Comprehensive Report: Supply Chain Management System Analysis

This report delves into the core concepts of supply chain management (SCM), emphasizing its critical role in business efficiency. It begins with an introduction to SCM, defining its function in coordinating product, information, and financial flows from suppliers to consumers. The report highlights the importance of SCM in reducing costs and meeting customer demands. The problem statement section addresses key challenges, such as inventory and supply management, and the impact of disruptions across the supply chain. The report then outlines basic SCM principles, including customer segmentation, network customization, and supply source management. It explores the significance of SCM, noting its impact on reducing operating costs, improving financial positions, and even sustaining human life through the delivery of essential goods. The report concludes by reiterating the importance of SCM in enhancing efficiency, service levels, and responsiveness. It underscores the role of demand-driven planning for reliable supply and customer satisfaction. The report is supported by relevant references, providing a comprehensive overview of the subject.

Running Head: Supply Chain Management
Supply Chain Management

Supply Chain Management 1
Table of Contents
Introduction...........................................................................................................................................2
Problem Statement................................................................................................................................2
Basic Principals.................................................................................................................................2
Significant of Supply chain management system..................................................................................3
Conclusion.............................................................................................................................................3
References.............................................................................................................................................4

Supply Chain Management 2
Introduction
Supply chain management can be seen as a system working on the efficiency of
system. Supply chain management is used to move a material, information from supplier to
consumer via manufacturer, wholesaler, and retailer. It involves coordinating the flow of
information in the company. It decreases the inventory cost of the product and manages the
flow of the product. Supply chain management mainly deals with product flow, information
flow and finance flow (Gil et. al, 2010). Product flow mainly includes efforts to move a
product from supplier to customer. The information flow deals with transferring the data and
updating about the delivery of the product.
For any business to be successful in today’s era, it needs to mobilize suppliers and customers
to diminish unnecessary cost and serve the best value to final customers. It helps in meeting
customer requirements (Stadtler, 2015).
Problem Statement
There are many problems in supply chain management system at the business level
which affects the business in many ways. Main comes from managing the amount of
inventory; it is difficult to manage the amount of product needed to meet customers demand.
Along with managing inventory, managing supply is also important (Van , A, 2010).Knowing
how many suppliers are needed to avoid delay and product reached on time to customer. Also
if the problem is experienced in one part if chain it penetrates through whole chain which
decrease the effectiveness of the system.
Supply chain managers have a difficult job. They have to deal with all the risk factor along
with their supply chain; they also ensure the company has the good amount of suppliers so
that company supply chain management goes smoothly (Flynn, Huo & Zhao, 2010).
Basic Principals
Supply chain management follow some principal for resolving the issue and focuses on the
revenue growth of the organisation.
 Initially, it segments the customer according the service needed.
 Then customizing the customer on the network according to their need.
 Then looking for an appropriate market plan, and differentiating the products for the
supply chain.
 Managing the sources of supply and reducing the cost by developing the flow of the
product, information or service over the network so that product reaches the end user
effectively.
Nowadays, business are running on online ecommerce store that offers new opportunities by
providing larger platform for marketing, by reducing the cost of setting a business and
supports automated marketing strategies which has already impacted the way supply chains
are organized and markets are driven.
In order to deal with these problems, and provide security and better quality some
information is needed for smooth functions. Supply chain management helps in boosting

Supply Chain Management 3
customer service as customers receive their products on their desired location as well as on
time.
Significant of Supply chain management system
Supply chain management reduces operating cost by decreasing production cost and
decreasing total supply cost. It also helps in improving finical position of the company by
increasing profit cost and decreasing the firm’s assets.
SCM helps in sustaining human life as it deliver all the basic necessity from food to water.
Supply chain is also used to deliver medicines, which is very useful at time of medical
emergency. It basically helps in maximizing the speed and efficiency by providing fast
service which is beneficial of the organization, as customers chooses the company that meets
their need instantly (Tang & Musa, 2011).
Benefits of supply chain management systems include: lower costs, this can be achieved by
adding an effective SCM system to a business; this adds global efficiency of the product
which in turn helps the businesses to improve (Jacobs, Chase & Lummus, 2014 ).
Supply chain help companies to grow and many companies fail due to poor management of
supply chain. Root cause of success is supply chain management it helps in decreasing the
delivery time, improving the service quality and growing the market by new and fast services.
Conclusion
Supply chain management is important for business as it focuses on increasing the
efficiency and service between customer and customer. It increases the performance of the
system by decreasing the cost, increasing the service level; rapidly respond from the market
about the new product. SCM is used for planning, execution and controlling the supply chain
by creating maximum net value and increase the networking of the company in the global
market. Supply chain can be improved by adopting a demand driven planning approach as it
ensures reliable and predictable supply to customers.

Supply Chain Management 4
References
Gil, R., Gangopadhyay, D., Zhou, J., Gordon, S., & Nayak, S. (2010). U.S. Patent No.
7,761,319. Washington, DC: U.S. Patent and Trademark Office.
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management
and advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.
Van Weele, A. J. (2010). Purchasing and supply chain management: Analysis, strategy,
planning and practice. Cengage Learning EMEA.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on
performance: A contingency and configuration approach. Journal of operations
management, 28(1), 58-71.
Tang, O., & Musa, S. N. (2011). Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics, 133(1), 25-
34.
Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.