Introduction to Business Processes

RUNNING HEAD: SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN
SUPPLY CHAIN AND OPERATION
MANAGEMNT

SUPPLY CHAIN MANAGEMENT 1
Contents
Introduction................................................................................................................................2
Relationship................................................................................................................................2
Business functions..................................................................................................................3
Success factors........................................................................................................................4
Role of technology in supplier’s relationship............................................................................5
Effectiveness of strategies......................................................................................................5
Use of information technology...............................................................................................6
Recommendations..................................................................................................................7
Supply relationship system.................................................................................................7
Importance of logistics and procurements.................................................................................8
Effectiveness of Procurement Strategies and Procedures..........................................................8
Improving Logistics and Procurement Strategies......................................................................9
Systematic order of procurement and inventory control..........................................................10
Designing an Economic Order Quantity..............................................................................10
Role of LIFO and FIFO........................................................................................................11
Improvement in supply chain...................................................................................................12
Supply chain strategies.........................................................................................................12
Choice of strategy.................................................................................................................13
Conclusion................................................................................................................................14
Bibliography.............................................................................................................................16

SUPPLY CHAIN MANAGEMENT 2
Introduction
The report focuses on the concept of ‘Supply chain and operations management’. It refers to
the management of the flow of goods and services (from the alteration of raw material to
finished product). It involves the application of combined planning and implementation of the
procedure to improve the flow of supplies, information, and planning. It allows the
organization to gain competitive advantage (Jacobs et al., 2014). It assists to manage
demand and cut operating costs included in the supply chain process. It allows meeting
customer's demands effectively. It benefits in providing the required product to the customer
at the right location and time. Thus, reduced cost, availability of high demand, and satisfied
customers enables the organization to improve its profitability and financial position
(Chopra et al., 2013).
Focusing on the report structure, the initial section includes the connection between supply
chain management, operations management, and organizational business objectives. It
involves the application of real-world industry scenarios. The next section focuses on the
critical analysis of the role of technology in suppliers’ relationships. The passing section
includes information based on procurement and inventory control. The last part involves the
economical and feasible recommendations for improvement in the supply chain.
The key drive of the report is to emphasize relevant influences for developing effectiveness in
supply chain and operations management. It offers an opportunity to raise an understanding
of operational processes, techniques, planning, and control system.
Relationship
The effective supply chain and operation management attain a high significance in achieving
organizational objectives.
1. Raise output: SCM aims to advance communication, association, and coordination
with vendors, transportation, and shipping companies. Thus, it gave rise to the
completion of activities in an effective manner and gave more accurate output results
(Vries & Huijsman, 2011).
2. Raise business profit level: effective supply chain management involves the
application of new and innovative technologies and also minimizes the requirement of
human resources. The lower dependence on labor reduces the cost and raises profit

SUPPLY CHAIN MANAGEMENT 3
(Jurado & Fuentes, 2014). Additionally, it minimizes the waste material in the
production process.
3. Boosts cooperation: The timely availability of raw material improves and strengthens
the relationship with the suppliers. It also gave rise to the development of fine
interpersonal relationships with the suppliers. Thus, it supports the goal of
establishing a long term relationship with the stakeholder (Christopher, 2016).
4. Lower delay in the process: It enables delivering a merchandise to the customers at
the correct time and accurate location. It aids in maintaining customer convenience
and improving their satisfaction.
5. Improving product quality: effective supply chain emphasized strengthening product
quality and gave rise to more sustainable products (Monczka et al., 2015).
6. Attracting and retaining employees: Increase in customer strength will improve
organization recognition in the market. Thus, the organization can easily recruit
skilled candidates for the organization.
7. Minimizes the risk of negative public relations (PR): Responsible supply chain
management safeguards the organization from negative PR (James, 2012).
8. Creates new market opportunities: Responsive supply chain gave rise to satisfied
customers and improves business reputation. This, in turn, offers the opportunity to
tap into a new market. It allows the organization to fulfill the business objective of
market expansion.
9. Complying with customer’s expectations: Effective supply chain complies with the
internationally recognized CRS standards and guidelines. It assists in the fulfillment
of customer's expectations with the product/service. It aids in maintaining customer’s
interest and raising their satisfaction level (Hugos, 2018).
Business functions
The business functions attain a direct relation with the supply chain management.
Purchase function
The basic function of an organization is to avail of the raw material from the suppliers. The
business organization should purchase raw material from farmers engaged in organic
farming. Additionally, the organization should utilize the material in the best possible manner
to avail maximum productivity. It should purchase the essentials from the specific suppliers