Sustainable Supply Chain Management Strategies
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This assignment delves into the critical aspects of sustainable supply chain management. It emphasizes the significance of implementing environmentally friendly production processes, ensuring employee safety, and fostering strong relationships with suppliers and customers. The analysis highlights the role of technology in enhancing sustainability within supply chains, along with the need for continuous improvement and adaptation to evolving industry standards.
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Running head: LOGISTICS CHAIN MANAGEMENT
Logistics Service Provider
Name of the Student:
Name of the University:
Author Note:
Logistics Service Provider
Name of the Student:
Name of the University:
Author Note:
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1SUPPLY CHAIN MANAGEMENT
Table of Contents
Abstract:.....................................................................................................................................2
Purpose.......................................................................................................................................2
Design/methodology/approach:.................................................................................................2
Findings:.....................................................................................................................................4
Environmental factors:...........................................................................................................4
Information technology:.........................................................................................................5
Practical implications:................................................................................................................5
Economies of scale and continuous productivity:..................................................................5
Risk distribution and sustainability:.......................................................................................6
Supply chain management and workplace risk:.....................................................................6
Originality/Value:......................................................................................................................7
Thematic Analysis Table:..........................................................................................................7
References:...............................................................................................................................10
Table of Contents
Abstract:.....................................................................................................................................2
Purpose.......................................................................................................................................2
Design/methodology/approach:.................................................................................................2
Findings:.....................................................................................................................................4
Environmental factors:...........................................................................................................4
Information technology:.........................................................................................................5
Practical implications:................................................................................................................5
Economies of scale and continuous productivity:..................................................................5
Risk distribution and sustainability:.......................................................................................6
Supply chain management and workplace risk:.....................................................................6
Originality/Value:......................................................................................................................7
Thematic Analysis Table:..........................................................................................................7
References:...............................................................................................................................10
2SUPPLY CHAIN MANAGEMENT
Abstract:
The aim of the assignment is to review fifteen articles to identify the major themes of
logistics service provider and present them along with a thematic analysis table. The paper
has five themes, which delve into the roles supply chain management plays in today’s
manufacturing sector. The first theme introduces logistics chain management briefly, while
the second theme delves into the factors, which determine supply chain management in
companies. The third theme discusses the significance of logistics chain management to
manufacturing companies while the fourth theme discusses simple model of supply chain in
form of a thematic analysis flowchart. The final theme deals with a very crucial issue
concerning logistics chains-workplace hazards and accidents.
Purpose
The purpose of the paper is to study the increasing importance of the logistics chain
management. The distribution or the logistics chain refers to the network of distributors,
which result in distribution of finished products in the market. The companies today maintain
worldwide supply chains and logistics chains to meet their varied requirements of products.
Abstract:
The aim of the assignment is to review fifteen articles to identify the major themes of
logistics service provider and present them along with a thematic analysis table. The paper
has five themes, which delve into the roles supply chain management plays in today’s
manufacturing sector. The first theme introduces logistics chain management briefly, while
the second theme delves into the factors, which determine supply chain management in
companies. The third theme discusses the significance of logistics chain management to
manufacturing companies while the fourth theme discusses simple model of supply chain in
form of a thematic analysis flowchart. The final theme deals with a very crucial issue
concerning logistics chains-workplace hazards and accidents.
Purpose
The purpose of the paper is to study the increasing importance of the logistics chain
management. The distribution or the logistics chain refers to the network of distributors,
which result in distribution of finished products in the market. The companies today maintain
worldwide supply chains and logistics chains to meet their varied requirements of products.
3SUPPLY CHAIN MANAGEMENT
Design/methodology/approach:
Figure 1. A simple moderated mediation framework showing simplified logistics chain
management
(Source: Author)
The simple moderated mediation framework above shows a simplified diagram of a
supply chain model. The figure starts with suppliers of raw materials, which provide the
company or the manufacturer with the raw materials. According to Monczka et al.(2015)
supply chain management of the manufacturing companies depend on the type of finished
goods they manufacture. According to Hoejmose, Roehrich and Grosvold (2014)
multinational companies maintain global supply management chains to supply them with raw
materials and ensure uninterrupted production of finished goods.
Raw material
producer
Raw material
producer
Manufacturer Finished
Product
Distributors and
logistics chains
Customers
Design/methodology/approach:
Figure 1. A simple moderated mediation framework showing simplified logistics chain
management
(Source: Author)
The simple moderated mediation framework above shows a simplified diagram of a
supply chain model. The figure starts with suppliers of raw materials, which provide the
company or the manufacturer with the raw materials. According to Monczka et al.(2015)
supply chain management of the manufacturing companies depend on the type of finished
goods they manufacture. According to Hoejmose, Roehrich and Grosvold (2014)
multinational companies maintain global supply management chains to supply them with raw
materials and ensure uninterrupted production of finished goods.
Raw material
producer
Raw material
producer
Manufacturer Finished
Product
Distributors and
logistics chains
Customers
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The next step is the production of finished goods using modern technology. Agus and
Ahmad (2017) reiterate that advancement of information technology and advent of advanced
production plants allow the companies to carry on uninterrupted production of finished.
Seuring (2013) reiterates that supply chains strategies form the base of production strategies
companies. The supply chain management is the upstream activity, which leads to production
of finished. The last step is the downstream activity, which leads to the companies
distributing their finished using their distribution and logistics chains. This leads to the
products reach the final consumers and that completes the supply chain management.
Findings:
The research shows that integration of upstream and downstream logistics chain
integrated using information technology is very significant to the companies today. They are
very significant to the core operations of these companies because the steady supply of raw
materials ensure smooth production of goods and services in the business organisations. For
example, the supply of milk, cocoa powder and other dairy products are important raw
materials for the dairy companies. The supply of plastic cards and chips ensure steady supply
of sim cards and telecommunication services in the telecommunication companies. The
smooth flows of supply of raw materials ensure that the companies are able to keep their cost
of production low and enhance their profit margins. Similarly, intricate network of logistics
chains enable multinational companies to sell their products globally generation
massive revenue. The following are the factors affecting supply chain management and
logistics chain management of different companies:
Environmental factors:
Govindan et al. (2014) point out that there are various environmental factors like
business environment, change of customer preferences, change of technology and
The next step is the production of finished goods using modern technology. Agus and
Ahmad (2017) reiterate that advancement of information technology and advent of advanced
production plants allow the companies to carry on uninterrupted production of finished.
Seuring (2013) reiterates that supply chains strategies form the base of production strategies
companies. The supply chain management is the upstream activity, which leads to production
of finished. The last step is the downstream activity, which leads to the companies
distributing their finished using their distribution and logistics chains. This leads to the
products reach the final consumers and that completes the supply chain management.
Findings:
The research shows that integration of upstream and downstream logistics chain
integrated using information technology is very significant to the companies today. They are
very significant to the core operations of these companies because the steady supply of raw
materials ensure smooth production of goods and services in the business organisations. For
example, the supply of milk, cocoa powder and other dairy products are important raw
materials for the dairy companies. The supply of plastic cards and chips ensure steady supply
of sim cards and telecommunication services in the telecommunication companies. The
smooth flows of supply of raw materials ensure that the companies are able to keep their cost
of production low and enhance their profit margins. Similarly, intricate network of logistics
chains enable multinational companies to sell their products globally generation
massive revenue. The following are the factors affecting supply chain management and
logistics chain management of different companies:
Environmental factors:
Govindan et al. (2014) point out that there are various environmental factors like
business environment, change of customer preferences, change of technology and
5SUPPLY CHAIN MANAGEMENT
competitors which impact logistics chains. For example, changes in customer preferences
make the suppliers introduce new products, which in turn make them acquire new
logistics chains to acquire raw materials and logistics chains to sell their products. The
multinational companies obtain their raw materials from abroad owing to the diverse range of
their products. Seuring (2013) points out further that in case of overseas procurement,
bilateral relationship between nations play a very important role. It is easier to procure
materials from nations having stronger political relationships. This analysis shows that
environmental factors have profound impact on the logistics chain management in the
companies.
Information technology:
Information technology has a very profound impact on logistics chain management.
Stadtler (2015) point out that companies today acquire materials from all across the world
and require to collaborate with global supply chain networks. Information technology helps
these companies to communicate and partner with this globally distributed supply chains.
Similarly, companies use advanced technology to collaborate with overseas distributors and
retail chains to sell their products. Ecommerce has strengthened the logistics chains and help
companies to advertise and sell their products before a large number of consumers.
According to Brandenburg et al. (2014), the modern supply portals allow companies to view
materials, their attributes, supply conditions and rates according to their requirements. It also
allows the companies to place orders, manage their ordering time and stock of raw materials.
Thus, information technology determines supply chain management because advancement in
IT results in integration and expansion of supply chain management all over the world.
competitors which impact logistics chains. For example, changes in customer preferences
make the suppliers introduce new products, which in turn make them acquire new
logistics chains to acquire raw materials and logistics chains to sell their products. The
multinational companies obtain their raw materials from abroad owing to the diverse range of
their products. Seuring (2013) points out further that in case of overseas procurement,
bilateral relationship between nations play a very important role. It is easier to procure
materials from nations having stronger political relationships. This analysis shows that
environmental factors have profound impact on the logistics chain management in the
companies.
Information technology:
Information technology has a very profound impact on logistics chain management.
Stadtler (2015) point out that companies today acquire materials from all across the world
and require to collaborate with global supply chain networks. Information technology helps
these companies to communicate and partner with this globally distributed supply chains.
Similarly, companies use advanced technology to collaborate with overseas distributors and
retail chains to sell their products. Ecommerce has strengthened the logistics chains and help
companies to advertise and sell their products before a large number of consumers.
According to Brandenburg et al. (2014), the modern supply portals allow companies to view
materials, their attributes, supply conditions and rates according to their requirements. It also
allows the companies to place orders, manage their ordering time and stock of raw materials.
Thus, information technology determines supply chain management because advancement in
IT results in integration and expansion of supply chain management all over the world.
6SUPPLY CHAIN MANAGEMENT
Practical implications:
Agus and Ahmad (2017) state that, logistics chain management plays very significant
roles like, ensuring continuous production, which in turn results in customer satisfaction. The
following section would point the practical implications of logistics chain management to
companies:
Economies of scale and continuous productivity:
Yinan, Tang and Zhang (2014) point out that, companies maintain and manage
extensive upstream logistics chains to acquire high quality raw materials at economies of
scale. This helps them to ensure continuous production and maintain their low cost of
production. Chopra and Sodhi (2014) point out that extensive logistics chain management
enable the companies to acquire high quality raw materials on continuous basis. Extensive
logistics supply chains enable companies to nullify the shortage of raw materials in one
market buy obtaining it from another market. This helps them to bridge disruptions in
production, which once again contribute towards high productivity. A globally spread
network enable companies to sell their products all over the world and earn huge revenue.
Thus, supply chain management ensures continuous productivity whereas a global logistics
chain ensures sell of products globally to earn huge profits.
Risk distribution and sustainability:
Christopher (2016) points out that the market environmental today is experiencing
several risk factors like downturn, shortage of raw materials, changes in the tastes of
consumers and advent of new technology. These incidents have profound impacts on the
productivity of the manufacturing companies and require them to maintain and manage
global supply chains. Wisner, Tan and Leong (2014) points out that the governments,
customers and the communities at large today require business organisations to operate
sustainably. The management bodies of these organisations seek to gain sustainability to
Practical implications:
Agus and Ahmad (2017) state that, logistics chain management plays very significant
roles like, ensuring continuous production, which in turn results in customer satisfaction. The
following section would point the practical implications of logistics chain management to
companies:
Economies of scale and continuous productivity:
Yinan, Tang and Zhang (2014) point out that, companies maintain and manage
extensive upstream logistics chains to acquire high quality raw materials at economies of
scale. This helps them to ensure continuous production and maintain their low cost of
production. Chopra and Sodhi (2014) point out that extensive logistics chain management
enable the companies to acquire high quality raw materials on continuous basis. Extensive
logistics supply chains enable companies to nullify the shortage of raw materials in one
market buy obtaining it from another market. This helps them to bridge disruptions in
production, which once again contribute towards high productivity. A globally spread
network enable companies to sell their products all over the world and earn huge revenue.
Thus, supply chain management ensures continuous productivity whereas a global logistics
chain ensures sell of products globally to earn huge profits.
Risk distribution and sustainability:
Christopher (2016) points out that the market environmental today is experiencing
several risk factors like downturn, shortage of raw materials, changes in the tastes of
consumers and advent of new technology. These incidents have profound impacts on the
productivity of the manufacturing companies and require them to maintain and manage
global supply chains. Wisner, Tan and Leong (2014) points out that the governments,
customers and the communities at large today require business organisations to operate
sustainably. The management bodies of these organisations seek to gain sustainability to
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7SUPPLY CHAIN MANAGEMENT
reducing costs and produce environment friendly products. Global logistics chain
management allows companies to choose from a large number of suppliers and obtain raw
materials from the suppliers producing environment friendly raw materials. It allows the
companies to maintain their high standards of raw materials and prevent them from being
exploited by the suppliers. This analysis shows that logistics chain management enables the
business organisations diversify their risks of material shortages, exploitation by suppliers
and achieve sustainability.
Logistics chain management and workplace risk:
Monczka et al.(2015) points out that raw materials of the manufacturing companies
include inflammable substances like petrol, diesel and benzene. The lubricants used for the
machines and other harmful substances can lead to accidents leading to employee injuries or
even death. These logistics chains of the manufacturing companies of all the big industries
like automobile, construction, telecommunication and FMCG are subject to workplace risks.
Scheibe and Blackhurst (2017) points out that the accidents are capable of stalling partial or
total production process. One can also point out that workers involved in the warehouses of
the logistics companies are also prone to accidents due to bulky finished products. Accidents
of employees involved in acquiring and handling raw materials and work-in-progress
materials have attracted huge penal charges for companies. Thus, the companies today
manage their supply chain and distribution chains strategically to avoid accidents to the
extent possible.
Thematic Analysis Table:
No. Key Themes Description of Key
Elements
Dominant
concepts
References
reducing costs and produce environment friendly products. Global logistics chain
management allows companies to choose from a large number of suppliers and obtain raw
materials from the suppliers producing environment friendly raw materials. It allows the
companies to maintain their high standards of raw materials and prevent them from being
exploited by the suppliers. This analysis shows that logistics chain management enables the
business organisations diversify their risks of material shortages, exploitation by suppliers
and achieve sustainability.
Logistics chain management and workplace risk:
Monczka et al.(2015) points out that raw materials of the manufacturing companies
include inflammable substances like petrol, diesel and benzene. The lubricants used for the
machines and other harmful substances can lead to accidents leading to employee injuries or
even death. These logistics chains of the manufacturing companies of all the big industries
like automobile, construction, telecommunication and FMCG are subject to workplace risks.
Scheibe and Blackhurst (2017) points out that the accidents are capable of stalling partial or
total production process. One can also point out that workers involved in the warehouses of
the logistics companies are also prone to accidents due to bulky finished products. Accidents
of employees involved in acquiring and handling raw materials and work-in-progress
materials have attracted huge penal charges for companies. Thus, the companies today
manage their supply chain and distribution chains strategically to avoid accidents to the
extent possible.
Thematic Analysis Table:
No. Key Themes Description of Key
Elements
Dominant
concepts
References
8SUPPLY CHAIN MANAGEMENT
1. Logistics Chain
Integration
1. Companies integrate
upstream and downstream
integration.
2.Upstream-partnering with
the suppliers to acquire high
quality raw materials
3.Downstream-partnering
with distributors to make
products reach final
customers.
Exchange of
information
Sustainability
Seuring (2013)
Govindan, et al.,
(2014)
Scheibe,and
Blackhurst (2017)
2 Information
Technology
1.Information technology
help companies to integrate
and manage their supply
chains
2.It also help companies to
manage their logistics chain
management.
Information
technology,
Supply chain
Stadtler (2015)
Brandenburg et al.
(2014)
3 Environment 1.The environmental factors
like political factors like
government policies and
level of technological
environment impact supply
chains.
2. Change of customer
preferences, advent of
ecommerce and development
of logistics hubs have great
Politics,
Government
policies
Govindan et al.
(2014)
Agus and Ahmad
(2017)
1. Logistics Chain
Integration
1. Companies integrate
upstream and downstream
integration.
2.Upstream-partnering with
the suppliers to acquire high
quality raw materials
3.Downstream-partnering
with distributors to make
products reach final
customers.
Exchange of
information
Sustainability
Seuring (2013)
Govindan, et al.,
(2014)
Scheibe,and
Blackhurst (2017)
2 Information
Technology
1.Information technology
help companies to integrate
and manage their supply
chains
2.It also help companies to
manage their logistics chain
management.
Information
technology,
Supply chain
Stadtler (2015)
Brandenburg et al.
(2014)
3 Environment 1.The environmental factors
like political factors like
government policies and
level of technological
environment impact supply
chains.
2. Change of customer
preferences, advent of
ecommerce and development
of logistics hubs have great
Politics,
Government
policies
Govindan et al.
(2014)
Agus and Ahmad
(2017)
9SUPPLY CHAIN MANAGEMENT
driving impact on logistics
chains.
4 Continuous
production and
economies of scale
1.Supply chain management
helps companies acquire raw
materials at best prices and
ensure continuous
production. It helps them
achieve economies of scale
2. Logistics chain
management helps the
companies to sell their
products globally.
Lower
production,
continuous
production,
economies of
scale
Yinan, Tang and
Zhang (2014)
Christopher
(2016)
5 Risk distribution and
sustainability
1.Multinational companies
today acquire multiple
supply chain management to
acquire goods from them.
This ends domination of a
small number of suppliers
and allows the companies
choose from among the ones
supply raw materials at the
best rates. The supply chain
management also help obtain
sustainable products and
achieve sustainability.
2. Distribution chain helps
companies to distribute their
goods using the services of
Sustainability,
multiple supply
chain models
Christopher
(2016)
Mithas, Krishnan,
and Fornell,
(2013)
Hoejmose,
Roehrich, and
Grosvold (2014)
driving impact on logistics
chains.
4 Continuous
production and
economies of scale
1.Supply chain management
helps companies acquire raw
materials at best prices and
ensure continuous
production. It helps them
achieve economies of scale
2. Logistics chain
management helps the
companies to sell their
products globally.
Lower
production,
continuous
production,
economies of
scale
Yinan, Tang and
Zhang (2014)
Christopher
(2016)
5 Risk distribution and
sustainability
1.Multinational companies
today acquire multiple
supply chain management to
acquire goods from them.
This ends domination of a
small number of suppliers
and allows the companies
choose from among the ones
supply raw materials at the
best rates. The supply chain
management also help obtain
sustainable products and
achieve sustainability.
2. Distribution chain helps
companies to distribute their
goods using the services of
Sustainability,
multiple supply
chain models
Christopher
(2016)
Mithas, Krishnan,
and Fornell,
(2013)
Hoejmose,
Roehrich, and
Grosvold (2014)
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10SUPPLY CHAIN MANAGEMENT
the economic distributors.
This helps them to make
their products available to
the customers at low prices
and earn huge profits.
6 Supply chain
management and
logistics chain
management and
workplace risk
1. Supply chains are prone o
great hazards due to
requirements of storing
hazardous chemicals like
petrol.
2. Warehouses of logistics
companies are also prone to
accidents and hazards to
workers due to bulky
finished goods like bulky
electronic goods.
Hazards Monczka et al.
(2015)
Scheibe and
Blackhurst, 2017
7 Risk diversification 1. Supply chains diversify
risks of shortage of raw
materials
2. Distribution chains
diversify risks of shortage of
demand in one particular
market.
Demand, supply Monczka et al.
(2015), Yinan,
Tang and Zhang
(2014)
8 Smooth productivity 1. Logistics management
enables smooth transport of
raw materials from suppliers
Production,
transport
Hoejmose,
Roehrich, and
Grosvold(2014)
the economic distributors.
This helps them to make
their products available to
the customers at low prices
and earn huge profits.
6 Supply chain
management and
logistics chain
management and
workplace risk
1. Supply chains are prone o
great hazards due to
requirements of storing
hazardous chemicals like
petrol.
2. Warehouses of logistics
companies are also prone to
accidents and hazards to
workers due to bulky
finished goods like bulky
electronic goods.
Hazards Monczka et al.
(2015)
Scheibe and
Blackhurst, 2017
7 Risk diversification 1. Supply chains diversify
risks of shortage of raw
materials
2. Distribution chains
diversify risks of shortage of
demand in one particular
market.
Demand, supply Monczka et al.
(2015), Yinan,
Tang and Zhang
(2014)
8 Smooth productivity 1. Logistics management
enables smooth transport of
raw materials from suppliers
Production,
transport
Hoejmose,
Roehrich, and
Grosvold(2014)
11SUPPLY CHAIN MANAGEMENT
to the company.
2. It ensures smooth
production.
9 Customer satisfaction 1. Smooth transport of raw
materials by logistics chains
results in smooth
production .2. This ensures
customer satisfaction
Customer
satisfaction
Scheibe and
Blackhurst(2017)
10 High revenue 1. Customer satisfaction
results in earning high
revenue.
2. This helps company to
gain competitive advantage.
3. The company earns higher
market position.
Competitive
advantage and
higher market
position.
Hörisch, ,
Freeman and
Schaltegger(2014)
11 Open innovation 1. Logistics chains supply
raw materials smoothly.
2. This encourages
companies to share their
resources to carry out open
innovation.
3. Open innovation results in
more innovative goods
Innovation,
innovative goods
Mithas, Krishnan
and Fornell(2013)
12 Sustainability 1. Logistics chains enables
companies to acquire
products from local and
international suppliers.
Economic
development,
community
welfare
Christopher
(2016)
to the company.
2. It ensures smooth
production.
9 Customer satisfaction 1. Smooth transport of raw
materials by logistics chains
results in smooth
production .2. This ensures
customer satisfaction
Customer
satisfaction
Scheibe and
Blackhurst(2017)
10 High revenue 1. Customer satisfaction
results in earning high
revenue.
2. This helps company to
gain competitive advantage.
3. The company earns higher
market position.
Competitive
advantage and
higher market
position.
Hörisch, ,
Freeman and
Schaltegger(2014)
11 Open innovation 1. Logistics chains supply
raw materials smoothly.
2. This encourages
companies to share their
resources to carry out open
innovation.
3. Open innovation results in
more innovative goods
Innovation,
innovative goods
Mithas, Krishnan
and Fornell(2013)
12 Sustainability 1. Logistics chains enables
companies to acquire
products from local and
international suppliers.
Economic
development,
community
welfare
Christopher
(2016)
12SUPPLY CHAIN MANAGEMENT
2. This helps the local
suppliers earn revenue by
selling goods to the
companies
3. Encourages economic
development
13 Niche marketing 1. More specialised logistics
chains enables companies to
gain more specific raw
materials.
2. Encourages them to carry
out niche marketing.
3. cater to more specific
needs of the customers
Niche marketing Monczka et al.
(2014)
14 New products 1. Innovations between
companies result in new
products.
2. This helps companies to
cater to new customer base.
3. More profit generation.
New products,
new customer
base
Chopra and
Sodhi(2014)
15 Entrepreneurial
ventures
1. Logistics chains encourage
new entrepreneurial ventures.
2. Economic development of
economies ‘
3.Sustainaility
Entrepreneurial
ventures,
economic
development
Yinan, Tang and
Zhang(2014).
2. This helps the local
suppliers earn revenue by
selling goods to the
companies
3. Encourages economic
development
13 Niche marketing 1. More specialised logistics
chains enables companies to
gain more specific raw
materials.
2. Encourages them to carry
out niche marketing.
3. cater to more specific
needs of the customers
Niche marketing Monczka et al.
(2014)
14 New products 1. Innovations between
companies result in new
products.
2. This helps companies to
cater to new customer base.
3. More profit generation.
New products,
new customer
base
Chopra and
Sodhi(2014)
15 Entrepreneurial
ventures
1. Logistics chains encourage
new entrepreneurial ventures.
2. Economic development of
economies ‘
3.Sustainaility
Entrepreneurial
ventures,
economic
development
Yinan, Tang and
Zhang(2014).
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13SUPPLY CHAIN MANAGEMENT
Companies today maintain both supply chains and distribution chains, which spread
across the world. The advancement of information technology has helped the companies to
partner with suppliers of raw materials and logistics chains from all over the globe. This
integration of several supply chains helps the companies to receive uninterrupted supply of
raw materials and ensure seamless production. The logistics chains spread all over the world
help the companies to sell their finished goods. This helps them to diversify economic
downturns and reduction of demand in one market and sell their products in other markets.
This allows the companies to earn continuous profits and diversify their risks and losses.
Conclusion:
Supply chain management are of immense importance to the manufacturing
companies because they uninterrupted production of finished goods. The supply chains of
companies are dependent on various factors like category of finished goods and technological
advancements. The companies should maintain sustainable supply chains to ensure
environment friendly modes of production and employee safety.
Companies today maintain both supply chains and distribution chains, which spread
across the world. The advancement of information technology has helped the companies to
partner with suppliers of raw materials and logistics chains from all over the globe. This
integration of several supply chains helps the companies to receive uninterrupted supply of
raw materials and ensure seamless production. The logistics chains spread all over the world
help the companies to sell their finished goods. This helps them to diversify economic
downturns and reduction of demand in one market and sell their products in other markets.
This allows the companies to earn continuous profits and diversify their risks and losses.
Conclusion:
Supply chain management are of immense importance to the manufacturing
companies because they uninterrupted production of finished goods. The supply chains of
companies are dependent on various factors like category of finished goods and technological
advancements. The companies should maintain sustainable supply chains to ensure
environment friendly modes of production and employee safety.
1 out of 14
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