Supply Chain Managment - Essay

Supply Chain Managment - Essay

  • Submitted By: beatrice
  • Date Submitted: 11/24/2008 6:27 PM
  • Category: Business
  • Words: 3247
  • Page: 13
  • Views: 2

Operations Management focuses on several key aspects surrounding a company’s growth and strategic implementations. One of the critical success they mention and many companys needs to consider is Supply Chain Management. Supply Chain Management “is the integration of the activities that procure materials and services, transform them into goods and final products and deliver them to customers.” (Jay Heizer) This includes purchasing and outsourcing as well as all other functional areas involved between suppliers and distributors. In essence Supply Chain Management integrates the supply and demand management within and across the company. This process is so important that in today’s market those with the most developed supply chains will be the only ones to succeed. The reasoning behind this logic is, we as the consumers are becoming more aware of what and how companies are operating, thus we are putting more accountability on these businesses to ensure satisfaction. As Paul Druckman stated “Organizations have to seriously examine their approach to managing, measuring and reporting on their supply chain performance.”(Paul) The inability to measure the supply chain and the loss of control within the structure can seriously injury a company’s growth. Lacking a quantifiable supply chain and sustainable stock of inventory, companies face communication failures between suppliers and distributors thus leaving unsatisfied customers.(Humair) Major companies like; Caterpillar, Komatsu, and Fiat-Hitachi have all benefitted by improving the efficiency of their supply chain to meet consumer demands. Each one of these companies has specific activities and functions specifically related to their supply chain process. These activities and functions must be integrated uniquely to fit each company’s desirable output. Airbus for example is trying to streamline their production, in order to keep up with demand. This one of a kind incorporation allows Airbus to mix and...

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