Supply Chain Management assignment : Marks and Spencer
Added on 2019-12-03
9 Pages3438 Words191 Views
Part 1Please provide a description of the background with references to relevant literature(250 words)Supply chain management is regarded as the oversight of information, material andoverall finance which moves from supplier to manufacturer of enterprise. It takes intoconsideration proper coordination along with integration of flow both within and among thecompanies. The main reason behind carrying out this study is to know the overall impact ofsustainable supply chain management practices on market performance of company whereMarks and Spencer has been chosen as one of the organization which operates in retail sectorand well known in the market for range of products it offers to its target market (Christopher,Peck and Towill, 2006). One of the main objective of effective supply chain managementsystem is to reduce inventory and it directly assist in efficient utilization of key resources ofthe firm. In the modern era every organization has adopted the process of managing supplychain so that overall productivity of the business can be enhanced easily. In short it allowsbusiness to carry out the production process in more effective manner and has positive impacton brand image also.One of the major difference between supply chain management andsustainable supply chain management is that supply chain is the flow of goods and services inand outside the organization whereas sustainable supply chain flow of good and services insuch a manner that less harm is created to environment. This can be done by approaching thesuppliers and consulting them to use more sustainable raw materials. Supply chain of any organization takes into consideration key intermediaries whichare supplier, manufacturer, retailer, wholesaler, consumer etc. All these play significant rolein the supply chain of enterprise. Further, ultimate objective of every business is to deliverproducts to its target market in short period of time so that customers may not have to waitfor longer period of time. Therefore, adoption of supply chain management has become mustfor every business and through this business can easily deal with the range of challengespresent in the business environment (Green Jr, McGaughey and Casey, 2006). Moreover,competition level in every market is rising at faster pace due to which corrective actions aretaken by every enterprise so that commodity offered can reach to customer in short period oftime. Supply chain management relies on three main goals which are to reduce inventory, toenhance the speed of supplying products and increasing the level of revenue by meetingcustomers demand in most efficient manner. Through this technique it is possible for businessto easily meet with the changing need and requirement of target market in the modern era.
Part 2Literature to support background setting and positioning of further requirements forresearch.Impact of supply chain management on organizational productivityAs per view of Srivastava, (2010) supply chain management is regarded as one of theeffective way for business in order to perform better in the competitive market. It allowsbusiness to respond towards the changing need and requirement of target market in efficientmanner. Further, it is the one of the main objective of every business to perform efficiently inthe market where ample of opportunities are present and this can be accomplished if higherefforts are applied by management in providing range of products to target market on timeand in appropriate manner. In short technique of managing supply chain has positive impacton the productivity of business and it becomes easy for business to gain competitiveadvantage which is regarded as one of the main objective of business behind carrying outoperations in the market. Further, it supports in maximizing value linked with target marketand assist in accomplishment of desired aim along with objectives. However Kleindorfer,Singhal and Wassenhove, 2012 argued that management of every business has started to takeinitiative for effective management of supply chain and in short it has boosted performance ofcompany in the market. Main motive behind adoption of this concept is to deliver properproducts to target market as per their expectation level and this enhances overall satisfactionlevel of customers which is must for every business in the modern era. Apart from this, when customers are offered products on time and as per their requirementand it leads to rise in level of brand loyalty where business can easily survive in thecompetitive market for longer period of time (Altay and Green III, 2014). Sector like retail isgetting competitive day by day due to which every business has started to search for newways through which it is possible to enhance productivity of the business in the market. Inshort competition is not present in between the company but it is among supply chain ofbusiness. Companies who are capable enough of managing supply chain are able to deliverproducts to their target market on time and this has supported in enhancing their satisfactionlevel. As per view of Vachon and Klassen, 2014 it is regarded as the key to build sustainable
competitive advantage and has enhanced internal capability of the business to deliverproducts to customers on time and as per their actual requirement. Benefits of managing supply chain to companiesAccording to Berkes, (2010) supply chain management provides large number of benefits tobusiness. Securing access to the main raw materials, supplies and component is regarded asone of the main advantage of supply chain management as through this businesses can easilynegotiate with its suppliers on long term basis and this also assist in saving overall cost.Further, supply chain management allows business to save cost of obtaining supplies andwith the help of this procurement cost can be eliminated which is fruitful for business inevery possible manner. Moreover, it is ultimate objective of every business to save overallcost which is only possible when entire supply chain is managed in appropriate manner andin turn it is beneficial for business in every possible manner. However Zu, Fredendall andDouglas, (2011) argued that quality is regarded as one of the main issue faced by business inthe competitive market and to enhance quality level of products supply chain managementpractice is beneficial and through this it is ensured that quality standards adopted are as perexpectation level of the target market. Rise in level of customer satisfaction is one of themain advantage of supply chain management practice where products are delivered tocustomers on time keeping in view overall expectations of target market and this leads tofavorable outcomes for business in the competitive era. SCM allows companies especiallythose operating in retail sector to better adopt and meet demand of target market in mostefficient manner. It assists in reducing the level of inventory and enhances inventory turnsacross the network which can reduce overall cost associated with the business. Further, company like Marks and Spencer operating in retail sector has undertaken theconcept of supply chain management through which business is able to build healthierrelationship with its trading partners and time period required for delivering the products totarget market directly reduces. Therefore, in this way practice of supply chain managementenhances organizational performance and leads to accomplishment of major goals of thebusiness (Auramo, Kauremaa and Tanskanen, 2013) No doubt benefits of supply chainmanagement practices are present in large amount but it depends on every organization theways adopted for management of supply chain and in case if its practices are ineffective thenit can have adverse impact on business performance. Link between supply chain management and organizational performanceTheir exist direct relationship between organizational performance and supply chainmanagement as when larger efforts are applied by company in managing its entire supply
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