Supply Chain Management

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author notes:

1SUPPLY CHAIN MANAGEMENT
It can be said that the supply chain management function is one of the most crucial
parts of a business. The efficacy of the same determines the level of consumer satisfaction
and the degree of achievement and success of the company (Yu et al. 2013). A good supply
management system is said to enhance the level of consumer service and satisfaction, keep
the operating costs under check and stabilize the financial position of the company (Yu et al.
2013). The supply chain of “sunny days” constitutes of the suppliers, the manufacturer, the
retailer and finally the consumers.
The supply chain of sunny days follows five steps. The Planning phase is the first
step of the process. It includes the operational, tactical and the business strategy. It is the
stage that is concerned with, determining the size and locations of the manufacturer, research
of the market and determination of the nature of the logistics division. In order to adjudge the
nature of performance of this phase, the performance indicators should be looked at. Since
this stage mainly involves planning, the component should be measured and thus should be
measurable. Along with the financial indicators, the non-financial indicators such as
relationship with the manufacturer, competency and location of the same should be adjudged
as they will determine the long term success of the company.
The next two stages are development and manufacturing of the ice creams. The nature
of the operation, be it outsourced or not, the owner would have to establish and build
relations with the suppliers and the manufacturers. The standards of the company’s
operations and their products and the performance outcome as implied by the same can be
measured by indicators such as benchmarking and inventory metrics. Benchmarking is a
process by which the products of a company are put to the test against the top performers of
the company (Jothimani and Sarmah 2014). Receipt of the inventory should be marked. This
helps in maintaining stock accuracy which becomes beneficial when measuring the stock turn
over from the warehouses and the manufacturing units. Additionally the operations should be