Broad Perspectives of Global Supply Chain Management and Techniques to Resolve Supply Chain Issues

This research provides a comprehensive overview of global supply chain management and explores various techniques to resolve supply chain issues. Learn about the significance of lean manufacturing, ERP systems, outsourcing, and risk management in supply chain management. Discover the importance of environmental sustainability in the supply chain.

SUPPLY CHAIN
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Table of Contents
Introduction......................................................................................................................................3
Background of global supply chain management............................................................................3
Lean manufacturing.........................................................................................................................4
ERP..................................................................................................................................................5
Outsourcing and risk management..................................................................................................7
The environmental supply chain......................................................................................................8
Summary........................................................................................................................................10
Reference list.................................................................................................................................12
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Introduction
Supply chain is elucidated as a network between supplier and company to produce and deliver a
firms product to final buyers positively. The purpose of this assignment is to examine broad
perspectives of global supply chain management along with potential risks and challenges to
amend a positive change within organization. The research shed light on different techniques and
methods to resolve supply chain issues for progressive growth. In order to explore implication of
supply chain positively, different theories and models are also implemented vigilantly to make
sure maximum benefit can be gathered positively. On another hand, environmental supply chain
has also evaluated critically to determine an effective strategy to enhance organizational
performance in a systematic manner.
Background of global supply chain management
Global supply chain management is considered as one of the effective ways to improve business
operation through proper planning in aiming to generate an optimums level of customer service.
There are mainly three components of supply chain that help in managing resources through
multidimensional approach that embraces processes, people and technology. It has been evident
that people play an important role in managing sources, storage and manufacturing due to
adequate skills and knowledge.
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Figure 1: Sectorial analysis of supplier
(Source: Dnb.co.uk, 2019)
The above figure signifies the progressive growth of the supply chain in different sectors that
clearly evident that there is a significant change in the supply chain approach. By evaluating
different perspectives of supply chain management, supplier financial risk is a key factor in
determining buyer-supplier relationships. Through critical analysis of quick change in supply
chain management, it has been observed that manufacturing and wholesale sectors have
comparatively lower risk then finance and services. In order to understand perspective supply
chain, a case study has been selected related to Argo Direct that helps in explore implication of a
supply chain for sustainable development of an organization. According to this case study, the
Argos Direct website is the second most visited retail site with more than 100 million visits in
the UK. Through critical analysis of supply chain, it has been observed that there are over 70%
of UK households with more than 35 million catalogues issues experienced by the company
(Busse, 2017). Argos Direct has implemented Manhattan Associates Warehouse Management
that creates an open systems solution that eventually increased the efficiency of business
operation systematically. The major advantage of this supply chain management is a high
response to the consumer demand that gradually reduced failure of delivery positively. Hence, it
can be asserted that a global supply chain management plays an important role in enhancing
fiscal performance and reliability of organizational performance positively.
Lean manufacturing
Lean manufacturing is an effective way to reduce cost manufacturing methods and strategies that
facilities many international companies to enhance business operation positively. It can be
elucidated as a methodology that focuses on minimizing unbearable cost or waste during
manufacturing system in order to enhance productivity positively. The implication of lean
manufacturing can be understood through evaluating a case study related to Toyota that helps in
examining the significance of supply chain management positively (Chae, 2015). As per the case
study, it has been found that the Toyota production system laid out seven wastes and resources
such as excess inventory, unnecessary transportation and overproduction of a product. With the
help of Toyota productions system, it is easy to reduced manufacturing cost by 22% through the
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optimum use of resources positively. Similarly, six sigma is also an effective way to eliminates
potential defect within the product during manufacturing systems.
Figure 2: Six Sigma
The above figure signifies the implication of supply chain management within an organization
that reduces defect through the optimum use of resources. In case if the thickness of a product is
around 10.32 and 10.35 as per the consumers demand then the Six Sigma makes it to 10.35 with
0.05 standard deviation (Supplychainacademy.org.uk., 2019). Therefore, it can be asserted that
lean manufacturing and six sigma play an important in reducing manufacturing cost gradually.
On another hand, the network theory of supply chain describes a significant relationship between
supplier and companies. According to network theory, it is essential to monitor the on-going
process of manufacturing to ensure that potential and changes can be positively reduced.
Through following this theory in lean manufacturing, the decision-making process gets
automatically increased that facilitates in controlling inventory (Chin et al. 2015). One of the
major advantages of network theory is the implementation of an integrated supply chain to
enhance productivity and fiscal performance in order to meet the needs and requirements.
ERP
ERP stands for enterprise resource planning that helps in managing resources that enable the
organization in managing inventory through integrated technology, human resources and
services positively. The major advantage of ERP is an integrated approach to supply chain that
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facilitates analyses data and handles on-going risks that eventually enhance the reliability of
business positively. In order to understand the broad perspective of the supply chain, a case study
has been selected related to Mark and Spencer that helps in explores implication of supply chain
positively. It has been found that there are about more than 80,000 employees associated with
M&S that drive business into sustainable development positively (Supplychainacademy.org.uk,
2019). In 2012, the company has initiated to enhance proactive position by minimizing potential
challenges in the supply chain. Under this process, the company has implemented multi-channel
retailing, new market penetration and shifting sourcing location. By implementing these
initiatives to supply chain, it is easy to upsurge current role of associate member by encouraging
delegate operation as an integral whole positively (Chopra & Meindl, 2007). Most of the time, it
has been witnessed that M&S has experienced issues related to managing inventory and supply
chain that reduce the progressive development of the company gradually.
Figure 3: Benefit of ERP s system in supply chain
(Source: Created by researcher)
In 2017, the company has experienced a peak profit of 62% that is about 66.8 million dollar
through implementing ERP system that helps in managing resources and inventory
systematically. On another hand, network theory has been selected to analysis broad perspectives
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ERP
system
Facilates in
bettrer
project
planning
Imporve
accuracy of
financial data
Reduce
redundants
tasks
Asset
Business
needs

of ERP systems in context to supply chain. Through critical analysis of network theory, it has
been evident that supplier strategy plays an important role in taking a critical decision that
creates a trustworthy relationship positively. It has been observed that a network of companies is
required to analysis vigilantly through sourcing strategies to ensure that maximum benefit can be
gathered positively (Fahimnia et al. 2015). Hence, it can be asserted that ERP system support
organization in managing resources through an integrated approach with the help of technology
and people that eventually enhance productivity.
Outsourcing and risk management
The risk management and outsourcing are playing a significant role in the supply chain to ensure
that maximum benefit can be gathered positively. Undersupply chain management, there is a
number of risks and issues that may affect the reliability and feasibility of organizations. One of
the major risks of supply chain management is an unanticipated cost that referred to hidden fees
or changes that directly reflect on efficiency and financial saving positively. On another hand,
the risk such as a hike in the shipping cost for freight and associated taxes that reduce cost
projection significantly. Similarly, Integration difficulty is also a big issue in supply chain that
address to transition process that required a range of considerable time investment and financial
backing from both parties (Revilla & Sáenz, 2014).
Hence, it can be asserted that a minor issue in ineffective communication can result in delays of
delivery. In order to understand significance of issues in supply chain, a case example has been
evaluated related to Mothercare that help in explore wide perspectives of issues s positively. As
per the case study, it has been evident that Mothercare is considered as leading retail store of
babies’ products for parent and mother (Manh.com, 2019). By evaluating the case study, it has
been witnessed that the company experienced some challenges related to warehouse
management and new logistics network that gradually reduce the reliability and fiscal
performance by 25% in 2013. Hence, the company has initiated in implementing Manhattan
solution that offered seamless DC inventory management to mitigate issues such as s national
distribution centre positively. Through these initiatives, the productivity of Mothercare gets
increased that eventually upsurge international growth positively.
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On the contrary, the identified issue can be mitigated through outsourcing by managing a range
of resources through a systematic approach. The major benefit of outsourcing is reducing overall
costs by hiring a professional organization that has adequate knowledge and experience in
managing optimum resources positively. By implementing, outsourcing in the supply chain, it is
easy to meet the demand and expectation of consumers positively (Business.org, 2019). It
enables organization to collaborate with third-party that increased flexibility and reliability of
business positively. Therefore, it can be asserted that there are some issues within supply chain
management that can be mitigated through proper planning and systematic approach. It is
requisite to implement outsourcing as an important tool to gain competitive advantage and
reliability positively.
The environmental supply chain
Supply chain sustainability is one of the important aspects of business that affect supply chain or
logistics network in terms of waste cost and environmental risk positively. it has been witnessed
that there is a growing demand for integration environmental within the supply chain that
facilities in manage resources and inventory control positively The UN global compact
highlighted some principle related to environmental principles such as promote environmental
responsibility, encourage environmental technologies and precautionary approach to
environmental challenges positively (Stevens & Johnson, 2016). This principle of environment
resists organization to perform unethical practices in gaining competitive advantage. In regard to
the supply chain, it has been evident that organizations need to encourage suppliers to use cost-
efficient pollution prevention (PP) and cleaner productivity (CP) that helps in achieving
sustainable development positively. It is essential to work with a supplier in order to identify
sources of pollution to prevent pollution and waste positively.
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Figure 4: ARA model in Partner selection with supply chain framework
(Source: Impgroup.org, 2019)
In order to understand broad aspects of the environmental supply chain, a supply chain
framework, and ARA model has critically evaluated that help in understanding issues and
challenges that may occur in supply chain effectively. According to ARA model, it is requisite to
determine requisite resources and activities related to performance measure to ensure that
maximum benefit can be gathered positively (Tachizawa et al. 2015). Under this process, an
effective partnership is required to amend by compliance with an organizational structure that
helps in reduce organizational structure positively.
Through critical analysis of supply chain management, it can be asserted that a systematic
approach is required to apply to reduce potential risks can be reduced positively. The three levels
are needed to implement such as beginner, improver and achiever that help in consider all
requisite factors that influence the reliability and sustainability of supply chain within
organizations.
Beginner  Encourage environmental impact
within the supply chain
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 The organization is requisite to ensure
that a proper and legitimate
environmental a regulation is
implemented in the supply chain
process
Improver  Proper implementation of
environmental management systems
that reduce potential risk in the supply
chain
 Ensure continuous improvements of
environmental impacts in the supply
chain that enforce organization to
apply the new approach and
innovative techniques to enhance
business performance positively.
Achiever  Application of best use of techniques
and partnership for environmental
practices for maximum result of
supply chain a positively such as
Ecolabelling schemes and
environmental management scheme
Table 1: Steps to achieve environmental Supply chain
(Source: Created by researcher)
Summary
The entire research provides a broad perspective of supply chain along with respective tools and
techniques to achieve sustainable development positively. There are several techniques and
methods to ensure that manufacturing cost and inventory can be controls positively. The
decision-making process gets automatically increased through lean management that facilitates
in controlling inventory. By implementing these initiatives to supply chain, it is easy to upsurge
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current role of associate member by encouraging delegate operation as an integral whole
positively. On another hand, network theory has been selected to analysis broad perspectives of
ERP systems in context to supply chain. In addition, it can be asserted that a systematic approach
is required to apply positively to ensure that maximum benefit can be gathered positively. The
principles of environmental aspects are needed to consider for maximum benefit.
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Reference list
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management/ [Accessed on 5 May 2019]
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global supply chains: A prerequisite to sustainable supply chain management. Journal of Supply
Chain Management, 53(1), 87-113.
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Production Economics, 165, 247-259.
Chin, T. A., Tat, H. H., and Sulaiman, Z. (2015). Green supply chain management,
environmental collaboration and sustainability performance. Procedia CIRP, 26, 695-699.
Chopra, S., and Meindl, P. (2007). Supply chain management. Strategy, planning & operation.
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Fahimnia, B., Sarkis, J., and Davarzani, H. (2015). Green supply chain management: A review
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Genovese, A., Acquaye, A. A., Figueroa, A., and Koh, S. L. (2017). Sustainable supply chain
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Impgroup.org (2019), Supply Chain, Available from
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Manh.com (2019), Manhattan solution, Available from:
https://www.manh.com/sites/default/files/sys/documents/2017/05/manh-mothercare-en-gb.pdf
[Accessed on 5 May 2019]
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Revilla, E., and Sáenz, M. J. (2014). Supply chain disruption management: Global convergence
vs national specificity. Journal of Business Research, 67(6), 1123-1135.
Stevens, G. C., and Johnson, M. (2016). Integrating the supply chain… 25 years
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Tachizawa, E. M., Alvarez-Gil, M. J., and Montes-Sancho, M. J. (2015). How “smart cities” will
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