Supply Chain Management: Concepts, Principles, and Processes

This report explores the key concepts, principles, and processes of supply chain management (SCM) and their application in an organizational context. It examines the importance of effective SCM from the perspectives of customers, suppliers, distributors, and retailers. The report also evaluates the interrelationships between SCM and other areas of an organization, using theories, concepts, and models. Finally, it analyzes a supply chain strategy within an organization and presents proposals for improvement, including justification and recommendations.

Supply Chain Management
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Contents
Introduction................................................................................................................................4
LO1 Apply key supply chain concepts, principles and processes in an organisational context 6
P1 Demonstrate how key supply chain concepts, principles and processes are applied
throughout the stages of resourcing, product design and development, logistics and
distribution.............................................................................................................................6
M1 Evaluate how integration of supply chain concepts, principles and processes improve
organisational efficiency......................................................................................................10
LO2 Evaluate the importance of effective supply chain management. (SCM).......................13
P2 Evaluate the importance of effective SCM from the perspective of customers, suppliers,
distributors and retailers.......................................................................................................13
M2 Critically evaluate the importance of physical, information and financial flow
management within the supply chain...................................................................................19
LO3 Evaluate the interrelationships between supply chain and other areas of an organisation.
..................................................................................................................................................20
P3 Evaluate the cross-functional and integrated approach of SCM with other areas of an
organisation..........................................................................................................................20
M3 Examine the implications of interrelationships between the supply chain and other
functional areas using theories, concepts and / or models...................................................24
LO4 Evaluate a supply chain strategy within an organisation and present proposals for
improvement............................................................................................................................27
P4 Evaluate a supply chain strategy within an organisation and present proposals for its
improvement........................................................................................................................27
M4 Critically evaluate a supply chain strategy within an organisation and present proposals
for its improvement..............................................................................................................31
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D2 Justify and recommend improvements of a supply chain strategy based on the critical
evaluation.............................................................................................................................34
Conclusion................................................................................................................................38
References................................................................................................................................39
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Introduction
Supply Chain Management is the process which provides the flow of goods and services and
movement of the storage of raw materials in the work-in-process inventory. The supply of
products and services to the companies and their stores is included in this process. Supply
chain management determines the need for raw materials and its management so as to ensure
timely delivery in an organisation. The supply chain management helps in dealing with the
effective and efficient management of products and services in an organisation. There is a lot
of importance to the supply chain management in every organisation. Supply chain
management process leads the way in attempting the effective supply strategies for the
companies in an effective manner. The majority of the supply chain management is done in
the different companies to work and process their supply of raw materials smoothly and
easily. This provides that the working of the whole production of the company is based on the
supply chain management process as the raw materials and products are to be provided to the
production team on the time to produce the final product within the expected time. The
complete supply chain management process determines its special working and importance in
the organisation. The supply chain management process also becomes a challenge for the
company in case of expansion of the product line and company in different country or place.
The supply chain becomes challenging because of the new environment, new supplier
channels and different governmental regulations and policies. These affect the supply chain
management process of the company in some new country. The expansion for the company is
important for its growth. To develop the expansion requires the smooth working process in a
company. This overall report is on the supply chain concepts and processes and their impact
on the different areas and functions of the organisation. The impact on efficiency in the
working and its impact on the relationships with the suppliers, distributors and retailers are
explained under this report. The use of various concepts, theories and models which are
related with the supply chain management process are considered to show the importance of
SCM in the company. The impact of supply chain and the use of it for improving efficiency
in the organisations are discussed under this presented report to analyse the role of supply
chain in an organisation. This report is based on the Disney store which is a brand store of the
Disney and is licensed for running the business in the different parts of the world serving the
Disney world items and to the world. This is basically a company serving in different parts of
the world and is founded in California. Its headquarters is in USA and is a subsidiary
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company of Walt Disney. The company is planning to expand its business internationally in
different parts of the world. Although it operates in the area of North America, Europe and
Japan, the expansion towards the Asian countries is the next objective of a company. Further,
this report is enabling to provide the different concepts of supply chain management and the
difference which will be faced by the company in other countries or areas related to supply
chain management.
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LO1 Apply key supply chain concepts, principles and processes in an organisational
context
P1 Demonstrate how key supply chain concepts, principles and processes are applied
throughout the stages of resourcing, product design and development, logistics and
distribution
The supply chain is a process of providing the smooth working to the supply of raw material
and products in the organisation for further processing. The supply chain is the management
of the different phases of a cycle which helps in rotating and repeating the work to the
process. Supply chain management process is the cycle or process which includes different
phases determining the availability of raw materials and resourcing of these raw materials in
the organisation (Christopher, 2016). The Supply chain process determines the concept of
supply of raw materials in an effective manner to provide the due delivery time of the
products in an organisation for further processing. Supply chain management has different
concepts in the different processing phase of the organisation.
There is a lot of difference between the service and manufacturing sectors in the supply chain
management. The service sectors deliver the effective services to their customers or clients in
the different processes. The supply chain management process does not need or required to
be managed in the manner of different phases. The supply chain process management is
required in the manufacturing sectors in the most effective manner (Christopher, 2016). The
different phases of supply chain process are considered under the manufacturing unit. The
difference between both the sectors in supply chain management is of Inputs, Logistics,
Finished goods, and Optimization. These are the four major concepts which determine the
difference between the manufacturing unit and service sector in their supply chain process.
The service sectors do not have a physical input which does not even require logistics. The
finished products or goods are the invisible services which the service sector provides to the
customers. The supply chain works majorly in the speed of delivery and reducing cost. The
service sector has the difference in optimization which is basically the relationships and
information flow.
Supply chain management is the process in which the focus on reducing cost and delivering
the product in an effective manner with the supply of the products is done the management
including planning, organising and controlling the different phases or processing steps in the
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manner to provide effective results (Christopher, 2016). Supply chain management is the
management of the flow of goods and services which involves various stages in the
management of raw materials and work in progress. The supply chain management helps in
planning the different activities which are related to the inventory and finished goods and
provide the proper planning for efficient and effective results. The supply chain management
provides the companies or organisations a great planning of the raw materials and works in
progress for achieving the delivery and consumption task on time. Disney store which
manages the supply chain management in an effective manner within the production or
manufacturing team of the company (Monczka, et. al., 2015). The distinct products and items
of Disney store are to be supplied to the various part of Europe, North America, and Japan on
the basis of orders. This enhances the various stages efficiency and effective working of the
supply chain management. There are numerous approaches to supply chain management
which differs in every company as per the optimizations and operations.
The use of supply chain management in earning the competitive advantage can be the part of
lean supply chain management. The lean concepts and principles are the most commonly
used and effective for all the functional adjustments of the organisations. The focus of lean is
to enhance the quality and minimise the unnecessary stages in the processing of a finished
product (Monczka, et. al., 2015). The lean also focuses on providing the satisfaction to the
customers with what they want. The principles of lean are Just in time and Jidoka which are
the philosophy of lean supply chain management. The lean principles focus on providing the
quality products within the less time. The effectiveness and efficiency are both considered by
the lean management of supply chain. The major objective of the lean principles and supply
chain management is o reduce the unnecessary cost and improvement of the customer service
and products.
Just in time- The just in time is a principle which focuses on providing the customers with
the exact quantity of product in the exact time they want it. The objective is to match the
supply chain management with the just in time. This principle is effective and used by the
Disney Stores in an effective manner (Monczka, et. al., 2015). The just in time technique is
used in the Disney manufacturing units so s to provide quality of products within the exact
time customer wants.
Kaizen- Kaizen is a Japanese word which means continuous improvement. This is also a tool
which helps in making an organisation lean in its production. The lean management in
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Kaizen is to provide the continuous improvement in the functionality, production quality,
timing of the production and delivery. The focus of this is to make the effective supply chain
management process to deliver the effective process. In the Disney stores, this technique is
also used but only in the Japanese manufacturing units. This technique is focused to provide
the continuous improved products and quality within the maximum shortest time possible
(Hugos, 2018).
There are different key concepts, principles, and processes which are included in the supply
chain process. This is completely in the different aspect of learning the supply chain
management process. The supply chain process helps in getting the benefit of providing and
delivering the products on time. The key concepts and principles are applied to the very
common and effective stages of supply chain management process which includes-
Resourcing stage
The resourcing stage provides that the supply chain management could be effectively done if
the resource planning is continuously done. The resource stage includes the concept and
principle in the application manner if the proper planning of the resource in the effective and
efficient manner is done. The resource planning is important to provide an effective method
of understanding the resourcing stage (Hugos, 2018). To provide an effective working and
reduced cost the planning for resources used in the organisation must be done. The resourcing
planning and management could be the part of effective planning, organising, directing and
controlling the activities of supply chain process.
Obtaining the working capital and capital investment is also very important in the resourcing
stage of the supply chain management process. This stage needs to be developed with an
effective working capital and capital investment.
Production stage
Production stage of the supply chain management involves a very important application of
principles and processes. The relationship between the demand planning and production
scheduling is important to be considered in the production stage. The production stage
provides the production schedule which provides the complete information about the
production and the activities which are to be scheduled and performed in the production. The
loaning and schedules complement each other with the production stage completion in supply
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chain management (Hugos, 2018). In Disney store, the production stage is working in an
effective manner as the production planning and scheduling works effectively.
The production stage also inputs the principles of supply chain management process by
incorporating the project management techniques into the production process. This enhances
the working and production scheduling in an appropriate manner.
Logistics and distribution
The logistics and distribution are considered as the most important task or activities of the
supply chain management process in which the products and items are stored and distributed
in different stores around the world. Disney uses the principle of effective logistics and
distribution process by providing the computerised shipping, tracking and invoicing for the
effective logistics and distributions (Hugos, 2018). Cloud computing and new latest software
for management of inventory and real times production delivery are matched by Disney
stores.
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M1 Evaluate how integration of supply chain concepts, principles and processes
improve organisational efficiency.
Integration of supply chain management is one of the effective processes which helps in
providing the mixture and a compensation of the supply chain concepts, principles, and
processes to improve the organisational efficiency. The integrated process moves the process
in the manner to understand the concepts and principles of organisational supply chain
management. The implementation of the supply chain management requires analysis of the
whole supply chain. The starting with the integrating internal functions on the priority and
integration of the external suppliers through partnerships is also the part of implementation
(Schönsleben, 2016). The Supply chain concepts help in providing efficiency to the
organisation with an effective working. The supply chain is designed to provide the effective
working with improved efficiency. The organisational efficiency with the integration of
supply chain concepts, principles and processes is an effective combination by which the
principles, concepts are utilised by the organisation in an effective manner. The integration of
these three major aspects of supply chain provides a power of completing the activities and
achieving the milestones in the most profitable manner.
There are various supply chain objectives which are possible with the integration of the
supply chain management are reducing cost and improvement in the quality of supply chain,
reducing lead time and inventory or stock. The objective which is possible is also reducing
the lead time to market (Schönsleben, 2016). The increase in sales could be ensured with the
integration of supply chain. The improvement in the demand data forecasting is also one of
the important objectives which could be attained.
Supply chain concepts are related to the management of the chain and its process to enhance
the working and the timely delivery in an organisation. The manufacturing units of supply
chain introduce an impact of effective working in an organisation. The supply chain concepts
bonds and teams up with the principles and process. This bond and teaming help in attaining
the major goals of an organisation in an effective manner. The use of supply chain concepts
for the betterment is done with the help of its principles and processes. The organisation uses
the supply chain concepts with the effective principles which make it better understanding for
the employees if an organisation (Schönsleben, 2016).
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The process of the Disney store depends on the effective and improved structure of the
organisation. This is because it helps in attaining the principles and concepts in the clear
format. The process of the supply chain includes the activities of-
Planning- planning is an activity which assures that everything is available, every resource is
available and its allotted task is working in a particular structured manner. This sorts out the
different tasks and makes the allotment in the supply chain management (Wiengarten, et. al.,
2016). The planning makes the further task clear.
Procurement- Procurement is procuring the raw materials in an effective manner. The
procurement is done on the basis of further needs of raw material to the company
procurement increases the working of the company in the process of effectiveness with the
availability of the raw materials.
Production- The stage of putting the raw materials into production to form and produce the
complete production in an effective manner and within the time duration allotted. In this task,
the time and cost concept of the supply chain management will be used effectively.
Distribution- The distribution of the products to the various stores of Disney in different
countries and places is another important task which is to be achieved with the effective
management of supply chain (Wiengarten, et. al., 2016). This is done with the help of the
principle of Just in time of the supply chain process. This improves the distribution and
timely delivery which improves the organisational efficiency.
Customer interface- The customer interfaces with the products and services are the
important part which completes the supply chain management process. An effective and
efficient delivery and supply of the products and services to the customers makes them
satisfies which is the greatest achievement of an organisation.
The combination of the concepts, principles, and process of supply chin makes a stronger
impact on the organisational efficiency by improving it. The organisational efficiency with
the integration of supply chain concepts, principles and processes is an effective combination
by which the principles, concepts are utilised by the organisation in an effective manner.
The integration of supply chain management provides an effective working in an organisation
which deals with the huge production daily. To manage the operations and production in the
manner of ethical supply chain management is necessary. The knowledge of supply chain
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management in an organisation and the process is important to be understood so as to work in
an effective manner. The integrated supply chain management reduces the risk of failure or
errors (Wiengarten, et. al., 2016). The Disney stores are considered one of the effective
production management and supply management stores which helps in providing effective
operations to the company. With the integration process of the company, Disney stores get
the effective operating unit of the concepts, principles, and process for the improvement of
the organisational efficiency. The uses of integration in improvising and effective
organisational efficiency are required and assured in Disney stores.
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LO2 Evaluate the importance of effective supply chain management. (SCM)
P2 Evaluate the importance of effective SCM from the perspective of customers,
suppliers, distributors and retailers
Supply chain management is encompasses distinct activities regarding to planning, control
and execution for a product flow in the target market. Starting from acquirement of raw
material till to production and supply of final outcomes to the consumers this whole process
is covered in the supply chain management (Christopher, 2016). It is essential to manage and
maintain the supply chain management effectively to manage the value of product to the final
consumer. Supply chain management have a huge significance in the organisation and it is a
significance aspect which determines the success and failure of the organisation. Disney store
is mainly works for those people who are highly interested in the virtual life characters and it
is essential for the company to invent new products and categories related to the cartoon and
other fictional characters. It is required for the company to deliver its newly invented
products to its targeted customers by an effective way of supply and distribution. The supply
chain management contains the logistics department significantly under in its which helps to
the organisation for input and outputs of raw material and final outcomes to the targeted
audience. An effective logistics process can help to the organisation to enhance their reach
and accomplish demands of products at the right time and place to sustain the price of the
products. Supply chain management contains a huge significance for customers, suppliers,
distributors and retailers perspectives which are given below:
Significance of effective supply chain management for customers
It is a target market for which company works and it is essential for the company to develop
benefits for them. Use of logistic department and services are mainly comes in this section to
benefitted to customers. Importance of supply chain management is given below in points:
 Delivery on time: First of all, effective supply chain management has significance in
for delivery of a product on the right time (Wisner, et. al. 2014). It is essential to
deliver products at the right time to the customers which help to develop a positive
influence of the company. Disney store has used online distribution channel to sales
its products in the targeted market so it is essential for them to deliver products to
customers on the right time. In this case, effective use of logistic has significance for
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the delivery of the products to customers. Most of the companies are using this supply
chain management to deliver their products on the right time of delivery.
 Less waiting time: It is required for any organisation to decrease the waiting time for
the delivery of the product. An effective supply chain management analyses the
conditions to deliver product in minimum delivery time (Hugos, 2018). Different
situations work as a barrier to the product delivery which is analysed by the supply
chain manager which helps to decrease the waiting time for the customers. Effective
delivery of the product on right time helps to enhance customer’s loyalty in the
company. It is essential to minimise the waiting time for the consumers and end users
to enhance the use and significance of the product to the customer.
 Delivery of right product: Organisations which are working in a large market and
with a large range of product from online sales method, it is required for them to
maintain the supply chain management effectively. Different products have to be
delivered in a day and it is essential for the company to deliver the right product to
right customers. a wide range is contained by the Disney store and it is essential for
the company to deliver the right product to their customers (Rushton, et. al. 2014).
Effective supply chain management classifies the products into the geographical
segments where from orders are generated and have to be placed. It helps to get a
right product which is ordered by the customers. It helps to the customers to resolve
their purpose by effective delivery of the products and also develops their trust in the
organisation which is required for both parties.
 Security of product: Safety is a prime factor in the supply chain management and it
is possible by the use of effective supply chain management in the product delivery.
Toys, mugs and other different products are produced by Disney store which is having
huge needs for safety (Johnson, 2014). Security and safety of products are also
significant for the customers also to get an ordered product in superb condition as they
need or wants. Packaging is also covered in the supply chain management which is
based on the type of product. Breakable products are packed into different packaging
which eliminates the risk of any type of damage to the product which ensures that
customer will get satisfied by the product delivery.
The significance of effective supply chain management for suppliers
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Disney stores have a wide range of products which are manufactured by different suppliers.
Disney stores are a retail company so it is essential for the company to manage their input
suppliers effectively (Coyle, et. al. 2016). Online and offline both distribution methods are
used by the company to sell its products in the targeted market. Its stores are located are in
worldwide countries so the significance of effective supply chain management is enhanced
due to pressure to manage the delivery of products into different countries. The significance
of effective supply chain management for suppliers is given below:
 Declines pressure from suppliers: Effective supply chain management decreases the
pressure from the suppliers. Effective SCM is liked with the stock management which
helps to manage and maintain a minimum stock level of each product. It is essential to
provide an effective time to suppliers to manufacture products. Suppliers can maintain
quality in the manufactured products and other raw material by the effective supply
chain management used by the Disney store. It is essential to provide an effective
time to supply products to suppliers due to managing quality in the material and
products which has to be supplied by the suppliers.
 A proper list of needed products: Use of effective supply chain management from
an organisation helps to the supplier to get a proper list of product with the quantity
which has to be supplied by the suppliers to retailers (Beske, et. al. 2014). Disney
store is a retailer company and it is essential for them to provide a proper list with a
number of products required to their suppliers. It is also significant from supplier’s
perspective that they supply the entire required product in one delivery to manage
their accounts and truncations effectively. The company should ensure that
requirements are effectively mentioned in the quotations made by them to suppliers to
get all the products with proper quantity in the predetermined delivery time.
 Develop better relationships with supplier and company: It is essential for a
company and suppliers to develop a better relationship with them. Effective supply
chain management helps to develop a better relationship in the both. In the
perspective of suppliers effective SCM has a huge significance to develop better
relationships with the client companies, as Disney Store is a retailer company and it is
essential for them to get the product at right time by their suppliers. Effective SCM
provides enough time to the suppliers to supply desired products to the company
which helps them to develop a reliance on Retailer Company on the suppliers. It
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develops trust and reliability in the both which ensures a better future of suppliers
with the retailer company.
 Manage profitability: Effective supply chain management helps to the suppliers to
manage profitability in their transactions. Logistics and operational cost are reduced
by the effective SCM which helps to the suppliers to enhance their profitability to
manufacture and delivery of the products to the retailers (Bai, et. al. 2012). Designs
are developed by Disney store on the basis of which its supplier manufacturing units
work to develop products accordingly. New designs take time to get manufactured by
its suppliers and in this supply chain management effectively works.
The significance of effective supply chain management for distributors
Distributors play a significant role in the distribution of products in distinct geographical
conditions. Online and offline both type of distribution methods has a need of distributor in
the production. Distributors are the stockist which contains a stock of wide range of products
to provide its benefit to retailers. Distributors are the medium to supply products in the retail
market so it is an important part of retail organisations. Importance of effective supply chain
management is given below for distributors perspectives:
 Provide direction for work: Effective supply chain management provides a direction
to distributors to supply their products. Market demands are analysed by the Disney
Retailers according to them distributor’s works. Effective supply chain management
supports to analysed demands from different geographical market segments to the
company and as well as to distributors. By this, distributors and the company can
analyse the market demands (Zailani, et. al. 2012). Both of them can improve their
work in that market where they are losing their demands. It is required to maintain
market demands from all existing markets which help the company and as well as to
distributor to keep price and value of the product in the targeted market.
 Develop rotations of product: Effective supply chain management supports to
distributors to maintain rotation of products in the market. Distributors are having
control of the market in which they are working. Demands and supplies are mainly
controlled by eth distributors in which supply chain management works either it’s,
they are unable to manage and control the demands of the products. It is essential for
the distributors of the Disney stores to manage demands and supplies of the market
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which can help them to manage effective product prices for customers and the
company.
 The minimum level of stock: Distributors are having a huge need to manage
standards at the stock level which can help them to manage demands of that market
which are under their control (Fahimnia, et. al. 2015.). Supply chain management
effectively works in this area to manage and control the wide range of products to
manage the supply of the products. Online products deliveries are directly made by
the distributors and either these demands of offline retailers are also accomplished by
the distributors of the product developed by the Disney store.
The significance of effective supply chain management for retailers
Retailers are the last part of the supply chain management of the Disney stores. The company
has used both online and offline methods for the distribution of the products in the targeted
market. An effective supply chain management is the need of retailer also which helps them
to avoid rigorous changes in their strategies and activities. Some of the points are given
below to evaluate the significance of effective supply chain management for retailers:
 Decline operational cost: Effective supply chain management forces to use the cost-
effective medium in logistics which ensures the limited cost of operations in the
supply of the products. Disney Stores is a retailer company and it has its own stores in
the offline market and it is essential for the company to use effective sources and
mediums to supply their products in the targeted market. Effective SCM forces to
develop a network by which they can easily develop their grip on a wide area of the
market to supply their products via their network.
 Decline supply chain cost: Use of effective sources and mediums of logistics helps to
decline the supply chain management cost for the retailers. It provides an assurance of
profitability retailers in logistics (Mangan, et. al. 2016). Most of the companies which
are working at a higher level are using effective supply chain management to ensure
the cost supply chain under control.
 Avoid the risk product shortage: It is a most significant thing for the retailers and
they want to avoid these situations which create a negative effect on their customers.
Regular availability of the products helps to the company and as well as to the
retailers minimise the risk product unavailability and shortage. It makes a negative
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effect on the customers and as well as on the brand image. It compels customers to
move or use another retailer to buy that specific product in which they are interested.
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M2 Critically evaluate the importance of physical, information and financial flow
management within the supply chain.
According to Barney (2012), physical flow is related to the product and material which has to
be supplied by the company to the targeted customers. This is the key part of the supply chain
management for which it is designed and adopted by the organisation. Physical flow is
related to the material and products flow from the suppliers and to the targeted market and
customers. Generally, an organisation contains a flow of product from the company to
customers but in some case, it is reversible when the customer is not satisfied with the
delivered product. It is essential to manage the flow of product and focus to develop an only
one-way flow to keep the profitability higher. The flow of information is based on two-way
channels in which product inquiry has generated by eth customers on whom company works.
Quantity, type of product, purchase orders are sent by customers to the retailer and company
in whom they work to accomplish demands (Barney, 2012). Two directional information
flows is used in the supply chain management in which flow of information is developed in
between company and customers. Invoice number, delivery status, quotations are developed
and send by the company to customers to provide assurance about their demanded or
purchased product.
Financial flow is the final factor of supply chain management which is also developed in
between the company and customers. Final delivery of the product and approval of customer
on the product creates this flow from the customer side. It is essential to manage the company
which helps the company to be in the profitable situation. The financial transfer is made at
the end of the purchase process by the end of the customers (Barney, 2012). Basically, it is
one-way transaction from customers to the company but the sometimes company has to
refund amount in the case when the customer does not satisfied with the product. It is
essential to manage the flow of all these factors in the supply chain management in the right
direction to ensure the organisational success in the attainment of goals and objectives. Flow
management within the supply chain is related to the physical, logistical and financial flows.
There is a relationship which is maintained on the basis of intimacy and transparency. This
whole task or activity is big for the companies to manage as there are huge risks involved in
these activities. The resource planning is important to provide an effective method of
understanding the resourcing stage. To provide an effective working and reduced cost the
planning for resources used in the organisation must be done.
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LO3 Evaluate the interrelationships between supply chain and other areas of an
organisation.
P3 Evaluate the cross-functional and integrated approach of SCM with other areas of
an organisation
Cross-functional and integrated approaches are used in the supply chain management which
helps to enhance its effect on the organisation. Supply chain management effects on the
whole organisation and on the distinct departments. Explanation of both approaches is given
below:
Cross-functional approach to supply chain management: Cross-functional approach is
based on the use of different people as a team to attain those objectives which are never
attained by employees individually (Brandenburg, et. al. 2014). The cross-functional
approach is based on the participation of individuals belongs to the different departments of
the organisation to come together to attain a goal which is not attained by them. New product
development and its success is the task for the organisation for which this cross-functional
approach can be used by the company. Marketing, suppliers, product development, research
and development, sales, accounts, and finance etc. are the different teams which works in an
organisation and which are essential to develop and design a new product. Cross-functional
approach develops a new team which works to reduce time, better attainment of
organisational goals, cross-boundary problems and task, professional development of
individuals. This approach is effective to use in the organisation to minimise the problems
occurs in the supply chain management. Operational cost, time, logistic related problems can
be resolved by the cross-functional approach.
Evaluation of cross-functional approach of supply chain management with other areas is
given below:
 Marketing: Disney Stores is a retailer organisation and it has a huge need for
marketing activities to identify the market demands. Issues linked to the supply chain
management can effectively resolve the information from the marketing team. The
marketing team can provide information about those markets which have regular and
irregular demands of products. According to this changes can be developed in the
network of supply chain management by which company can be more effective in
product supply. A distinct type of market information can be provided by the
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marketing team which can enhance the values of supply chain management for the
organisation.
 Distribution: It is the key player in the supply chain management which works to
deliver products. Disney store has used both online and offline concept of sales in
which distribution team has a significant task and responsibility, distribution of
products from distributors to retailers and distributors to customers in the higher
priorities of this team. Use of this team in this approach helps to analyse those factors
which are creating a problem in the effective supply chain management development
in the organisation. Use of new logistics medium to enhance the delivery in the
different markets can be analysed by the distribution team. Basically, supplies to
customers are maintained by this department souse of this cross-functional approach
is effective.
 Sales: Sales department mainly works in the offline stores of the company to attend
the customers. In the Disney Stores, some of the customers want home delivery of
products in which supply chain management is needed. The cross-functional approach
to supply chain management is effective to create significant effects on the sales
departments. It helps to analyse the latest trends of the market which are effecting on
the customer behaviors (Walker and Jones, 2012). Change in sales techniques can be
developed by the cross-functional approach to supply chain management.
 Accounts and finance: The Cross-functional approach to supply chain management
effects on the accounts and finance also. New logistics has need of approval of
finance and accounts department. They will also analyse the profitability of change in
the organisation which can help the company to get a better deal with this approach.
 Purchase: it is the most significant department which has a huge relevancy with the
supply chain management. The cross-functional approach to supply chain
management effects on the purchasing department also. Disney store is a retailer
company and this approach is effective works to make changes in the purchase of
products.
An integrated approach to supply chain management:
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Figure 1: Integrated supply chain
Source: Integrated supply chain, 2013
This approach develops the integration of different stakeholders in the supply chain
management network which helps to develop final outcome effectively. Integration of
different teams is used in the approach to developing an effective supply chain management
in the organisation. It is essential for a retail company to develop an effective supply chain
management by the integration of suppliers, finance, IT, logistics, manufacturing, purchasing,
operations, distributors and warehouse of the organisation. This approach of supply chain
management is effective to optimise performance and supply chain functions in an organised
manner. Uses of different teams in the integration support to develop performance to attain
objectives by the supply chain management. Different problems and errors are engaged with
the supply chain which declines its effectiveness to attain organisational objectives. The
integrated approach works on the problems and issues to resolve them and enhance the
fluency of supply chain management to manage input and output supply on right time.
Evaluation of an integrated approach to supply chain management with other areas is given
below:
 Purchase: Integration of different departments in the supply chain management helps
to develop a better process (Raihan and Krishnan, 2014). This approach is the effect
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on the purchasing department to manage a standard level in the stock which can help
to the organisation to accomplish the market needs. Disney Stores works in the offline
and online market and it is essential for the company to maintain a standard stock of
wide range of products. This approach helps them to develop a fast process for the
purchase of products from suppliers which can help them to avoid the shortage of
products in the company.
 Sales: It is essential for the company to manage their sales to maintain profitability in
their business operations. Integrated supply chain management helps them to analyse
their loopholes in supplies and sales by which they can enhance their sales.
Integration of different teams in the supply chain management creates a significant
positive effect on the company which helps to enhance the sales. According to analyse
loopholes in the supply chain management by the opinion of different teams sales
team have to develop significant changes in their activities.
 Information technology: Online distribution method is used by the Disney store
which has a huge need for information technology team. Status of product, website
etc. is managed and controlled by the information technology department. Integrated
supply chain management helps to the company to develop some effective changes in
the IT department also.
 Marketing: Integrated supply chain management creates a significant effect and
change in the marketing activities of the company (Tayur, et. al. 2012). Integration
helps to analyse the loopholes of the company in the sales according to which
marketing team has to work in the company. The market team should enhance their
activities in those areas which have fewer sales of products which can help them to
manage profitability.
 Logistics: It is the significant department which is also integrated into the supply
chain management. The integrated approach to supply chain management helps to
analyse the problems related to logistic which is creating ineffectiveness in the
supplies of the products.
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M3 Examine the implications of interrelationships between the supply chain and other
functional areas using theories, concepts and / or models.
Supply chain and other functional and operational areas in the organisations are interrelated
because they provide an immense working and effectiveness towards the organisational
efficiency. The functions of the company get accurate structure and performance if they are
interrelated with the other functional areas of an organisation (Sanderson, et. al., 2015).
Supply chain management process is the cycle or process which includes different phases
determining the availability of raw materials and resourcing of these raw materials in the
organisation. The supply chain management process does not need or required to be managed
in the manner of different phases. The difference between both the sectors in supply chain
management is of Inputs, Logistics, Finished goods, and Optimization. The use of various
concepts, theories, and models which are related to the supply chain management process are
considered to show the importance of SCM in the company. Supply chain management is the
management of the flow of goods and services which involves various stages in the
management of raw materials and work in progress. The supply chain management provides
the companies or organisations a great planning of the raw materials and works in progress
for achieving the delivery and consumption task on time.
Disney store is to be supplied to the various parts of Europe, North America and Japan on the
basis of orders (Sanderson, et. al., 2015). Disney uses the principle of effective logistics and
distribution process by providing the computerised shipping, tracking and invoicing for the
effective logistics and distributions. Various models and theories are used by Disney stores in
different parts of the world. These theories and models are based on the availability of models
and theories of Disney. The theories which Disney focuses on improving the
interrelationships between the supply chain and other functions of an organisation are based
on the basic and necessary functions of an organisation. Disney focuses on its production and
quality improvement in its operations which are shown in the provided case.
Theories about procurement and supply chain management
Procurement refers to the action of acquiring or procuring something. The organisations work
in the procurement of raw materials and items in an organisation to provide the effective and
protective working. The organisational working increases the procurement activity with the
different perspectives which are a traditionalist, relabeling, unionist and intersections. The
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traditionalist perspective of this theory sees the Supply chain management as the strategic
aspect which is basically concerned with the supplier development and building of the
together supply relationships. The other perspective of Relabeling is concerned with that in
many organisation procurements is evolving into the supply chain management. It has
become the part of SCM. The supplier management is interrelated with the procurement and
supply chain management. These both perspectives of the theory of procurement and supply
chain management are based on the supplier’s relationship.
Figure- 1
Source- Sanderson et. al. (2015)
The procurement and supply chain management also provides the theoretical perspective of
Unionist and Intersectionist. In these, the perspective of both the above theories is based on
improving and maintaining the relationships between the organisational upstream and
downstream (Sanderson, et. al., 2015). These four perspectives of procurement and supply
chain management theory are based on the attainment of different theories and variables on
the organisational efficiency.
The theory of relationship between supply chain integration and Product quality
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The product quality is refers to the value of the product against its prices. The product quality
is measured by the consumers by using the product and matching their satisfaction level in an
organisation. The Disney stores focus on the product quality of company by measuring the
fitness for use of the products in the company. To meet the customer needs and wants in the
organisation with the help of enhancement of product quality are important in Disney stores.
The provided theory of the product quality and supply chain management helps in
maintaining the product and its quality to its maximum (Hazen, et. al., 2014). The product
quality is provided in the effective manner and helps in getting the quality products.
Figure- 2
Source- Hazen, et. al., (2014)
There are various models of supply chain management which affects the working and
operations of the company. The supply chain management has the different models which
describes the strategic models. The total quality management, systems thinking and cost
analysing model and agility of the organisational company. There are also operational models
of supply chain management which focus on the operational areas of the organisation. These
are basically the operational and interrelations between different working areas of the
organisation (Hazen, et. al., 2014). This also focuses on the relationship of the operational
and functional relations of the organisation. The making of right decisions in the operational
framework of an organisation is important. The models of supply chain management also
include the network models of supply chain management. The behavioural models of supply
chain management are based on the human resources behavioural aspects of the company.
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The supply chain management and the human resources in the organisation are effectively
done.
LO4 Evaluate a supply chain strategy within an organisation and present proposals for
improvement.
P4 Evaluate a supply chain strategy within an organisation and present proposals for its
improvement.
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28

29

30

M4 Critically evaluate a supply chain strategy within an organisation and present
proposals for its improvement.
31

32

33

D2 Justify and recommend improvements of a supply chain strategy based on the
critical evaluation.
Briefing Document
The supply chain management helps in assessing the various effective organisational
working. The supply chain management could be improved with proper strategies. There is a
need for planning strategic solutions as well. Supply chain management could be done
effectively with the consideration of need of continuous improvements. The strategies and
their improvement proposals are provided in the below briefing document.
Strategy- 1- Demand Driven planning and business operating model
The strategy could be demand-driven planning and business operating model. The
organisation Disney stores could consider this strategy for effective supply chain
management. The use of contingency planning tools ensures a complete view of this strategy.
There is an effective response to risks and pricing and promotions are adjusted effectively
and properly in this strategy. This strategy helps in driving revenue growth as well as
leverage opportunities. This strategy also helps in lower down the risks or challenges occurs
to the organisation. The strategy could be used by cloud technology in almost every
organisation.
Strategy -2- Building of adaptive and agile supply chain with rapid planning
The strategy of the building of adaptive and agile supply chain with rapid planning and
execution is considered in this organisation. The shaping of demand and risks could be
assured with this strategy. The dynamic supply chain is used in this strategy to respond
quickly to challenges which the organisation faces. This strategy results in providing the
Better visibility to the organisation for future plans and operations. This also helps in
enhancement of collaboration and predictable supply in an organisation. The strategy helps in
managing the operations and productions of manufacturing, transportation, warehousing, and
distribution. This clears the distribution among the company related to the strategical
performance of the organisation.
Strategy- 3- Optimize product designs and product management to enhance profitable
innovation
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The strategy which could be used in the supply chain management is to optimize product
designs and product management to enhance the profitable innovation. This strategy could be
ensured correct and effective if the right cost is measured and considered, the right place
could be considered by the organisation and the right time is also considered by the company.
This strategy provides the product innovation which helps in managing the competitive
advantage to the organisation. The Management of suppliers and technologies is also done in
the organisation for an effective and profitable innovation in an organisation.
Strategy- 4- Alignment of supply chain management by integrating sales and operations
planning
This strategy helps in aligning the supply chain by integrating sales and operating planning.
This strategy helps in coordination among sales and effective manufacturing and distribution
in the organisation. This strategy also helps in integrates financial strategic budgeting. The
strategy provides an effective demand and supply which helps the organisation in forecasting
the future of an organisation. The risk in an organisation and management of the operational
functions of an organisation are considered. The performance s integrated into the
organisation with the help of this strategy.
Strategy- 5- Sustainability into supply chain operations
The strategy of sustainability into supply chain operations helps in managing the continuous
improvement in an organisation. The management of People, Profit, and Planet in the
organisation ensures to make the operations successful and implement in an organisation in
an effective manner. The reduction of carbon inefficiencies and in managing the
organisational efficiencies could be delighted with this strategy the results of this strategy are
effective as well. This strategy of the organisation helps in minimising the energy
consumption and maintaining the optimisation of travel and transportation. The effective
working and operations in the organisation help in managing the sustainability into the supply
chain management operations. This also helps in increasing the brand image of the company
as well as customer satisfaction.
Strategy- 6- Ensures reliable and predictable supply
The strategy of ensuring reliable and predictable supply is important and effective in an
organisation. The strategy provides continuous improvement in the organisation among its
35

operational activities. This includes some most important operational excellence strategies
and some cost business in the organisation. The wrong place and time provide the loopholes
in an organisation which it provides the effective working of the operations. The strategy
results in supply shortfalls which loses the effectiveness of an organisation. The digital
manufacturing thread could be ensured with Oracle and cloud infrastructure.
The critical evaluation of supply chain management strategies
The above-provided supply chain management is effective strategies. According to Jacobs et.
al. (2014), Some positive aspects of the supply chain management strategies are that they
provide continuous improvement. The efficiency is improved in an organisation. The
organisational operations are balanced. Their work becomes effective in planning future
organisation goals and objectives.
On the other hand, Stadtler (2015), Some negative aspects of the supply chain management
are that there are enhanced risks. The cost incurred may be huge. These are time-consuming
strategies and their alternative solutions could be used to maximize efficiency instead of these
strategies.
The supply chain improvement could be considered by the organisation in an effective
manner by providing the proposals for improvement. This could be improved by
understanding business strategy. The development of implementation plan could be
considered by organisation for effective working. The development of considerations and
assessment could be used for extended supply chain is also used for improvement.
The performance management in an organisation could be considered for the companies are
to be managed for the improvement in supply chain management. The cost could be revised
so that the cost incurred could be bearded by the organisation. There is a need for proper
communication in an organisation. The consideration of the organisational challenges in the
organisation could be done.
The organisational benefit and controlling power provide the different methods of supply
chain management. The provided information about the company is based on the effective
working of the proper planning of the store and the management of store is considered
effective. With the use of proper management, Disney has a proper supply chain management
and the working of the company is effective as well.
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37

Conclusion
The above report on the supply chain management provides an effective working of the
operations need in the organisation. The organisational benefit and controlling power provide
the different methods of supply chain management. The supply chain management includes
an effective working and less time and cost consuming activities which enables the company
uses in managing the other operational activities within that cost. The influential strategies,
theories, and models of the company help in attaining the best results in the organisations.
The selected company Disney stores have an effective working over its production and
supply chain management. The supply chain management helps in distributing the work and
logistics and production working in the manner to provide effective working. The Disney
stores are planning to expand their business in different other countries also where they need
to manage their supply chain managed according to the various strategically theories and
models which are discussed in the above report. The report helps in concluding that Disney
stores are working on the effective supply chain management in the existing parts of the
world where it has set up but on the other hand there could be challenges in the management
of the supply chain. The provided information about the company is based on the effective
working of the proper planning of the store and the management of store is considered
effective. With the use of proper management, Disney has a proper supply chain management
and the working of the company is effective as well. There is various strategical discussion
about the supply chain management in the organisation such as Disney stores and the
improvement in the supply chain management for future. The improvement in the supply
chain management strategies which could help in improving the organisational efficiency and
manages the challenges which could be faced by Disney stores in different parts of the world
during its expansion.
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