Establishing Supply Chain Linkage: Operations and Logistics Report

This report provides an overview of establishing an effective supply chain management system within an organization. It highlights the importance of supply chain management (SCM) for improving product, information, and financial flows. The report emphasizes five key principles: technology, global perspective, risk management, visibility, and value creation. It details the tasks involved in creating an efficient management system, including strategic alignment, leveraging technology, fostering internal and external collaboration, and applying project management principles. Furthermore, it discusses the importance of creating an online marketing plan and focusing on four pillars: people, process, system, and execution. The report concludes that a well-conceived plan is the foundation of every constructive supply chain effort, and continuous evaluation and adaptation are crucial for maintaining competence.

RUNNING HEAD: Establishing Supply Chain Linkage
Establishing Supply Chain Linkage
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Establishing Supply Chain Linkage 1
“Establishing Supply Chain”
Supply chain refers to a system of organization, activities, people, resources and
information that initiates moving of a product or service from the supplier to the customer in the
target market. The supply chain process of an organization involves the transformation of raw
material and labour of employees in successful creation of finished goods and delivering them to
the end customers in the target market. An adequate supply chain system is essential for the
properly of good and services in an organization. A supply chain system of an organization
includes supplying of raw material that the company require to manufacture and distribute the
product to the intermediate of final customers present in the target market (Sunil, & Meindl,
2013). Further, the below mentioned paper is going to express the process of establishing an
accurate supply chain management system for an organization.
Before penning down the ways to establish a visible supply chain management system for
an organization, it is important to analyse the benefits of supply chain caused to an organization.
The process of SCM improves the product and material flow as effective supply chain enables
the companies to increase the product flow by initiating demand and sales forecasting. This
process also improves the inventory management system by avoiding unnecessary production
and initiating waste management practices as well. Secondly, the SCM process initiates seamless
information flow in the organization (Wisner, Tan, & Leong, 2014).
Effective supply chain management practices requires not only integration of material
flows but also the integration of information flows as well so as to organize actions in such a way
that demand is satisfied with sales in real time. Thirdly, effective supply chain system initiates
accurate financial flow as well. This process improves case flow in the value chain process by

Establishing Supply Chain Linkage 2
accurately calculating the outflow and inflow of goods and services. Thus, it can be said that by
initiating effective supply chain management system the organization gets to capture strength on
product, information and financial flow of the company (Seuring, 2013).
Coming up to the part of establishing effective supply chain management system it
should be noted that the basic structure of supply chain leads the company to form a series of
relationship with the business associations that are involved in purchasing and selling the product
and raw materials from the organization. Every organization in the market issue and process the
purchase orders on demand. Further it should be noted that the process of supply chain in an
organization is based on five principles that are technology, global perspective, risk
management, visibility and value creation. James B. Ayers, a well-known supply chain
management expert explained that the supply management of an organization should focuses on
five tasks so as to effectively create an efficient management system for business (Fawcett,
Magnan, & McCarter, 2008).
The initial objective to initiate strategic advantage through supply chain. The supply
chain process of an organization affect the employees as well as other people present outside the
internal structure of company as well. So, effective supply chain put the right people at the right
job to improve the efficiency of the company. Further, the second aspect of supply chain process
is putting the right technology at work. After putting the right type of people in business, it is
important for the management to make use of right technology for delivering the goods and
services in the target market (Walker, Di Sisto, & McBain, 2008).
The supply chain process in an organization depends on technology as with the help of
this feature the organization capture value from the external market and delivers it to the

Establishing Supply Chain Linkage 3
company. The third step of the SCM process is focusing on internal collaboration. Looking at the
traditional business structure one can easily get to know about the ways in which the business
creates silos. So, managing effective supply chain will help the organization to break down the
silos and effectively work for the betterment of the company as well. Collaborating different
functions of the business in supply chain management system will help them to eliminate the
communication gap and make better use technology as well (Lambert, 2008).
The fourth dimension is directing external collaboration to create web for the business in
external market as well. The traditional process of supply chain was self-centered that initiated
win-lose game between the buyer and the seller for creating profits. Directing external
collaboration will initiate each of the supplier to look at the opportunities that they can make use
in order to contribute value to the relationship. In return, of such contribution the suppliers also
attain profits in the target market. The last aspect of supply chain management process is
applying project management to the business. The supply chain management process is dynamic
so the organization should initiate supply chain agenda and develop all the resource and
capabilities to fulfil it for the successful growth of the business (Jacobs, Chase, & Lummus,
2011).
It should be noted that in order to establish a supply chain management system the
organization should initially create an online marketing plan. The organization should understand
the difference between strategies, goals and tactics. Initiating adequate tactics and strategies will
help the organization to effectively formulate supply chain in the business. Defining a proper
goal will help the organization to design the supply chain that would focus on improving the
state of the organization. Further, strategy is a set of rules and guidelines to direct the thinking of
employees and process of the organization (Tayur, Ganeshan, & Magazine, 2012).

Establishing Supply Chain Linkage 4
Tactics are the actions initiated to create strategies in the environment. While creating
effective supply chain for the business the company needs to focus on four pillars that are
people, process, system and execution. Further, the initial step of establishing supply chain is to
create and define key supply chain goals and results for the business. The second step defining
key tactics and initiatives to achieve goals. In order establish an effective and efficient supply
chain management system; it is important for the organization to develop short term and long
term objectives for the business (Seuring, & Müller, 2008).
The third step of establishing a supply chain management process for the business is to
outline a supply chain strategy. Strategy is about shaping the future and is the human attempt to
get to desirable ends with available means. So, the supply chain management process makes the
desired end of the business meet using available means as well. Under this process, the
organization initiates different processes like material handling, inventory management, supplier
interaction so as to implement strategic mission for the business.
Lastly, it should be noted that combining all the above mentioned aspects provides the
expected supply chain management strategy to the business. Thus, it should be noted that
foundation of every constructive supply chain effort comes with a well-conceived plan only.
Planning and strategizing is the base of the supply chain management system of an organization.
Even after establishing effective supply chain system, it is important for the management to
mould goals and strategies regularly and make effective use technology to maintain its
competence (Carter, & Rogers, 2008).
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
provided information about the process of establishing an accurate supply chain management

Establishing Supply Chain Linkage 5
system for the business. The supply chain for an organization is one of the most critical and
important process for the business. This process helps the business to combine the internal
resources and external resources for the better functions of the organization. All organizations
should establish the SCM process according to the defined strategic plan only.

Establishing Supply Chain Linkage 6
References
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for
sustainable supply chain management. Journal of cleaner production, 16(15), 1699-1710.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management:
moving toward new theory. International journal of physical distribution & logistics
management, 38(5), 360-387.
Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2011). Operations and supply chain
management (Vol. 567). New York: McGraw-Hill Irwin.
Lambert, D. M. (2008). Supply chain management: processes, partnerships, performance.
Supply Chain Management Inst.
Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply
chain management practices: Lessons from the public and private sectors. Journal of
purchasing and supply management, 14(1), 69-85.
Fawcett, S. E., Magnan, G. M., & McCarter, M. W. (2008). Benefits, barriers, and bridges to
effective supply chain management. Supply Chain Management: An International
Journal, 13(1), 35-48.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), 1513-1520.

Establishing Supply Chain Linkage 7
Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A
balanced approach. US: Cengage Learning.
Sunil, C., & Meindl, P. (2013). Supply chain management. Pearson India.