Report on Supply Chain Management

Added on -2020-02-14

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Operational Management
Table of Contents
INTRODUCTION................................................................................................................................3
Meaning of the Supply Chain Management....................................................................................3
Importance of the Information Technology in the Supply Chain Management..............................6
Theory of Production...............................................................................................8
Concepts of the Supply Management System.................................................................................8
CONCLUSION..................................................................................................................................10
REFELECTION.................................................................................................................................10
REFERENCES...................................................................................................................................11
INTRODUCTION
Supply Chain Management is a oversight of materials, information and finances and they
move in to a process from supplier to manufacturer, and to wholesaler to retailer and at last to
consumer. (Klein, 2009). The study is based on the role of the supply chain management activities
and the role of information technology in it. The purpose of the report is to find out and address all
those essential elements which can affect the suppliers and their role for using information
technology in business. In this report meaning of the supply chain management, its components,
roles and essentials factors are described. Along with this the benefits of IT for suppliers is also to
be elaborated in the study.
Meaning of the Supply Chain Management
There are three main areas in a business these are marketing, finance and operations. Supply
Chain management is a study which focus on the various aspects of the business such as effective
planning, control of a manufacturing and services. This is a process in which the entity has to take
care of all the essential elements of production and manufacturing. It includes the models,
equations, representations and physical models (Wahlström, 2009). These models help in
understanding the cost factors which are to take place in the manufacturing and production
processes. SCM is a continuous process in it the materials, information and finances are used to
move in the direction and coordinating and integrating flows are managed in the business. Thus it
is very important to use all the essential element in taking care of the aspects of this process.
Quality, production, inventory, accounting management and other functions are used in this process.
Decision making process is also a part of the supply chain management, material, labour and cost
factors are calculated and evaluated in the process. Operational manger must have the knowledge of
the latest trends and technologies so that this process can be used in an effective manner.
Thus is the most important strategy or term which is used in the business so that the
manufacturing activities can be done properly and in a specified manner. There are some rules and
policies which are to be taken care for taking the most important decisions in the process of the
SMC (Huckman and Zinner, 2009). SMC decides the strategic issues including size of the
manufacturing plant, project management methods and implementing the structure of the
information technology. Other levels include inventory level, work in progress level and raw
material acquisition, quality control and maintenance policies. There are numerous formulas which
are used and determined in the operational management studies. It is very important for the
suppliers to follow all the regulations and rules so that the costing can be done properly and the
control on the various activities can be done. Business operations in the production and services are
involved to utilize the resources in optimum manner.
GKN is a Public limited company it makes parts for the automotive and aerospace industry.
The suppliers follow the structure of the Supply chain management and it has the wide working
network (Holt and Ghobadian, 2009). It is the administration which create the highest level of the
efficiency in the organizations. Operational management utilizes resources from staff, materials,
equipments and technology. So it is a wider term which should be used in the business areas to
produce the final goods in such manner that there cannot be remained any error with the quality of
the product. In it two most important terms are used such as the supply chain and logistic. The
system is based in various terms.
Supply Chain management is wider term and it is compulsorily be used in the organizations.
In this approach Economic order quantity and PERT network chart is used to demonstrate the things
in clearer manner. There are some models which are used in SMC, and these models help in
assessing and knowing the reality. The decision making can be done by using these models in the
most effective manner. The prime models of this approach are described as under:
Operational research Models: these are the most important models which are used under
SMC, approach. In it the management has to take care of the external and internal elements which
can have any kind of impact on the matters and their effect on this strategy. Suppliers can have the
benefits by using the information technology. (Shekdar, 2009).
Inventory Models: In the level of the inventory is identifies and the input and output methods
are used to evaluate the implications of the inventory levels. There is the IT tool which can be
helpful for the entity in making it aware on the issues related with the quick supply.
Forecasting Models: these are the most important models which are used by the manager so
that the decisions can be taken accordingly. It is very essential to estimate the future fluctuations
and this can be advantageous for the organization, to forecast the future by this the fluctuations can
be identified and the workings can be done accordingly (Rippel, Suchánková and Teplý, 2012).
Network Models: This the model which can be used for making the proper networks with the
suppliers and vendors so that the material can be distributed and sold accordingly.
Production Planning and control Method: This model explains that the planning can be
done for the production and control of the all the functions. The manufacturing activities can be
done by using various elements of IT. And these are cost effective for suppliers.
Variances Analysis: in it the study is done on the variances which have taken place while
giving a completion to the manufacturing process. Mangers' make an effort to remove these
variances.
Supply chain Management
It is the mixture of the materials, information and finances. It is a process I which the goods
or the material is delivered from suppliers to manufacturers and from manufacturers to wholesalers

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