The Concept of Supply Chain Management
How would you explain the concept of supply chain management to your children? They are 8 and 10 years old. Provide an example that they would understand.
An effective teaching plan can be used to explain the concept of supply chain management (SCM) to small children. Since the targeted children are aged between 8 and 10 years, I will begin by describing the supply chain process to them. I will explain that the process revolves around the flow of goods from the manufacturer to the consumer. Before the finished products reach the targeted user, several activities such as storage, inventory, warehousing, and transportation have to take place. The chidlren will then be informed that there are competent people whose role is to ensure each of these activities is completed successfully. Such activities ensure the products are delivered to the customer. I will then tell them that these processes and activities amount to supply chain process and management. The managerial practice focuses on the activities undertaken to ensure every process is completed successfully.
In order to ensure the targeted chidlren understand the concept of supply chain management, I will use the example of Coke. I will inform them about the activities undertaken by Coca Cola Company in order to ensure the children’s favorite carbonated drink is available to them. They will understand how the company uses appropriate practices to transport, monitor, and deliver the product in different consumer outlets. The chidlren will understand that stocktaking is done in order to support the entire process. The information will ensure the chidlren understand the meaning of SCM.
You are the supply chain manager at the Los Arms Hotel. During an accreditation review by the AAA, you are asked how you select suppliers and measure supplier performance. As you begin to take out your performance charts, the lead examiner tells you to put them away and speak from the heart. What to you say?
As the Supply Chain Manager, I will begin by explaining how the right suppliers are selected based on the quality of their raw materials or products. One of the best strategies is ensuring that the suppliers are capable of providing materials that resonate with the changing needs of Los Arms Hotel’s customers. After identifying the potential suppliers, the department examines their corporate social responsibility (CSR) performances and ethical practices. These aspects measure the suppliers’ willingness to support the hotel’s business model. This information is then used to select the most appropriate suppliers that can form a sustainable partnership with the institution.
Supplier performance is measured continuously to ensure the hotel remains profitable. Throughout the supply chain process, the suppliers are encouraged to collaborate with the organization. This kind of collaboration is usually monitored and recorded continuously. Supplier performance is measured using a number of indicators such as quality of materials, delivery time, and sustainability. The review is conducted periodically in order to do away with nonperforming suppliers. I will go a step further to explain how skilled supervisors and logistical experts are hired to monitor the performance of different suppliers. Consequently, suppliers whose business models support the organization’s goals are retained.
Your company is applying for a state sponsored quality award, and the application needs a 300-word ethics statement from the supply chain management department. You are asked to submit one. What does it say?
The ethics statement from the firm’s supply chain management (SCM) department will outline a number of issues. The first one is that the selected partners are ethical whenever producing and supplying the intended materials. The letter will indicate that the selected suppliers do not use child labor or unfair business practices. The report will go further to explain how logistical players embrace sustainable methods to conserve the natural environment. The firm goes further to ensure the suppliers and logistical operators use recyclable materials. The level of professionalism is monitored and maintained throughout the supply chain process. The major participants in the supply chain adhere to the firm’s ethical policy.
Green accounting is also embraced whenever monitoring the effectiveness of the supply chain process. This approach ensures that the operations undertaken do not have adverse impacts on the natural environment. Every party involved in the supply chain network is required to remain accountable and transparent. This is the case because the players focus on the existing policies. The concept of continuous improvement is also taken seriously by the department. This is the case because research and development (R&D) identifies sustainable and ethical practices that can fulfill the SCM department’s ethics policy.
Your CFO reads an article in an airline magazine about the changes happening in warehousing. Upon her return to the office, she asks you for a brief report on the state of the warehouse of the future. What do you write?
The modern warehouse is becoming an integral aspect of every supply chain. Within the past sixty years, warehouses have been used for hoarding or storing products. However, the warehouse is now a new place for implementing new improvements and changes. The future warehouse manager will be required to acquire new ideas and concepts based on the changing consumer behaviors. This warehouse will be used to store specific products that are needed by the customer. This practise will ensure inventory is evidence-based and guided by consumer behaviors.
Space ownership is a new shift in the nature of warehousing. More companies will be focusing on the best measures to shift warehouse space to insurance firms and third parties. With the concept of outsourcing, more corporations will ensure warehousing duties are completed by the targeted companies. The warehouse has become a place whereby human resources (HR) concepts are needed in order to drive operations and performance. Technology will also become a critical aspect of warehousing. The use of modern technologies will promote inventory and planning. Cost reduction, consumer satisfaction, and service improvement will definitely be pioneered by the future warehouse manager. These measures will eventually streamline the supply chain process and support every firm’s business model.