Analyzing Supply Chain Management Based on Seven Principles

Supply Chain Management
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Table of Contents
Introduction.................................................................................................................................................2
Methodology...............................................................................................................................................3
Principle 1: Segment customers based on the service needs of distinct groups and adapt the supply chain
to serve these segments profitably...............................................................................................................4
Principle 6: Develop a supply chain-wide technology strategy that supports multiple levels of decision
making and gives a clear view of the flow of products, services, and information......................................5
Other Principles...........................................................................................................................................6
Personal opinion..........................................................................................................................................6
Conclusion...................................................................................................................................................6
References...................................................................................................................................................9

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Introduction
The article is entirely based on analyzing supply chain management based on seven
principles. The article was written by David Anderson, Donavon Favre and Frank Britt who are
considered to be the experts of Anderson consulting from the respected Logistics practice. In the
ten year history of supply chain management, it is considered to be the most requested article
that appeared in 1997 (Anderson, 1997). The article based on supply chain management is
determined to be a compelling and clear case that presents excellence in supply chain
management. The study provided with an understanding of the importance of supply chain
management for the managers within an organization. It helps the managers to gather
information on how to satisfy the needs of the customers effectively. It also presents the fact that
if the company is capable of fulfilling the demand of the customers than it helps the organization
to increase profitability and growth. It has been observed from the article that most of the
companies have achieved profitable growth by considering supply chain management as a
strategic variable. To enhance supply chain management, the managers within the organization
identifies two significant factors they are determining supply chain as a whole and gaining
tangible results. The first factor that considers supply chain as a whole includes managing the
flow of information, services, and products from their distributors to their customers. Whereas,
the second factor that is to gain tangible results focuses upon cost, utilization of asset and
revenue growth. The managers realized that rejecting a company's traditional view along with its
elements as distinct functional entities is an actual measure of success (Genovese et al., 2017). It
helps in executing the organizational activities effectively that generates significant value for
customers by maximizing profitability based on each chain of management.
The key aspects of this particular article are to provide with an analysis to enhance supply
chain management by more than 100 retailers, distributors, and manufacturers. It shows that by
making use of some of the principles of supply chain management, most of the companies have
gained profit. Whereas, few of the companies have failed by utilizing the techniques given in the
principles. Several themes have been shared by the organizations that have contributed to
profitable growth. The organizations have gained profitable growth due to broad efforts by
combining both tactical and strategic change (Martínez-Jurado and Moyano-Fuentes, 2014).
They present a holistic approach by observing supply chin from orchestrating an end to end

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effort. It is done to achieve the whole improvement in asset utilization, costs, and revenue which
is considered to be greater as compared to the sum of parts. Uncoordinated change activity could
take place in every function and department that puts the organization in great risk. Seldom
management fails in identifying the needs of fixing. Such an issue helps in executing and
developing the plan for supply chain transformation that could move different complex operating
entities. The seven fundamental principles of supply chain management undertaken by most
successful manufacturers help the managers to make relevant decisions. It helps the managers to
take note from their experiences to better execute their work. The article is significant as it
provides with the strategies that are helpful for the managers to gather knowledge about how to
develop supply chain management (Gattorna, 2017). The article presents seven principles of
supply chain management along with practical examples. As per the author, managers have
found that they could achieve the objective of the company by maintaining an ideal situation by
considering supply chain management as a strategic factor. Therefore, the article provides with
an analysis to improve supply chain management that proves to be effective for the modern
organizations.
Methodology
The methodology of this particular article is entirely based on analysis to enhance supply
chain management by suppliers, dealers, and builders. With the help of practical examples and
theoretical frameworks, the overall practical observations have been executed. By comparing the
differences and similarities related to the information provided the author has effectively
presented the assuming designs in the seven principles based on supply chain management
(Meixell and Luoma, 2015). It has been observed that the study has been conducted at the time
when broadband service was not developed else it might have been included in the article. It can
be seen from the examples provided that some of the principles did not benefit a few of the
organizations in enhancing their supply chain management. Therefore, it is noticed that the
methodology of the article fails to meet the needs of the manufacturers due to the occurrence of
undependable sample size. Hence, the research which will be conducted in the future must focus
upon providing a dependable sample size that will provide appropriate information based on the
seven principles of supply chain management (Kamalahmadi and Parast, 2016). Also, the
researchers must make use of modern technologies within the seven principles that could be
beneficial for modern companies if used efficiently.