Supply Chain Management: Procurement and Logistics Report

This report delves into the intricacies of supply chain management, specifically focusing on the critical aspects of procurement and logistics. It begins by comparing modern supply chain strategies with traditional distribution channels, highlighting the enduring importance of raw material procurement. The report emphasizes the pivotal role of suppliers in ensuring the quality and cost-effectiveness of raw materials, directly influencing consumer satisfaction. The assignment further examines the interconnectedness of various supply chain components, including suppliers, distributors, and retailers, underscoring the importance of real-time data sharing and communication. It highlights the crucial role of suppliers in assessing market demands and supporting the launch of new products, enabling companies to adapt and compete effectively. The report also underscores the strategic significance of supplier relationships in building robust supply chains, emphasizing the impact on cost control, product quality, and overall business strategy.

Strategic Purchasing and Logistics
Question: Describe a similarity or a difference between a modern supply chain versus earlier
distribution channels?
Answer: Although the current strategy implemented in supply chain management varies a lot
from the conventional distribution channels, but still there is a very crucial resemblance and is
listed as a pre-requisite for a successful channel. This involves procurement of raw materials.
Every organization needs a supplier or multiple suppliers for obtaining raw materials so that the
order from customers can be fulfilled at the earliest. This also gives time to the organization for
assessing the quality of raw materials received thereby regulating the quality and freshness of the
product delivered. The tenders passed for the procurement of raw material give enough time for
the suppliers to assess the need of the market and also that of the company. Both the traditional
and modern supply chains, however, differ in the strategies being adopted for associating more
customers, but still, the foundation parameters for starting and initiating these supply chain
management are same.
Question: The supply chain extends from needs identification to products delivery and includes
several independent activities. Please describe your perspective of the criticality of one of these
functional areas?
Answer: Supply chain involves several critical steps that are monitored by various individual
parties. However, at all time there is a real time data sharing and communication between the
focal company and its partners. This may involve links with suppliers that further communicate
with various suppliers for obtaining raw materials and connection with the wholesale distributors
which are further linked to retailers. Suppliers play an imperative and crucial role in any supply
chain management as they are responsible for providing quality raw materials, raw materials at
competitive prices that are otherwise available at higher prices in the market. All these
parameters control the cost and quality of the product leading to greater consumer satisfaction
and help supplier to build stronger alliances and effective management. Apart from providing
substantial components for manufacturing any commodity, suppliers also tend to play a
fundamental role in assessing the launch of new products. They can share the information with
their clients which helps the focal company to compete with other brands available and update
their products as per the demands of the customers.