Modern Techniques And Changes In Supply Chain Management Business Essay

1036 words (4 pages) Essay

1st Jan 1970 Business Reference this


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Supply chain Management is about the management involved in the network of interconnected business model in the supply chain of products and services required by the end consumers (Customers). SCM has its span of control from purchasing the raw materials, WIP inventory (Semi-Finished) and till the final goods (i.e.) from the initial point to final consumption by the end users.

Nowadays in a global scenario the companies recognize the research value of SCM. And tends to analyze the various ways to meet the unimaginable rise in the demand from the customers side with a minimum operation cost involved in it. Earlier the manufacturers are the states of drivers who manage the product manufacturing and the pace of distribution but now a day the customer plays the prominent drivers of supply chain were as the manufacturers are trying to meet the demand. SCM has became the common melting point which influence various aspects in the channel such as procurement , inventory , transportation , manufacturing , distribution , IT management and marketing to enhance the supply chain strategy for obtaining the cost effective performance.

Literature Review:

As mentioned in the above statement the new perspective of looking the supply chain management has been emerging and lots of topics has been reviewed on it. According to (Xiaoqiang Chai and Jian chai, 2013) that basically the producers produces the products and distributes through the 3PL third party logistics (i.e.) the producers sells it wholesalers and from wholesalers to the distributers and then they sells the final product to the end customers. The lifecycle of the product (quantity and quality) may be deteriorating during the transportation process. Thus the incentive scheme has been highlighted to co-ordinate the supply chain. The scheme had two contracts that is wholesale market clearance (WMC) contract between the manufacturer and distributor and (WDS) Whole sale Price discount sharing between the manufacturer and the 3PL providers. This contract can eliminate the “double marginalization” between the 3tier supply chain and helps the three parties to work in the better co-ordinate way.

In this (Guillen Gosalbez and Grossman , 2009 & 2010) has addressed the design and planning of forward supply chain operations considering the uncertainty in the life cycle inventory of the supply chain operations (i.e.) the forward supply chain management will intend towards the overall supply chain process from the identifying suppliers, procurement , warehousing , Manufacturing and until selling to the end users. The proper designing in the above defined process will enhances the overall output efficiency of the supply chain.

On the other hand, supply chain structure ( Fleischmann , 2011) studied on the reverse supply chain which can achieved through the reverse process such as repairing , remanufacturing and recycling the used finished goods from users. The Reverse logistics studies has been analyzed and arrived at a conclusion that the focus only on the certain aspects and no holistic analysis on the complete reverse logistics have been performed. The integrated supply chain which fuses the Forward SCM and Reverse SCM is known as the closed loop supply chain (Jayaraman , 1999) developed a model to identify and analyze the optimal number of operation facilities to be started for the effective reverse logistics.

In the Supply chain risk management (Tang) has modeled the framework which can be sub-classified as four approaches in supply risk management: Demand management, Supply management, Product management and Information management. In this the nature and the quantitative impact of the risk has to be analyzed. The company can opt for multi-suppliers and it can maximize the inventory in order to prepare for disruptions. The extensive work for identifying the optimal inventory level for manufacturers is spearheaded to reduce the risk level involved.

Modern Techniques and Changes in Supply Chain Management:

In the recent years the emerging growth and perspective view towards the Supply chain management is modernizing. In particular the environmental concern towards the recovery of products is accounted in the manufacturers (Producer) responsibility which has lead to the contributing combination of authentic supply chain networks with activities such as reverse logistics.

In general the functional model of the forward supply chain initiates from the Tier 2 suppliers who ensures the supply of raw materials to the Tier 1 suppliers where as the

Tier 1 suppliers produce semi finished parts from the raw materials. The manufacturer assembles the semi finished parts from Tier 1 suppliers and ensures it into final finished product and then it will be transported to the distributors. The distributor distributes the finished products to the retailers where as the retailers sells the product to the consumers.

In the Reverse logistics the function model service is extended from the above model as of collecting back the used finished products, assembling the products into parts and feeding the parts back into the supply chain process (Repair – Remanufacture – Recycle). And this can be achieved by opening the optimal number of facilities for the reverse logistics functions.

However in the supply chain management which handles both the Forward and Reverse supply chain activities are denoted as closed loop supply chain. In this closed loop supply chain the functional activities of both the forward supply chain and reverse supply chain are co-ordially combined as a whole functional process in the supply chain.

In this era due to globalization and competition in SCM the automation came to the existence with the focus on the IT management. CSIM is an integrated tool used in the Constructional supply chain management. This above objective is supported by the BIM

(Building Information Modeling) and GIS (Global Information System) which enables the process of tracking and provide warning signals in the system to ensure the delivery of materials.

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