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Integrated Supply Chain Management PDF

   

Added on  2020-12-10

12 Pages3713 Words234 Views
Integrated value of thesupply chain

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Core processes of the supply chain, value chain and virtual value chain...............................1Development stages involved in supply chain management..................................................3Business integration models...................................................................................................4Approach of value to the hospitality industry........................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONIntegrated value of supply chain and its management is crucial for every business in orderto manage operational activities and other resources such as raw material management,inventories, production process etc. This will help business to produce quality products andservices for customers in order to increase competitive advantage effectively. The report istotally based on value chain model and supply chain management especially. It will coverprocess of supply chain management with value and virtual value chain. In addition to this,development stages involved in business to improve SCM and examples of business integrationmodels which support integration of supply chain in firm. Finally, the concept of approach ofvalue to hospitality industry is also explained in order to evaluate benefits to business.MAIN BODYCore processes of the supply chain, value chain and virtual value chainSupply chain management is important for every business in order to manage relationshipwith suppliers that helps to provide raw materials of better quality in order produce effectiveproducts and services for customers in the market Aung & Chang, (2014). This will help toenhance customer satisfaction as well as experience which increases the profitability andproduction. Supply Chain: Supply chain management is necessary for businesses in order to manageand control flow of products and services which also include movement of raw materials andstorage effectively. In this, work in process related to inventory and finished goods is alsoincluded. It can be described as a network in simple words in between a business and itssuppliers that helps to produce and distribute a particular product and service which representssteps to get product to consumer in the market. Supply chain management is also described as abroad range of different activities required to make strategies, plan and execute flow of productand service from acquiring raw materials and things which are important in the process of supplychain management.Value chain: Value chain can also be described as set of activities that a businessoperates in a specific industry in order to deliver valuable products and services to customers inthe market effectively. The Value Chain Model is developed by Michael Porter which helps todescribe process in which a company receives raw materials and add value to them in order to1

create finish and complete products and services which are delivered to consumers in the marketaccording to their needs. Integrated values: Value is the amount that buyers are willing to pay for what a businessprovides them. In addition to this, value is measured by total revenues, reflection of the price afirm's products command and the unit it can sell. A company is profitable if the values itcommands exceeded the cost involved in creating a product or service effectively. It can be saidthat value chain is integrated with the values of supply chain management in terms of quality andeffective products as well as services. Customers in the market expects quality products from thebusinesses and ready to pay for that. In this respect, value chain or process will help to add valuein products and services that helps to deliver quality services and goods in the market whichhelps to increase profitability and production Beske & Seuring, (2014). This will help companyto build a competitive infrastructure and supply with measurement of demand effectively.Virtual value chain: The virtual value chain was created by Jeffrey Rayport and JohnSviokla in the form of a business model which helps to describe dissemination of value generatesinformation services through an extended business. This will also support physical value chain ofprocurement, distribution, manufacturing and sales of traditional businesses effectively. It can besaid that in today's digital information system and technology world, virtual chain model iscrucial for businesses that it helps to integrate information and data to operational activities inorder to drive production and profitability.Integrated values: There are a lot of procedures that consist of physical value chain suchas operational activities, raw materials, delivery, production and sales, marketing and otherservices involved in company. Information technology has changed the views of looking at valuechain and introduced the concept of virtual value chain effectively. The main concept of virtualvalue chain is to look at current internet penetration which provides addition to existing valuechain efficiently Chen, Preston & Swink, (2015). The information provided by virtual valuechain is crucial as well as important for business in order to optimise it for performance at eachstage of operations. This will help to improve customer experience with brand and enhance samethrough new products and services offered in the market.Thus, it can be said that value chain and virtual value chain; both are important forbusiness in order to manage and control effectiveness of production process in order to produce2

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