UNIT 26 SUPPLY CHAIN MANAGEMENT

Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Concepts, Principles and Process of Supply Chain Management..........................................1
TASK 2............................................................................................................................................4
P2 Importance of SCM................................................................................................................4
TASK 3............................................................................................................................................5
P3 Interrelation between supply chain and other departments of company................................5
TASK 4...........................................................................................................................................7
P4 Evaluation and suggestion for current supply chain management.........................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Supply Chain Management is a process of managing and aligning the wide range of
practices including the movement of raw materials, work in progress inventory and of finished
products till the point of consumption (What is supply chain management, 2020). It explains the
mechanism of planning, controlling and executing production to distribution flow in best
economic terms. Supply chain explains the networks or channels of large number of suppliers.
Kellogg Company is one of the leading food manufacturing brand which produces well
known diversified products such as cereal, toaster pastries, frozen breakfast, special K and much
more. Its products are manufactured in 19 countries and marketed in more than 180 countries
across globe. This report encloses information about SCM concepts and principles along with
their impact over different components of supply chain in context of Kellogg organization.
Report contain detail significance of SCM in respect suppliers to customers. Further, it evaluate
the supply chain strategy of following organization and provides recommendations. Also,
explains the interrelation of SCM with other organizational functions.
TASK 1
P1 Concepts, Principles and Process of Supply Chain Management.
Supply chain management is actively used in organization to increase value of customers
and maintain the competitive advantage of firm. It exhibits course of actions that handle whole
production stream of goods/services that begins from conversion of raw elements to distribution
of final product to market (Chin, Tat and Sulaiman, 2015).
Concepts and Principles of SCM
SCM is a wide area of management which contains various terms and concepts. Each
concept has its own significance in field of supply chain. Some them are explained below:
1. Logistic Management: It is an important component of SCM which explains the process
of fulfilling market demand on right time at right place by effectual movement and
storage of goods and services with proper planning and implementation. This
management helps firms to minimize cost and meet customer requirements.
2. Value Chain: It refers to set of activities which are required to produce a product or
service. As a part of SCM it justify the stages through which good is being processed and
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to final distribution phase. It includes various factors in between from procuring raw
materials to till marketing activities.3. Distribution channel: This component is a spine of every Supply chain management
because it involves different modes and medium through which final product or services
can served to target market. This element act as a support system which ensure effective
flow of goods from producer to final user (Dubey and et. al., 2017).
7 Principles of SCM
 Adapt Supply chain to Customer's needs: this principle states that supply chain
manager required to understand the different consumer needs as target market is divided
in number of target segments. There has to be proper supply chain in company to serve
these segments profitability.
 Customize logistics network: organization required to preserve a effective logistic
network to meet requirements of distinct segments on right time. SCM manager needs to
strategize accurate distribution plan to meet urgent deliveries.
 Align demand planning across supply chain: this principle states that SCM manager
must consider the market signals, ensures optimal allocation of resources and maintain
shared informational data with trading partners.
 Differentiate Products Close to customers: SCM manager needs to understand the
difference between Standardization and differentiation in order to reduce its cost of
production.
 Outsources Strategically: this principle states that SCM manger required to strategize
its sources appropriately to minimize total cost of materials and services.
 Develop IT: Organization required to build effective IT projects to support multi-level
decision making which provides a transparent flow of information and products.
 Adapt both services and financial matrices: SCM manager must establish channel
performance measures to sustain success in meeting end-user demand efficiently
(Copacino, 2019).
PROCESS OF SCM
1. PLANNING: The first stage of SCM approach is to forecast or develop a blueprint of
course of actions in order to satisfy the demands and essential requirements of customers.
This identify the answers about how products can be delivered to end user effectively. In
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