Supply Chain Management: Trends and Analysis

This essay analyzes the current trends in supply chain management and their impact on modern organizations. It discusses the advantages of proper supply chain management and the six key trends that have affected the industry. The essay also covers the importance of inventory management, resource allocation, and collaboration with stakeholders.

Running head: SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Name of the Student
Name of the University
Author Note

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Introduction
As opined by Brandenburg and Rebs (2015), supply chain management is based on a
broad range of activities that are performed for the purpose of planning, controlling and
executing the flow of different products. The process is mainly based on the ways by which
raw materials are acquired and production is completed with the help of proper distribution.
The supply chain process that ends with the delivery of products to the consumers is
considered to be cost-effective and streamlined in nature.
As discussed by Genovese et al. (2017), the raw materials that are acquired by the
organizations can be transformed into final products with the help of efficient supply chain
management. The supply side based activities that are performed by different organizations
are able to increase the value of customers and help them to develop a competitive advantage
as well. Supply chain management mainly represents the efforts that are undertaken by the
suppliers for the purpose of developing and implementing the supply chains which are
efficient and economical.
The essay will be based on the new trends that have started in the process of proper
supply chain management in the modern organizations. The advantage that is gained by the
organizations with the help of proper management of the supply chain will be analysed in the
essay in detail.
Analysis of current trends in supply chain management
According to Gunasekaran et al. (2017), supply chain management has a huge impact
on the proper operations of different business organizations. The correct levels of quantity
and right types of products can be provided to the customers with the help of effective supply
chain management related activities. The timely distribution process of goods has a major

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impact on the bottom line that is developed. The efficiency levels of warehouses, plants and
vehicles related to transportation can be improved with the help of proper management of the
supply chain. Timely delivery of products with the help of efficient supply chain is also
helpful in ensuring that cash flow is high and different organizational operations can be
conducted effectively (Ho et al., 2015).
As discussed by Kirchoff, Tate and Mollenkopf (2016), supply chain management is
considered to be an integral part of business operations in various industries. The most
important factors that are related to proper supply chain are,
Decrease of the purchasing costs – Quick distribution of the costly products are
preferred by the organizations as they aim at reducing the costs that are based on the levels of
inventory.
Decrease in the production costs – The reliable supply chain is able to deliver
different materials that are required for the assembly plants. The costs that can occur based on
any type of delay is considered to be a major part of the efficiency of supply chain (Hsu, Tan
& Mohamad Zailani, 2016).
Right quality and quantity – The services that are offered to the consumers are
considered to be important factors which are able to affect the organizational operations. The
quality as well as quantity of the products are considered to be important for the development
of a proper supply chain (Kozlenkova et al., 2015).
Delivery time – The time that is required for the proper delivery of products is
affected by the supply chain based activities. The product mix that is offered to the customers
are based on the ways by which supply chain is developed. The reliability of a supply chain is

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considered to be significant for the ways by which different bottlenecks can be avoided
(Lambert & Enz, 2017).
Services – The services which an organization provides to the customers after they
have purchased the products are helpful in the development of a competitive advantage in the
industry in which it operates.
As discussed by Mangan, Lalwani and Lalwani (2016), the effective supply chain can
help the organization to diagnose different disruptions and problems. The quick and efficient
movement is the most significant part of the supply chain management based process. The
levels of competition that are faced by the organization in the industry can also be faced with
the help of efficient supply chain management.
According to Paulraj, Chen and Blome (2017), proper management of inventory is
considered to be another major part of the inventory management system of the
organizations. The effective process of inventory management is based on two major
concepts, (1) decision-making based responsibilities that are defined in a clear way at
different tactical, strategic as well as operational levels. (2) effective coordination that is
present across the supply chain based functions across the organizations. The activities
related to inventory management and supply chain management are performed by the
management at the strategic level in different organizations.
As argued by Prajogo, Oke and Olhager (2016), the decisions are made by the
organizations related to the objectives that have been set by the organization in an effective
manner. After the decisions have been made at strategic level, the business based decisions
on the other hand are taken at the tactical levels. The decisions that are taken by the
organizations as a part of the proper inventory management need to be aligned effectively
with the objectives that are have been set.

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The main aim of strategic level based activities is mainly related to the establishment
of an end-to-end performance based strategy that is able to guide the designs of supply chain
based networks and strategy based on inventory deployment. The strategy related to
performance is aligned with the end-to-end supply chain based attributes. The tactical level in
an organization is related to the proper coordination between logistics and planning based
functions which help in achievement of inventory management (Scholten & Schilder, 2015).
As discussed by Stadtler (2015), resource allocation is considered to be a process that
is based on the proper assigning and managing of the assets that have been gained by an
organization. The strategic goals that have been achieved by the organization are also related
to the proper resource allocation that is conducted. Managing the tangible assets like
hardware and soft assets like human capital are also considered to be an important factor that
is able to affect the organizations. Proper balancing of priorities and needs of the
organizations mainly involve the resource allocation based process. The limited resources are
thereby used by the organizations in order to gain the highest levels of return of the
investments (Hsu, Tan & Mohamad Zailani, 2016).
According to Touboulic and Walker (2015), supply chain management based process
has been affected by the changes that have taken in the external environment. The key trends
have a major effect on the ways by which supply chain based activities are performed by the
organizations in an effective manner. A supply chain that is inefficient in nature has a
negative influence on different aspects of the organization. The supply chain management
based process of different organizations are affected by six major trends in the market. The
upgrades that have taken place in the implementation of technologies in different processes
have an impact on the trends that are developed. The six key trends that have an effect on the
organization are as discussed further (Scholten & Schilder, 2015).

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Trend 1 – As discussed by Prajogo, Oke and Olhager (2016), the process of demand
planning mainly begins after the end of a particular cycle. The capacities and sources for
manufacturing process have started increasing and many organizations have started making
efforts that are related to the production based planning. The systems related to demand
planning and various strategies are helpful in uncovering the data which help in proper
identification of the trends that are a part of the information systems of the organization. The
demand based review are made in order to gather information that are related to various
organizational aspects. The proper forecast process is based on the demand review based
activities that are performed by the organizations (Ho et al., 2015).
Trend 2 – According to Mangan, Lalwani and Lalwani (2016), the changes that have
taken place in the business environment and implementation of globalisation based activities
has been able to play a major role in changing the supply chain management. The impact of
globalization on supply chain management is high and global environment of business has
been affected in a huge manner. The global supplier and customer base of the organization is
affected by the technologies that have been implemented.
Trend 3 – As argued by Prajogo, Oke and Olhager (2016), the product and price
based factors of the organization are able to increase the levels of brand recognition in the
industry. The stages of competition in the industry have increased in the last few years and
brand recognition is considered to be a key factor that is able to affect the operations of
different companies. The companies are thereby aiming at developing proper product
innovation and reduction of costs related to different operations as well. The cost based
improvement in inventory management activities are considered to be important for the
organization.

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Trend 4 – As discussed by Kirchoff, Tate and Mollenkopf (2016), outsourcing is also
considered to be another major trend that has been started by the modern organizations in the
industry. The core competencies of the organization are based on the ways by which the
organization aims at outsourcing different activities. The marketplace related improvements
are based on different aspects like, information systems, quality and cost related to global
manufacturing and the design capabilities related to products. The economic benefits that are
gained from outsourcing are high and the organizations are able to operate with the help of
lower costs (Paulraj, Chen & Blome, 2017).
Trend 5 – As opined by Brandenburg and Rebs (2015), the complex and short product
life cycles have an impact on the supply chain management related activities of the
organizations. The cannibalization of the existing products that are high in demand can have
a major impact on the organizations and their revenues as well. Product life cycle
management or PLM related processes are able to help the organizations to manage the
products and reduce risks which are related to different operations.
Trend 6 – According to Gunasekaran et al. (2017), collaboration that has been
developed between the supply chain and the stakeholders. The supply chains of the
organizations can be developed and the maturity levels can be gained in an effective manner.
The entire value chain of the organization will thereby be based on the stakeholders and their
work process.
Conclusion
The essay can be concluded by stating the supply chain management related activities
of modern organizations have been affected by the changes that have taken place in proper
implementation of technologies. The trends that have started in the supply chains of the
organizations have influenced the profitability levels of organizations.

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References
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Appendices
Appendix 1
Appendix 2

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Appendix 3