Global Supply Chain Management and Logistics - Importance, Practices, and Strategies

This report assessment will be comprised of essential and insightful knowledge of supply chain management in a business organisation. Moreover, it will be including literature review of determined concept in order to provide reader with efficient understanding of the same. Furthermore, it will be further highlighting examples of real companies to determine implementation as well as impact of Supply Chain Management in a respective organisation.

Global supply chain
Management and
Logistics

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Supply Chain Management..........................................................................................................1
Supply Chain Management in Amazon.com...............................................................................5
Supply Chain Management in Mc donalds..................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Supply Chain Management is determined as an essential element of management
procedure being implemented in a business organisation. For instance, it includes monitoring and
managing the flow of goods or services offered by company between various different locations
in order to serve people in society. In addition to that, it initially starts with accumulation of raw
materials as input in a workplace as well as movement of final products or output to be supplied
into consumer market. This report assessment will be comprised of essential and insightful
knowledge of supply chain management in a business organisation. Moreover, it will be
including literature review of determined concept in order to provide reader with efficient
understanding of the same (Copacino, 2019). Furthermore, it will be further highlighting
examples of real companies to determine implementation as well as impact of Supply Chain
Management in a respective organisation.
MAIN BODY
Supply Chain Management
The determined process is comprised of various components or elements which facilitate
in efficient completion of operations and activities carried out in the workplace. For instance,
these essential components includes Planning, Sourcing, Production, Delivering, and Reverse
Logistics. Supply Chain Management initially starts planning process which involves
consideration of all the factors and aspects related to determined procedure to be carried out in
workplace. In addition to that, succeeding step taken into consideration is sourcing which
involves identification and determination of suppliers and vendors in order to accumulate raw
materials for production of output. After accumulation of input, succeeding step is process of
converting input into output. Moreover, output or final products produced by company is
supplied to consumer market with most suitable and appropriate delivery channels and logistics.
After providing products and services to customers, providing customer support services is
further taken into account in order to resolve issues or problems faced by customers in
consumption of products or services offered by business organisation (Langley, and et. al., 2020)
(Sanders, 2020).
According to Pranjal, 2020, Supply Chain Management plays a crucial role in ensuring
organisation growth and success. For instance, efficient implementation of activities and

practices related to supply chain management contributes various values towards improvisation
and enhancement of efficiency and productivity in a workplace. Importance of Supply Chain
management lies in various different aspects which are as follows:
 Reduction in Operating Cost: Supply Chain Management facilitates in reduction in cost
with identification and determination of most suitable and appropriate supply chain in
order to provide customers with quality. In addition to that, suppliers of raw materials
often looks out for faster supply chain of companies to avoid storage of costly inventories
in their own storage units. Moreover, efficient supply chain management helps in
effective optimisation of storage units in order to make the most efficient use of the
storage units.
 Increased Efficiency: Supply chain facilitates in various aspects including resource
procurement, delivering final product, and logistics. For instance, it supports business
organisation with determination of most suitable strategies in order to achieve
organisational goals and objectives. It further facilitates in coping up with uncertainty in
dynamic business environment with consideration of factors and aspects impacting upon
operations and activities in workplace. In addition to that, it provides real-time
information and knowledge for availability of raw materials to be used in production or
manufacturing of products or services offered by a company.
 Higher Profitability: Efficient supply chain management enhances profitability in
carrying out operations and activities in workplace in an efficient manner. For instance,
information and knowledge acquired in this process further lead to designing and
development of efficient strategies in order to be implemented in workplace to reduce
cost incurred in carrying out business operations. Furthermore, reduction in cost directly
results in higher profitability to business organisation from the same. Therefore, it
facilitates in providing information about upcoming consumer demands as well as market
trends which allows company in being ready to face future circumstances.
 Enhanced Financial Position: Supply Chain management contributes various values
towards optimum utilisation of resources as well as various fixed assets of company. For
instance, it includes raw materials, manufacturing unit, storage unit, transportation, etc.
which results in providing efficient financial stability to a business organisation. In
addition to that, it also provides effective accounting methods to respective organisation

in order to manage finances in a workplace. Information and knowledge provided by
Supply chain management contributes support towards essential or necessary decision-
making.
 Better command over quality control: Analysing acquired information facilitates in
determination of most efficient suppliers of raw materials required in workplace in order
to carry out operations and activities. For instance, efficient supply chain management
provides a strong command over quality control with consideration of suitable and
appropriate suppliers. In addition to that, effective command over quality control in a
workplace directly or indirectly lead to improvisation and enhancement of brand image in
the market. Furthermore, coordination with most appropriate suppliers as well as
consideration of consumer demands in market results in effective command over quality
control.
According to Ashish M. Shaji, 2021, Supply Chain Management is oriented upon various
objectives in a business organisation. For instance, it includes several factors and aspects which
results in providing maximum benefits towards achievement of organisational goals and
objectives. In addition to that, this procedure is determined at managing the movement of input
as well as output from and towards workplace of company. Objectives of Supply Chain
Management are as follows:
 To increase overall value to maximum extent: This aspect of supply chain is described
as balance of amount paid by customer for purchasing a particular product or service and
cost incurred in production and supplying the same. For instance, it states that, higher the
profitability of Supply Chain Management, higher will be chances for organisation
success and growth. In addition to that, it is aimed at providing maximum profitability to
business organisation in order to carry out operations and activities. It facilitates in
accelerating overall growth of a business organisation.
 Improvisation of cost quality: Operations and activities organised in Supply Chain
management are determined at improvisation of cost quality in workplace with designing
and development of strategies in order to reduce cost incurred to business. For instance, it
includes consideration of efficient supplier of raw materials, suitable supply chain,
transportation, etc. which further facilitates in reduction in cost to respective organisation.
In addition to that, information and knowledge acquired in supply chain practices and

activities contributes various values towards development of most suitable and efficient
strategies in order to minimise cost as well as increases profitability.
 To seek out for cost as well as revenue resources: Supply Chain management practices
also includes identification and determination of resources of funds as well as revenue.
For instance, customers of products and services offered by company results in being the
only source of revenue. On the other hand, it also determines sources of raising funds in
order to carry out business operations and activities. Furthermore, consideration of most
suitable sources of funds and revenue results in being positive aspects which supports
success and growth of a business organisation.
 Fulfilment of consumer demand: Information acquired through implementation of
practices and activities in Supply chain management contributes essential knowledge
towards company. For instance, it includes forecasting of upcoming market trends,
consumer demands, operations in competitive market, etc. Forecasting of future demands
of consumers allows companies to be ready to serve customers in society with their
products and services. Furthermore, it helps business entities in fulfilment of consumer
demand in an effective as well as efficient manner.
 Flexibility: Efficient supply chain management further facilitates in providing flexibility
in strategic planning for development of efficient strategies according to current situation
and scenario. For instance, it provides with systematic and efficient procedure to
companies in order to supply products or services to customers. As a result, it facilitates
in carrying out practices and activities with adjustment to current changes in workplace.
Furthermore, supply chain management is engaged in acquiring information and
knowledge for upcoming market trends as well as consumer demands in order to cope up
with changes in an efficient manner.
 Enhanced distribution: With the consideration of various factors and aspects impacting
upon operations and activities carried out in a workplace, supply chain management
facilitates in development of most suitable and efficient supply chain. For instance, this
process is oriented upon improvising current approach towards distribution of products
and services to customers. Furthermore, with the use of efficient supply chain developed
through implementation of supply chain management, a business organisation could
ensure maximum supply of products or services to be served to maximum customer base.

 Customer service: There is a problem faced by many business organisation which
includes inability of company to deliver right products or services at appropriate location.
For instance, efficient supply chain management facilitates in prevention of this major
issue faced by companies as well as also ensures after-sales service to customers.
Customer support provided by business organisations includes pickup of inappropriate
delivery as well as initiation of corrective measures for the same. Furthermore, it
contributes various values towards satisfaction of customers as well as retention of
customers towards respective organisation (Objectives and Functions of Supply Chain
Management, 2021).
Supply Chain Management in Amazon.com
Being a huge and wide business organisation, Supply Chain Management plays a crucial
role in carrying out operations and activities in an efficient manner. For instance, as the
respective organisation is engaged in providing online shopping and delivery services to
customers in society, there is a huge necessity of implementation of efficient supply chain
management (Waters, 2019). Moreover, it will facilitate respective organisation to operate with
strategies in order to minimise cost in operations as well as increasing profitability in carrying
out operations and activities to serve people with products and services. In order to ensure
fulfilment of customer customer demands in market or society, respective organisation has been
initiated efficient function named as Amazon Fulfilment Centre. Furthermore, it is determined as
storage units as platforms where delivery partners arrive, pick, pack, and deliver products to
customers.
Supply Chain practices in Amazon
The respective organisation operates with huge network of warehouses or storage units in
various different locations in order to serve people with products and services in minimum
duration of time. For instance, it includes warehouses as well as effective transportation facility
which facilitates in timely delivery in least possible cost of carrying out business operations.
Information technology has been taken into consideration by respective organisation in order to
acquire and analyse information which allows designing and development of efficient strategies
(Russell and Taylor, 2019). Moreover, skilled workforce and advanced technology implemented
in workplace of respective organisation supports in upright inventory management as well as

completion of business operations in an efficient manner. Therefore, it accelerates organisational
growth and success as well as achievement of organisational goals and objectives.
Game-Changing Delivery Strategy
Amazon launched additional unit of service named as Amazon Prime which is
determined premium account for customers. For instance, it requires an annual membership
charge which further provides services of delivery within two working days including enormous
amount of products. In addition to that, this initiative of respective organisation gave rise to
dominance over other competitor brands in the market. Implementation of efficient and
innovative strategies further provided competitive advantage to company in serving higher
number of customers in society (Green, and et. al., 2019). Furthermore, another beneficial
initiative by respective organisation was choice of timing for delivery. This strategy was
comprised of two options to be considered for delivery which included home delivery from 9
a.m. to 10 p.m. and official delivery form 10 a.m. to 4 p.m. Therefore, all these initiatives further
contributed towards attaining efficient market position in consumer market with highest amount
of customer base.
Supply Chain Management in Mc donalds
McDonalds is engaged in providing food products to customers in their retail outlets
worldwide. For instance, respective organisation is operating upon large scale operations in order
to serve huge customer base from all around the globe. Supply chain management of respective
organisation is praised all around the world as it provides food items reasonable prices to
customers all around the world. Efficient implementation of supply chain practices and activities
has facilitated respective organisation in reaching immense heights of growth and success (Pettit,
Croxton and Fiksel, 2019). In addition to that, information and knowledge acquired by respective
organisation through supply chain management has supported in fulfilment of customer demands
in different locations.
E-Procurement System
The respective organisation is engaged in using a digital system named as Emac Digital
Company owner by Mcfonalds and Accel-KKR Inernet Co. For instance, E-procurement is
determined as a platform which facilitates respective business organisation to purchase inputs
required to carry out their operations and activities in order to serve customers with their food
products (Johnsen, Howard and Miemczyk, 2018).

Supply Chain Strategies
The respective organisation is operating with efficient supply chain strategies in order to
carry out operations and activities in an efficient manner. For instance, activities and practices in
supply chain management of respective organisation includes accumulation of information,
inventory management, consideration of most suitable supply chain, procurement, quality
inspection, etc.
All these activities and practices facilitates in ensuring efficient completion of operations
and activities of respective organisation in their workplace. In addition to that, Buns and coke are
only products that are accumulated by respective organisation directly to their retail outlets in
order to be served to customers (Sodhi and Tang, 2021). The food items are procured at storage
units at temperature ranging from room temperature to frozen state according to need and
requirements of respective organisation. Furthermore, information and knowledge acquired by
supply chain management further facilitates in development of efficient strategies in order to
achieve organisational goals and objectives (Craighead, Ketchen Jr and Darby, 2020).
CONCLUSION
From the above report assessment, it could be concluded that Supply Chain management
plays an essential role in ensuring organisational growth and success. For instance, importance of
supply chain management in a business organisation lies in reduction in operating cost,
increasing profitability, enhancing financial position, customer service, etc. The determined
process is aimed at improvisation of cost quality, fulfilment of customer demand, enhancement
of distribution, etc. in order to serve customers in an efficient manner. Furthermore, this report is
highlighting supply chain management in amazon and McDonalds in order to enhance
understanding of determined topic or matter.

REFERENCES
Books and Journals
Copacino, W. C., 2019. Supply chain management: The basics and beyond. Routledge.
Craighead, C. W., Ketchen Jr, D. J. and Darby, J. L., 2020. Pandemics and supply chain
management research: Toward a theoretical toolbox. Decision Sciences, 51(4), pp.838-
866.
Green, and et. al., 2019. Comprehensive supply chain management model. Supply Chain
Management: An International Journal.
Johnsen, T. E., Howard, M. and Miemczyk, J., 2018. Purchasing and supply chain management:
A sustainability perspective. Routledge.
Langley, and et. al., 2020. Supply chain management: a logistics perspective. Cengage Learning.
Pettit, T. J., Croxton, K. L. and Fiksel, J., 2019. The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics, 40(1), pp.56-65.
Russell, R. S. and Taylor, B. W., 2019. Operations and supply chain management. John Wiley &
Sons.
Sanders, N. R., 2020. Supply chain management: A global perspective. John Wiley & Sons.
Sodhi, M. S. and Tang, C. S., 2021. Supply chain management for extreme conditions: research
opportunities. Journal of Supply Chain Management, 57(1), pp.7-16.
Waters, D., 2019. Supply chain management: An introduction to logistics. Bloomsbury
Publishing.
Online
Importance Of Supply Chain Management, 2020. [Online] Available Through:
<https://stockarea.io/blogs/importance-of-supply-chain-management-scm/>
Objectives and Functions of Supply Chain Management, 2021. [Online] Available Through:
<https://enterslice.com/learning/objectives-and-functions-of-supply-chain-management/>