Issues in Supply Chain Management and Recommendations

Global Logistic Supply Chain 1
Global Logistic Supply Chain

Global Logistic Supply Chain 2
Executive summary
The success of an organization depends on effectiveness of supply chain management. It is
essential for the organizations to have an effective operation management to manage the
production procedure as well as manage the supply chain management practices. Jungle
Furniture Ltd (JFL) is facing issues in its supply chain management, which has influenced its
production procedure and productivity. Customer services and resource utilization are two major
objectives of supply chain management that must be considered by the organizations to attain the
organizational objectives in desired manner. In addition, the organizations should make efforts to
improve their supply chain management practices to improve their operational functions in better
manner.

Global Logistic Supply Chain 3
Introduction
The aim of this essay is to critically discuss possible issues in operation management and supply
chain management as well as recommendations to overcome these issues. This essay is analyzing
supply chain management in Jungle Furniture Ltd that have influenced production procedures
and generated several issues in business operations. In addition, the essay is also examining the
possible resources, order-winning and order-qualifying factors that are required for sustainable
competitive advantages.
Critical analysis of the problem
Supply chain management includes a wide range of activities required to plan, control and
execute flow of products and services from acquiring raw materials and production through
distribution to end customer in cost-effective and most streamlined manner to maximize the
organizational profitability. According to Niknam et al., (2011), supply chain management
entails planning, supervising and organizing processes to compose required improvements in
supply of products and services for higher organizational profitability. Supply chain management
also ensures that the labor, materials and any other inputs are utilized in most efficient and
effective manner to maximize the organizational profitability. From the case study, it is analyzed
that Jungle Furniture Ltd (JFL) has not adopted effective operation management practices to
manage its production, marketing and supply chain processes in a proper manner. The company
is sometimes unable to secure its order of raw material on time as the suppliers give priority to
export orders of larger customers. Sometimes, the raw materials are not purchased by the
company on time even when the supply should be available. The staff of JFL has passionate

Global Logistic Supply Chain 4
disputes on this issue and the material manager has also complained about the quality of raw
material. Due to this issue, the supply chain department of the company is not able in using the
inventory at the desired level, which has been caused of increased production costs (Barratt et al.,
2011). In this concern, there is ineffective supply chain management processes due to improper
communication between different individuals of different departments.
In an organization, supply chain management entail being recognizable with different disciplines
to manage the operational activities in most effective manner. In the words of Lavastre et al.,
(2012), supply chain management integrates wide-ranging management of factory equipment
maintenance to manage the operational practices and level of inventory as well as deliver the
products and services for consumption to the target customers. In an organization the supply
chain managers know frequent strategic policies, production and manufacturing system,
fundamental material arrangement and their breakdown. Along with this, Goodale et al., (2011)
stated that effective communication is essential between the production department and
marketing department to manage the inventory in essential manner. In lack of proper
communication between the marketing department and production department, the operation
managers cannot perform their responsibilities in proper manner. From the case study of JFL, it
is analyzed that there is lack of proper communication between the sales reps and operation
managers regarding the demand and supply of furniture products due to which the operation
department is facing the issue of inventory management as the company does not have
appropriate inventory to deliver the products quickly. For instance, the sales department of the
company does not share sales forecasts with the operation department and the operation
department makes own forecasts for production of products and services. Thus, the operation
manager of JFL does not have entire required information while making the business decisions