Impact of Successful Global Supply Chain Management Practices on Overall Organization Performance

SUPPLY CHAIN MANAGEMENT
Impact of Successful Global Supply Chain Management Practices on Overall Organization
Performance
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SUPPLY CHAIN
MANAGEMENT 2
Supply management is defined mainly as a system that includes all the
organization activities that include the flow, transformation of goods from their original raw
material form, all the way to the end consumer. This process also includes the flow of
information, which includes internal communication (business-to-business) and business to their
consumer this is a two-way flow of information and process (Moroz 2018,(7), pg.,535-537 ).
Global supply chain management has remained a very critical factor, some of the components
making up GSCM include lean manufacturing, ERP, risk management and outsourcing and
environmental supply chain(Dorozhkina 2017, pg., 96-101). This assignment aims to critically
examine the perspective of GSCM, with the risk and challenges faced within the organization.
The research also offers different techniques and methodologies used to solve issues that arise in
the supply chain
Lean manufacturing is one of the effective ways in cost reduction in the
manufacturing industry and enhances certain business operations.it can be defined as a method
that is used in the reduction of unwanted cost and reduces wastage during manufacturing system
in order to positively increase production (Dorozhkina 2017, pg., 96-101). Lean manufacturing is
critical to industries that deal with perishable goods example companies that deal with perishable
goods. There are four types of wastes;
1. Wasted resources
2. Waste life cycles
3. Wasted capacity (vehicles unused 90% of their life cycle)
4. Wasted embedded values

SUPPLY CHAIN
MANAGEMENT 3
Example of waste resources ASOS and H&M uses language packaging’s that entails specific
language of the target market. This has dramatically affected the company’s sales, which in turn
has reduced the opportunity of venturing into new markets and companies versatility.
Lean manufacturing can be best understood from Toyota production system which is known for
reducing its original Toyota seven waste to improve the overall customer value such as increased
inventory unnecessary movement of people or machinery, unnecessary transportation, defects
that may require efforts and cost for correction( Law 2018,36(3), pg.,341-352 ). The benefits of
lean manufacturing include a reduction in lead times, reduced operating cost, and improve
product quality. Toyota production system may help in reducing manufacturing cost by almost
22% through the positive use of resources. Similarly, six sigma may also be used as an effective
method of eliminating arising issues during the manufacturing process. Lean manufacturing
entails five principles that entail;
 Customer values are identified from their perspective; companies need
to understand customers need and values and strive in achieving them.
The cost value of a product is usually defined by the producer, but they
set by the customer. Reduction of waste and cost during the production
process ensures the company leaps maximum from the price paid by
the customers.
 Mapping of the value stream; this entails proper recording of
information and all the products that are required during the
production of a particular product. the value stream entails the
complete cycle of a product from its original raw material form to its
final disposable form ( Chang and Park 2008, 17(1),pg., 113-
130)Companies must strive to reduce wastes in every stage of
production; everything that does not add value to the product must be
eliminated.
 Creation of flow; companies must strive to eliminate all functional
barriers in order to increase and improve lead time; this ensures there
is smooth flow during the whole production process, flow ensures
there is the elimination of waste(Santos and Silva 2012,pg.,1-17). Lean

SUPPLY CHAIN
MANAGEMENT 4
manufacturing ensures there is reduced interruption during the
production process and increase harmony and integration of activities.
 Establishment of a pull system; this means that company should only
engage in producing new products only when there is demand for
them, lean manufacturing uses pull systems instead of the push system,
pull process entails use of manufacturing resource planning where
inventories are pre-planned and products are produced to fit this
specification, but sometimes this forecast is not collect. However, in a
pull system, nothing is produced unless there is a demand for them.
 Pursue perfection with involves a continuous process of improvement;
lean manufacturing is a continuous b process that continuously strives
to achieve perfection( Zahraee 2016.,7(2)., pg 136-148)., this entails
understanding the leading cause of a problem and correcting the
mistakes in order to eliminate waste throughout the production
process.