Supply Chain Management and Optimization

The provided assignment delves into the realm of supply chain management and optimization, exploring its complexities and nuances. The document references numerous studies and research papers on the topic, highlighting key findings and insights. It also touches upon the intersection of technology and supply chain management, specifically IoT devices and their impact. This resource is ideal for students and professionals seeking to deepen their understanding of supply chain management, making it a valuable addition to Desklib's collection of past papers and solved assignments.

SUPPLY CHAINS AND LOGISTICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Supply chain management is the study of management with prime focus on maintenance
of logistics for understanding the needs and demands of the customers. This has increasingly
making substantial changes for gaining the profits and success due to rise of e-commerce and
interventions due to information technology (Barratt, 2016). Moreover, the customers'
satisfaction plus the marketplaces are interconnected are considered crucial in brining any
modifications to attain the desired outcomes. Subsequently, the adoption of lean approach has
helped in minimising the waste along with concentrating on improving the operations of the
supply chain by maximising the logistics to stay in the volatile markets effectually.
This essay is based on the critical analysis of the significance of role of customers in the
marketplaces. It will shed light on the wider conceptual framework of lean thinking paradigm to
understand the perceptions, taste and opinions of the customers. Along with, it will include about
the pros and cons of the customer services management with respect to supply chain
management due to rise of e-commerce and IT tools.
MAIN BODY
Impact of globalisation on customers' perception in relation to SCM
Globalisation has brought revolutionary changes in the way the world is conducting
businesses to meet the customers' expectations. It led to open economies and gave a platform for
developing countries to compete with the developed countries in terms of expansion and selling-
buying of commodities and providing services to different customers. This is mainly linked with
the supply chain management of companies and it helped in marking their presence on the global
map to gain the potential consumers' (Quarshie, Salmi & Leuschner, 2016). It transformed the
complicated environments into simplified manner so that several firms can make decisions to
target the audience at correct time with usage of correct information to attain the objectives and
goals.
In regard to the same, this has given variety of options to the customers who changes
their preferences, specifications and needs on the basis of demands, the latest trends or any
prevalent technological tools. It has affected the customization of products along with progressed
the usage of IT systems to maintain the sustainability and agility factors in context to supply
chain and logistics. Henceforth, this agility is evident these days due to enhanced awareness

among the customers' and their response rates towards any innovation or change in the existing
product or service.
Emergence of Supply chain design with Information Technology Practices for better customers'
services
Supply chain management (SCM) mainly deals with proper designing and implementing
of the processes to maintain and optimise the allocated resources along with finance and other
details required in an enterprise. With rise of Information systems and advancements in the
technological field. This is in collaborative link with the change management, risk management
and collaborations. Large organisations like Amazon, Jockey, Tesco etc. have inculcated a sense
of marketing tactic through employing IT tools and other technologies to gain their customers'
attention in appropriate manner (Ba,Prins & Prodhon, 2016). For e.g. Relocating the
warehousing or storage places for better viability in cutting down the single-item deliveries that
will also aid in reduction of greenhouse gas emissions.
There is a huge leap of success rate in customers' retention recently, due to use of mobile
applications and social media platforms such as Facebook, YouTube etc. With the help of
globalized supply chain, it led to sourcing opportunities, cost effectiveness, improved quality and
many more. Moreover, it helps in understanding the survivability factor in the competitive
marketplaces (Supply Chain Management, 2018). This also aids in building relationships through
reliability and trust by addressing their queries in user friendly order. For e.g. e-commerce
websites have become more portable and customer friendly and give them choices in abundance.
Logistics and customers services management
Logistics is one of the components of supply chain management which concentrates on
the management of moving product to the right place at right time. It involves a number of
activities such as packing, transporting, distributing, storing and delivery. This plays the major
role in grabbing attention of customers in the most profound manner. Along with, it shed light on
the management of all the components with respect to the strategic sourcing of SCM (Yawar
and Seuring, 2017). It would support in establishing the dual purpose in terms of enhancing the
longevity at both local and global levels along with maintaining the image of brand's product or
service properly with reinforcing the ethical standards to gain the sustainability factor.

Furthermore, this aspect is connected with the supply chain analytics, internet of things
(IoT), robotics, implementation of AI for automation to make customers' lives easier and
convenient. It also emphasis on providing better products at reasonable price ranges to enhance
their existing customers and adding new ones. For e.g. IoT assist in tracking of temperature and
other sensory parameters while checking the quality of food for better preventive standards in
hospitality industry (IoT devices, 2018).
Role of customers at organizational level
Customers are the external stakeholders in organizations that play a vital role in handling
of all the operational activities in indirect manner. In today's world, there has been a shift from
traditional methodology from retailers, distributors to the new IT found supply chain
management which is driving mainly on the E-commerce platforms (García-Arca & et.al., 2014).
It has modified the buying behaviour of customers in exponential direction using the delivery
factor effectively. There is application of several supply chain approaches that give the
customers' a customized experience by making selection from pool of options.
Supply chain is generally considered the strategic management concept that involves the
managing and understanding the activities of supply chain. Supplier always try to add more
value for increasing the productivity and profitability in marketplaces. Each and every
organization has certain supply chain in the irrespective to entire size of market. Many
companies are target to the customer to provide the best quality of product and service in proper
manner. Customer decided to buy the product in particular supply chain according to their choice
. It is necessary for organization to maintain the structure of supply chain in proper manner
because it is directly link among the product such as end consumers. Logistic management is part
of supply chain functions (Lee & et.al., 2018). There are various types activities that include
outbound and inbound transportation, order fulfilment, warehousing, inventory management etc.
Customer is playing important role in supply chain and logistics because buyer can be identified
the efficient supplier that provide the best effective deals and offers to the consumers. It will
search for innovative partner that provide the best quality of product and service to their
consumers.
Many endeavours also create supply chain that distribute the ethical services on the basis
of quality. In this way, it can determine that customer decision and demand directly affect the
supplier and buyer. The significance of customer means to look out the supply chain resilience

all around them. The primary needs of supplier to add more values otherwise it converts into the
risk and negatively impact to the supply chain. Supplier can follow the specific strategies that
help for building the risk that includes risk governance, redundancy in the product and flexibility
etc. It is required for development and management of supply chain to link in the both the parties
between consumer and organisations (Alwan & et.al., 2018). In this way, it will help for increase
the productivity and profitability in marketplace. It easier for place the centre in business model
and front of consumers. The supplier management platform and communities are participated to
verify the right supplier or also identify the streamline process of tender.
It is essential for implementing the specific robust supplier management system that help
for control the risk in the entire system. It also creates more resilience supplier chain which
based on the consumer choice and interest. The delivery to the consumer is the last link which is
complex and long chain. For Example- buyer can start the chain and the customer participate as
next people in the process those who will receive the best product in the warehouse and also
delivered the right persons by using the process. In this way, it will create a strong link between
the customer and supplier to provide the end product in proper manner. Another example- there
is another person that specified role to maintain the product quality and their services in effective
manner. This will change the broken light which enables for driver to load the vehicle.
Organization is becoming the successful because they have maintained their strong link and
internal communication that help for maintain the performance between the consumers and
suppliers.
Relationship between the lean thinking paradigm and customers
Leanness helps in formation of a value stream that connects the fluctuations of the market
by increasing the market share and minimising the customers' lead times with service variety to
improve the profitability and productivity as well (Holweg & Bicheno, 2016). Moreover, this
gives insights on the construction of procedures and processes that systematically add value
without any supplementary non-value activities that unnecessary put burden to give something
new to the customers. For instance, when Marks and Spencer could not gain momentum in the
market among their rival companies with their clothing retailing, they collaborated with Tata
Consultancy Services, the biggest giant Information Technology company to reinvent their

strategic planning in the operations' management to bring diversity and freshness in their
inventory and warehousing management systems.
This lean paradigm affects the supply chain in context to needs, specifications and
demands of the customers that are interconnected with the service quality and decision making
made by corporations and companies. In this regard, the elimination of waste can be reduced and
focuses more on efficiency and effectiveness of the operations of supply chain so that the agility
can be maintained and helps in driving the customers with execution of fast and flexible
structure. Also, it aids in accurate planning to meet the supply-demand chain of the customers in
appropriate order.
Along with, agility is termed as knowledge based strategic tool that infers the progressive
pathways between the internal and external environment of business to gain the economic
profits. There is a recent survey has estimated that 50 percent of the supply chains in
manufacturing sector that outsourcing would be done directly in the form of home delivery for
making the customers satisfied by the year 2020 (Molina-Besch & Pålsson, 2014). Additionally,
the quick response (QR) is also important to meet the expectations of customers through proper
planning in the supply chain. This enables the synchronization of supply with logistics operations
to meet the fluctuating ups and downs of the market on the basis of demand.
Implications of supply chain framework
With technology, the supply chain has seen drastic modifications and led to progressive
scenarios in the global marketplaces between companies. As per the survey, there is an
investment needed to bring changes in the customers' experience as per the CEO's of many
companies and organizations. This transitional phase is due to practising and adopting of IT
systems to improve the B2B and B2C conversations.
Customers these days have become sensible in spending powers and understand their
rights in clear and coherent manner. Moreover, it assists in cutting out resellers and leads to the
direct communication with the end users. In addition to this, there is a need of maintaining this
customer driven strategies effectively to lay the foundation of understanding the performance
metrics like brand equity, experience ratings, their perceptions and evaluations. It emphasis on
the implementation of lean thinking paradigm for survival component for organizations to keep a
hold on their customers to make the deliveries on time with right product and right price.

On the other hand, there is a disadvantage that such direct connectivity also leads to
scams, fraud, phishing process etc. where the customers get cheated or For e.g. eBay had to
adopt techniques to overcome the challenges faced due to fake escrow services and identity theft
(Boudoin, Morel & Gardat, 2014). Their development team introduced the eBay security toolbar
that has to be downloaded when shopping and making payments through online mode. Here, the
customers would be safeguard from any spam mails or any URL link which could hack their
credit/debit card details. Along with, the brand management of companies would be deeply
affected and has huge impact on the reputation in the marketplaces. The overall profitability will
be hampered as customers would get deviated and move to other companies or products.
Henceforth, the trust factor might get shaken. This will make the customers move to some other
brand.
Implications of logistical framework
Customers have become choosy while shopping through several e-commerce sites and
despite quality and affordability factors, on-time delivery has become important factor to make
them satisfied. However, this can be made hassle-free through proper preparation of bound
logistics methodologies. For instance, when Amazon initiated their same day delivery and other
such offers to their customers, they cut off from the third party interferences and made their own
inventory management strong by coordinating with the warehousing management systems
(WMS) (Holmström & Partanen, 2014). Here, use of supply chain software such as JDA
software, SAP, Oracle and many more are included to make their tasks simplified and
convenient.
Furthermore, use of tracking systems along with the WMS of organizations have built a
transparent and flexible environment that improve the customers' satisfaction. Nonetheless, it
allows the visibility to the customers at each and every step after they ordered their product
through company's website or mobile application. Its inclusion has reaped benefits like low
errors, more visibility to the inventory department etc. that forms the basis of loyal customer
base. Establishment of pop-up fulfilment centres by companies has made the customers to stick
with their product or service as it alters the delivery time and makes the distribution channel
more smooth without any sourcing of capital.
However, on the other hand, there are drawbacks that led to customers' dissatisfaction.
The third parties logistics (3PL) have been consistently For e.g. when Volkswagen company's

dupe diesel case got leaked, it brought defame and tarnished their reputation in worse manner.
They apologised yet their customers' base was affected immensely and led to spiralling effects on
their revenues and sales volume (Hsu & et.al., 2016). Thus, this case put light on the internal
politics in advanced manner that led to mis-management of supply chain at such high levels.
Along with, many e-commerce companies are cutting their tie-ups with 3PL's that leads
mismanagement of capital and additional pressure on the hiring labour, paying for utilities and
more.
There is also sometimes delay in understanding the customers' queries when any
technical problems like server down or connection errors takes place. Sometimes, there is also
additional wastage of the inventory when stock remains in the storage spaces for longer duration
due to issues or problems. Furthermore, companies do not focus on the quality parameter. This
affects the loyalty criteria along with led to agitation with more time consumption in the return
policy. For e.g. when customer orders something and is not satisfied then they are able to return
it, however, in few companies the return policy is cumbersome. Along with, it affects the
feedback provision or the reviewing on various social platforms that might adversely affect on
the brand's reputation.
Therefore, customers have played significant role in making the supply chain prominent
feature while conducting any operations for achieving the revenues or sales volume. With
passing time and advanced technological inventions have paved the path of change management
to understand the lean paradigm (Barratt, 2016). This would assist in minimising the waste and
improvise the utilisation of resources allocation. Moreover, it would benefit the customers as
well as the companies to manage the sustainable development by balancing out the harmonious
relationships in real time to maintain the social, economic and environmental interests of
customers' demands and understanding in astounding manner.
CONCLUSION
It has been summarized that supply chain management has brought attention to the role of
customers in profound manner. This has shed light that customers are the real deal breakers and
creators for the survival of any product or service in the global competitive marketplaces.
Furthermore, there are advantages and disadvantages that are associated with meeting the
expectations of customers' that are directly linked with the profit generation. Along with this, the

effects of globalization on the businesses all over the world has brought turning points in more
orderly manner and led to customers gain knowledge and awareness about the product and
service. Furthermore, this essay has given insights about the usage of internet tools and social
media platforms which has given access to customers in addressing their queries and highlight
any issue or problem in a more convenient manner. To sum up, customers are the lynchpin in
making the right decisions for delivery of right product or service at right time successfully and
efficiently.
RECOMMENDATIONS
This part consists on improvising the drawbacks. The companies must make concrete
changes at initial level so that their customers are completely satisfied. Along with, their security
system must be malware free by installing legal and authentic programs so that customers do not
face any issues while paying through online mode. However, customers are value centric with
time efficiency and thus there is always attached uncertainty that act as obstacles and thus lean
framework is a helping tool here to understand the overall evaluation. This lean framework must
be implemented with strict adherence so that operations can run smoothly.
Furthermore, quality parameter must be focused and thus can be done by reducing the
dependency on the direct suppliers which consumes more time and leads to inefficient delivery
services. Along this, execution of operations must be done with proper channel to maintain the
communication channel open between the customers and the support system. Training must be
given regularly and feedbacks must be taken seriously so that understanding must be gained for
overcoming the existing challenges and problems faced by the companies.

REFERENCES
Books and Journals
Alwan, L.C. & et.al. (2018). Leveraging Consumer Technology to Learn Demand Information in
Lieu of Supply Chain Collaboration.
Ba, B.H., Prins, C. & Prodhon, C. (2016). Models for optimization and performance evaluation
of biomass supply chains: An Operations Research perspective. Renewable Energy. 87.
pp.977-989.
Barratt, M. (2016). Exploring supply chain relationships and information exchange in UK
grocery supply chains: some preliminary findings. In Developments in Logistics and
Supply Chain Management (pp. 181-188). Palgrave Macmillan, London.
Boudoin, D., Morel, C. & Gardat, M. (2014). Supply chains and urban logistics platforms.
In Sustainable urban logistics: Concepts, methods and information systems (pp. 1-20).
Springer, Berlin, Heidelberg.
García-Arca, J. & et.al. (2014). “Packaging logistics”: promoting sustainable efficiency in
supply chains. International Journal of Physical Distribution & Logistics
Management. 44(4). 325-346.
Holmström, J. & Partanen, J. (2014). Digital manufacturing-driven transformations of service
supply chains for complex products. Supply Chain Management: An International
Journal. 19(4). 421-430.
Holweg, M. & Bicheno, J. (2016). The reverse amplification effect in supply chains.
In Developments in Logistics and Supply Chain Management (pp. 52-58). Palgrave
Macmillan, London.
Hsu, C. C. & et.al. (2016). Strategic orientations, sustainable supply chain initiatives, and
reverse logistics: Empirical evidence from an emerging market. International Journal of
Operations & Production Management. 36(1). 86-110.
Lee, V.H. & et.al. (2018). The effects of supply chain management on technological innovation:
The mediating role of guanxi. International Journal of Production Economics. 205.
pp.15-29.
Molina-Besch, K. & Pålsson, H. (2014). Packaging for eco-efficient supply chains: why logistics
should get involved in the packaging development process. In Sustainable Logistics (pp.
137-163). Emerald Group Publishing Limited.
Quarshie, A.M., Salmi, A. & Leuschner, R. (2016). Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Yawar, S.A. and Seuring, S. (2017). Management of social issues in supply chains: a literature
review exploring social issues, actions and performance outcomes. Journal of Business
Ethics. 141(3). pp.621-643.
Online

IoT devices, 2018. [Online]. Available
through:<https://internetofthingsagenda.techtarget.com/definition/IoT-device>
Supply Chain Management, 2018. [Online]. Available
through:<https://www.mckinsey.com/business-functions/operations/how-we-help-
clients/supply-chain-management>.