid in maximum satisfaction. In this manner, they will enhance their
revenues and market share in an effective and efficient manner.
As indicated by Genovese and et. al. (2017), supply chain management is a significant
aspect of logistics administration. It is considered as an important procedure which is associated
with strategically managing storage and in addition procurement of material. Fundamental aim
of SCM is to reduce unwanted cost of items and in addition services. For this, superior of
company needs to manage overall delivering procedure of goods to clients. As a result,
Wesfarmers will easily take benefits from contenders at marketplace. Thus, it get concluded that
1

firm will improve their profits with support of supply chain management and along with take
competitive benefits effectively.
As stated by Ayers and Odegaard (2017), supply chain is termed as a methodology which
needs some creative thoughts or ideas; therefore, procedure of supply chain will access
significantly. Six sigma technique is connected with SCM so entire work will get completed in a
systematic way. This has been determined that supply chain process aids to increase employment
opportunities for individuals. With assistance of this, inventories will be managed by employer
in an appropriate manner. Along with, organically will be able to fulfil entire corporate social
responsibilities effectively and efficiently.
According to Gattorna (2017), there are many elements which need to be considered by
manager at the time of development of supply chain management. This will comprise judgement
regarding location and transportation, stock control, product design, distribution strategy and
many others. Type of product will cater affect to overall SCM, as this will be either for
perishable or non perishable as well. It is fundamental to formulate an effective strategy to
maintain an appropriate relation amongst suppliers as well as warehouse superiors, this signifies
by Dubey and et. al. (2017).
This has been analysed that, SCM is much beneficial for Wesfarmers because it assists
them in improvisation of revenues as well as market share. This supports to reduce effects of cost
from business procedure either in a direct or indirect manner. As stated by Werner (2017),
supply chain management assists to increase communication; as a result proper coordination and
cooperation will be maintained between vendors, suppliers and in addition organisation. To
enhance profits of firm, it is essential for them to use new or latest methods and techniques into
business. Along with, they need to maintain proper interaction with distinctive areas.
Additionally, products and services will be provide to customers as per their demands and
requirements.
According to Zhao and et. al. (2017), an effective supply chain management will help to
increase goodwill of an enterprise in an appropriate manner. This will easily improve
bondholder's value and association will render them efficient rate of return. It has been analysed
that SCM will provide maximum discount to wholesaler as they give order to affiliation in high
amount. This will assist to promote global trade in a significant manner.
2

An effective supply chain management requires proper planning; therefore, entire things
will get done in a systematic manner. To implement this process on firm, high amount of fund is
required. It get examined that rivals of organisation will copy SCM procedure easily. Many times
it get difficult for affiliation to manage things in a significant way. Sometimes, due to lack of
communication this will not done in a systematic manner. This process with cater impact to in
house staff members either in a direct or indirect manner. As stated by Reefke and Sundaram
(2017), supply chain management is not appropriate for the perishable products. Along with,
items get affected due to changes in weather. This will take high cost if stock is delivered via sea
transportation because maintenance charges will be high. It is not easy for manager of
Wesfarmers to select appropriate supplier. There is less flexibility in the schedule of time and not
effective for remote areas as well. In addition to this, it is not economical for short distances
(Disadvantages of SCM, 2018).
According to Hugos (2018), if company is having an effective relationship with suppliers
then this will aid them to take benefits from contenders for maximum period of time. Enterprise
will loose some new opportunities which are available in market because they are basically
focusing on recent clients only. Foremost challenge is coordination as well as communication
while selection of supply chain management.
SCM will be classified into two major types, one is inbound and another is outbound. It
was signified by Brindley (2017), Inbound logistic means when products and services are
coming into business, whereas, when it goes out of the business, then it is termed as outbound.
To enhance reliability of procedures of firm and in addition reduce transportation and storage
cost, company will combine both of them.
As stated by Genovese and et. al. (2017), basically fundamental of supply chain
management will be described into four parts. Primarily, it is required to set some targets or
objectives which need to be accomplished by company; therefore, they will be able to provide
maximum level of satisfaction to clients. It is essential to measure cost and investment related to
SCM. To fulfil needs and wants of consumers, it is required to know about their demands as
well. After that, it is must for superior of firm to deliver items and services to purchasers timely
for consideration of money. It will help them to take benefits from clients at competitive world.
This has been analysed that basically business will defined through five foremost functions, it
3

will consists buy, make, store, move and sell. This is called as internal supply chain management
of Wesfarmers.
Third fundamental of SCM is known as managing the flows. It is required to set some
targets or goals; thus, it can be achieved with maximum effectiveness and appropriateness.
Information of material, finance etc. will basically flow amongst distinctive associations. This is
much difficult for an enterprise to manage this kind of stream in a systematic manner. For this, it
is essential to maintain an adequate communication between associations.
Lastly, supply chain relationships is essential and this will be amongst intrinsic and
extrinsic suppliers or clients. With aid of this attribute, it will be developed or managed in a
significant manner. There is requirement of win – win game approach; therefore, goals will be
achieved through mutual benefits and in addition trust (Four fundamentals of SCM, 2018).
Therefore, it has been comprehended that supply chain management is required to adopt of
company so that will be able to cater products and services to customers within limited period of
time. This enables them to take benefits from rivals in market. This is described by Ayers and
Odegaard (2017), It is evaluated that there are various terms which will include into SCM and
these are raw material procurement, total quality management, customer service, retailers,
forecasting of demand, wholesaler, distributors and in addition some other intermediaries.
CONCLUSION
From above assignment it has been understood that, supply chain management is
fundamental for each and every kind of company. Therefore, they will be able to provide
products and services to customers within limited period of time. It assists an affiliation to
improve profits and in addition market share. They will reduce unnecessary cost from procedure
of business. Various fundamentals of SCM is described into this project.
4

REFERENCES
Books and Journals
Ayers, J. B. & Odegaard, M. A. (2017). Retail supply chain management. CRC Press.
Brindley, C. ed. (2017). Supply chain risk. Taylor & Francis.
Dubey, R. & et. al. (2017). Sustainable supply chain management: framework and further
research directions. Journal of Cleaner Production. 142. pp.1119-1130.
Gattorna, J. (2017). Introduction. In Strategic supply chain alignment. pp. 15-21. Routledge.
Genovese, A. & et. al. (2017). Sustainable supply chain management and the transition towards a
circular economy: Evidence and some applications. Omega. 66. pp.344-357.
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Reefke, H. & Sundaram, D. (2017). Key themes and research opportunities in sustainable supply
chain management–identification and evaluation. Omega. 66. pp.195-211.
Werner, H. (2017). Supply Chain Management: Grundlagen, Strategien, Instrumente und
Controlling. Springer-Verlag.
Zhao, R. & et. al. (2017). An optimization model for green supply chain management by using a
big data analytic approach. Journal of Cleaner Production. 142. pp.1085-1097.
Online
Disadvantages of SCM. 2018. [Online]. Available through: <https://bizfluent.com/info-8600015-
disadvantages-scm.html>.
Four fundamentals of SCM. 2018. [Online]. Available through:
<http://www.nitl.ie/Four_Fundamentals_of_SCM/Default.126.html>.
5