Understand The Significance Of Supply Chain Management in Business

Question: Discuss about the Understand The Significance Of Supply Chain Management in Business. Answer: Introduction: In this assignment, the different aspects related to supply chain management of beef and veal is evaluated with proper precision. At first, thesupply chain management is defined. Then the importance of the same is given. The entire processes of the supply chainmanagement are evaluated. Finally, the effective ways of supply chain management are recommended and the entire assignment is concluded. The primary objectives of this assignment are to understand the significance of supply chain management in business. Supply chainmanagement is an important part of beef and veal business as it deals with the administration of different supply chain related process which is crucial for the business operations as the product beef and veal are perishable(Chopra et al. 2016, p.54). Supply chain management is also comprised of many associated processes such as value chain, distribution management, option chain and supply chain finance. The entire process of supply chain management relies upon the L aw of Supply And Demand (Monczka et al. 2015, p.45). If the process of the supply chain is managed efficiently, it results in increased productivity as well as the profitability of the concerned organisation. Identification of supply chain management: The key objectives of supply chain management are to ensure different supply related activities of beef and veal production so that the customer values, as well as a sustainable competitive advantage, are achieved. It also deals with the smooth running of the business operation by guaranteeing a conscious effort (Fawcett et al. 2013, p.67). This effort ensures the productivity of the firm in most possible effective and efficient way. The process supply chain management comprises sourcing, product development, production as well as logistics. Furthermore, it also deals with the information systems which are important for coordination of the all above stated activities (Mangan and Lalwani, 2016, p.73). The fundamentals of the supply chain management of beef and veal lie on two basic ideas. Firstly, the end product or the final product reaches to the customer through cumulative efforts of several organisations. These organised efforts are collectively called as the supply chain management. Secondly, the entire success of the organisation depends on how efficiently it employs the supply chain activities (Rushton et al. 2014, p.98). Hence, supply management of beef and veal mainly comprised of the activities that ensure the right product in right place. They also have keen attention in the inventory as if the inventories are not well managed it can effect on the production. Poor management in keeping the inventory; results in hammering the production due to lack of raw materials (Coyle et al. 2016, p.85). Now, in order to up to date the inventory, the role of logistics and relation with the suppliers are important. If the relations of the organisation are good with the suppliers there will be a reliance on the quality of the raw materials. Now, logistics is needed to move the raw material to the inventory (Fernie and Sparks, 2014, p.61). The logistics also need to be planned with meticulous efforts to ensure the quality of the goods remains intact as it reaches the inventory. In order to maintain this; the organisation needs to link the physical flow of goods with the flow of information. If these two processes that are physical flow and information flow are synchronised then the entire process of the supply chain can be efficiently managed (Wisner et al. 2014, p.58). Evaluation of supply chain management: As said earlier the entire process of supply chain management of beef and veal lies on the law of supply and demands; hence, in this portion at first, the law of supply and demands are evaluated. Along with the evaluation of the law of supply and demands the different constituents of the supply chain such as value chain, distribution management, option chain and supply chain finance are discussed here. Law of Supply And Demand: The primary objectives of the law of supply and demands are to fabricate an equilibrium price. This is the price in which a producer can trade all the products that are produced in the firm and a customer can purchase all the products that he needs (Monczka et al. 2015, p.45). Value chain: Value chain is an effective model developed by Michael Porter. This model deals with the process by which the production house gets their raw material so that they can finish the product in the due time with acceptable quality (Fawcett et al. 2013, p.67). With the help of the value chain analysis, the organisation can ensure a sustainable competitive advantage over their competitors. Distribution management: Monitoring the movement of raw material from suppliers to the inventory, from inventory to the production house and from the production house to the point of sale is called distribution management (Fernie and Sparks, 2014, p.61). Along with the increase in the size of the organisation the complication in the distribution increases. Hence, in order to maintain the proper distribution management in larger organisation automation and synchronisation of physical flow with information flow is important (Wisner et al. 2014, p.58). Option chain: Option chain is the management of all the options available to the organisation and forms a list of where the information can be taken in an organised form (Rushton et al. 2014, p.98). Supply chain finance: Supply chain finance is the financing process that supports the supply chain management. Any kinds of the business transaction are associated with the financials. Thus, managing finance ensures the effective performance of the linked process (Coyle et al. 2016, p.85). Conclusion and Recommendation100: After evaluation of the entire supply and chain management of beef and veal, it can be recommended that the process of supply chain management is done as fast as possible as the product dealt with is beef and veal which is perishable. It is also important to be mentioned here that this whole process needs to be cost effective or else the final cost of the end product will increase and the equilibrium price cannot be reached. References: Chopra, S., Meindl, P. and Kalra, D.V., 2016.Supply chain management. Pearson Education. Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning. Fawcett, S.E., Ellram, L.M. and Ogden, J.A., 2013.Supply Chain Management: Pearson New International Edition: From Vision to Implementation. Pearson Higher Ed. Mangan, J. and Lalwani, C., 2016.Global logistics and supply chain management. John Wiley Sons. Rushton, A., Croucher, P. and Baker, P., 2014.The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers. Coyle, J.J., Langley, C.J., Novack, R.A. and Gibson, B., 2016.Supply chain management: a logistics perspective. Nelson Education. Fernie, J. and Sparks, L., 2014.Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers. Wisner, J.D., Tan, K.C. and Leong, G.K., 2014.Principles of supply chain management: A balanced approach. Cengage Learning.