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Strategies for Supply Chain Management - Doc

   

Added on  2021-02-18

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Strategies for Supply ChainManagement.

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Role of supply chain management in the organization................................................................1Importance of SCM......................................................................................................................2Supply chain management strategies...........................................................................................2Theories of supply chain management........................................................................................3Trends and challenges in supply chain management process......................................................4Impact of supply chain management on Nestle...........................................................................5REFERENCES:...............................................................................................................................7

INTRODUCTIONSupply chain management (SCM) can be defined as planning and execution of flow ofgoods and services in order to manage inventory and producing high quality products to gaincompetitive advantage. Nestle company is being taken for the study, it is the popular foodprocessing firm which is known for its integrity and fairness in operations. Purpose of businessis to enhance quality of life by providing healthier products to consumers. Present report willcritically analyse supply chain management in the firm. It will describe role of SCM and itsimportance for organisation. Furthermore, examples will be given to demonstrate the extent towhich SCM can support the firm in gaining competitive advantage. MAIN BODYRole of supply chain management in the organizationSupply chain management plays the role of customer service manager as it supportsNestle company in improving consumer service activities in business. Its major role is tomanage flow of goods and services hence consumers can get high quality products on timewhich supports the firm in serving buyers as well and retaining them in the organisation forlonger duration. SCM department continuously work to resolve quarries of consumers so thatcustomer like its services and retain with firm. It works to reduce production cost of business unit. Nestle is popular for its high qualityfood products, entity always ensure to use quality raw material that can support in improvingquality of end products. It minimises changes of error in final products hence production cost ofthe organisation can get minimised easily. Nestle uses advance machinery in production unitsand buy material from the good suppliers which makes the firm unique from other brands. Thishas resulted in minimising number of failed items and raises efficiency of production to greatextent. Supply chain management works as supportive element as it improves financial positonof business unit. Use of quality raw material aids in improving quality of products andconsumers like to pay more for such kind of quality materials. This satisfy consumers and helpthe Nestle in raising its profitability to great extent. Furthermore, SCM activities ensure that allresources of the organisation are being used in effective manner. Supply chain management ofNestle ensure that its machineries, financial resources are used in proper manner so that wastage1

can be minimised. It increases value of the firm and company has become able to deliver qualityfood materials to its wide range of customers. Importance of SCMSupply chain management is considered as integral part in business which always supportorganisation in gaining competitive advantage and creating strong image in the mind ofconsumers. It is beneficial in boosting customer service in Nestle. By managing flow of goodsand services Nestle can meet expectation of buyers and can deliver quality material to them. Itensures that all end users het items on time and they get great after sales service. It raises theirsatisfaction level and they spend more money in the business. Furthermore, SCM is beneficialfor the firm in reducing purchasing cost. Nestle is highly depended upon the supply chainactivities, when companies depend more on limited suppliers then they have to pay high cost forraw material to suppliers. But Nestle has built strong relationship with many suppliers hence ithas opportunity to switch supplier if it is not satisfied with its raw material. Nestle gets advantage from SCM activities because it creates value for business, as it isbeneficial in reducing cost of operations which results in improving the production efficiency. Itraises consumer satisfaction hence supports in increasing cash flow in the firm which aids Nestlein gaining competitive advantage in market. On time delivery is another benefit of SCM toNestle. Consumers always want fast delivery of their products, Nestle ensure to have rightquality material all the time and whenever consumer demand for the item it delivers it on time.This creates positive brand image of Nestle in the mind of end users and help in reducingproblems like bottlenecks. Nestle always take care of thing that people get right products withinpromised time. That is the reason that Nestle has wide range of customer across the world andthey are highly satisfied with the organisation. Supply chain management strategiesThere are various supply chain management strategies which is adopted by Nestle inMalta is that company has adopted an adaptive as well as agile supply chain. With the help ofthis strategy company is able to understand as well as shape the demand and the risk. Thisstrategy has helped company to adapt its supply chain with respect to changing marketing eventsand opportunities. Also, Nestle is able to make a dynamic planning and continuously improvingits operations which has ensured company's responsive agility in order to meet the changingdemand. Nestle has also adopted a demand driven planning and has also adopted business2

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