Supply management is one of the most important elements of any business. The competitiveness of a company directly depends on the effectiveness of the established supply chains. I believe that a new supply management model is necessary for our company as it provides more effective methods of developing and maintaining supply chains. This e-mail is to convince my department supervisor to apply an advanced supply system that uses cloud technology.
I suggest adopting a business model that is based on real-time demand analyzing and shaping. Several points support such a decision. First, instruments that can address contingencies will help to effectively respond to various risks, such as changes in regulations or environmental issues. It is necessary to improve pricing and distribution strategies because it will eventually shape demand, promote new products faster, and increase revenue. This model will help to use opportunities and avoid problematic areas to make the company more successful (“Strategic Supply Chain Management,” n.d.). To implement this, it is important to employ new supply chain technologies. They ensure better monitoring and control of the company’s inventory at all stages of production. One of the most effective innovations relevant to this case is a cloud technology (Clervi, 2015). Second, a new model is paramount to developing competitive supply chains adaptive to fast-changing opportunities and demands. The existing model allowed changing production and supply only at the beginning of a new month. It is not effective as changes in markets occur more often (Akdogan & Demirtas, 2014). Third, innovations should be used to enhance product management for supply.
One of the most important issues is product design. It also can be adjusted for supply chain operations. However, it will require analyzing all the existing costs to keep internal systems in balance even though it should be aimed at managing all processes, information, and specialists at all stages of production and distribution. It is necessary to manage and select suppliers in a more consistent manner. It is also important to align supply chains with the company’s objectives (“Strategic Supply Chain Management,” n.d.). To do this, it is necessary to integrate sales and production planning into the overall business plan. Also, sustainability is crucial for supply chains. Social and environmental stability is a factor that determines the competitiveness of a company. Also, continuous analysis of resource utilization is necessary to optimize the consumption of energy. Finally, this model will improve the reliability of the company. The cloud technology offers tools that are necessary to link production operations to customer demands. It is necessary to continue working on improvements and optimization to avoid supply deficit.
In conclusion, the above-described model helps to address all factors that are pertinent to supply management. It improves the overall performance of the company and its profitability. The cloud technology facilitates most internal processes. Although it requires additional investments, this system will completely pay off. Therefore, this model should be adopted by our company.
Akdogan, A. A., & Demirtas, O. (2014). Managerial role in strategic supply chain management. Procedia-Social and Behavioral Sciences, 150, 1020-1029.
Clervi, A. (2015). Cloud computing is transforming supply chain management. Web.
Strategic Supply Chain Management. (n.d.). Web.