Supply Chain Management Systems For Productivity Commerce Essay

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Now a days many companies in the world are having Supply Chain Management systems for productivity improvement and effective procedures implementation. Any company which is going to implement an integrated supply chain management system has to think of the challenges that arise out of this implementation. Challenges may be like internal co-operation and change in the work style. If they overcome these challenges then the supply chain implementation will be successful. It is not that easy that all employees will accept this change and will follow the same. Because of the existing strategies are there for years in the company. But if the leadership is strong enough to guide the employees in explaining the benefits coming out of the proposed change and the positive outcomes should be clearly explained by them to initiate the changes and retain these changes for years.

To get good idea of change management in Supply Chain Management, can take one of the MNC companies for study of change management. MNC companies will be the best examples because their supply chain is impacted by revolutionary changes. In the last few years, MNC companies have antiquated management structures.

MNC companies also have lot of problems in change management implementation and they have been facing the dislike from the employees also. But in spite of all these things, MNC companies' achievements made them to become global business supply chain management leaders. MNC companies decided to focus more on supply chain nimbleness, and in the last five years, their management structure has been changed a lot. Many companies started taking initiatives to implement supply chain management systems in their business through internet. In the initial days when few automobile companies started initiatives to implement the supply chain management system then many people have laughed about the usage of web for selling and manufacturing of the automobile products. They have adopted the supply chain strategies and are now replying on these strategies only. Automobile Company's strategies include new vehicles design using the Web, build using the web and buy using web is never imagined.

A solid global supply chain structure already is in place to ensure that this new strategy is realized. Companies have undergone a radical change throughout its management structure in the last five years. These efforts have paid off. Supply chain management implemented companies now viewed by many as one of the most innovative of the other companies, and although they still have a number of challenges ahead of them, they are making steady progress towards the real competition.

Change management is often very confusing for executives to deploy. With so many effective tools available, it is often difficult to determine which tools should be applied to what situations, and how the tools could be used in combination. For example, benchmarking, a process that has been shown to be a valuable means of learning how one company's supply chain performance compares to that of other organizations, has proven to be a valuable tool utilized in managing change in the supply chain. Through this process, companies are able to clearly identify performance gaps, and thus, focus their supply chain management efforts on the areas most in need of improvement. Yet, this is only one example of the many mechanisms that can be used to execute supply chain redesign. Other tools, such as Six Sigma, may be used to improve quality throughout the supply chain. Lean enterprise may be used to streamline processes or eliminate waste within the supply chain. But how does a change leader know which tools are most effective?

The organization being chosen to carry out such change management process analysis is the IT industry and the organization company in focus is amicably regarding MNC companies. Thus, change processes in business organizations involves the reality behind every process and is considered as a daily cycle in dealing to various issues and concerns of the organization as it depends on the managements actions and its respected change of nature in dealing with effective change management as directed at overcoming anger and resentment evolving into a program that supports acceptance and internalization. As a consultant commenting on the organizational change process choosing large organizations as the focal point for discussion and analysis for this presentation, my role to the organization is to have a clear emphasis dealing to the external and internal change drivers and other essential points needed for the realization of purpose for this report presentation for the senior management of the organizations in providing factual information that will be able to give a better substantive spontaneity of understanding of such organizational state needed for selection and the application of the appropriate management models as well as concepts per se.   

MNC companies are utilized as the model organizatiosn to review its present visions for renewed organization and how they dealt with critical situations. From the analysis, key trends in the change management strategies of MNC companies were then identified, how they worked and their effectiveness in dealing with critical situations was ascertained. When moved on to assess these change management strategies with regard to their suitability to critical situations, during which the internal capabilities of these change management strategies in relation to the strategy being followed by MNC companies was determined also. An overall analysis of the performance and effectiveness of the change management strategies was also conducted to assess and compare the capabilities of these change management strategies with those of others. Gaps in the change management capabilities and environment were then identified.

Finally, several choices of strategies to improve the change management strategies of Big Organizations as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.


More often than not, the newly merged or acquired business entities don't really have an easy time adjusting to the changes brought about by the acquisition or take-over. As a result, these entities engage in activities that are somehow resisting to changes. Therefore, the major activities of the company such as the manufacturing of products, product development, production and distribution become severely hampered.

However, change management deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often the focus of change management. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, change management includes the analysis and management of internal processes.


The mission of most companies is "to be the most successful company in the world at delivering the best customer experience in markets we serve", by means of meeting customer expectations of highest quality, leading technology and company accountability and support as well as flexible customization capability, and financial stability.

A Big organization may have approximately 40,000 - 1,00,000 employees around the globe and has a large and diverse corporate organization. Most companies have lot of computer systems in many locations that could be of high staffing cost and value that has contributed in maintaining sales and then serve as the front line in terms of selling its products and services worldwide. In human resource side, companies conduct training for all employees in order to reduce absenteeism and human errors as well because the high-quality staff is required in enhancing the best quality performance of the company.

MNC companies aim for change management in order to pursue sustainable growth as a broad market leader in several sectors as well as for segment leadership. In both cases, the company's brands will play a crucial part. MNC companies are able to establish its broad leadership usually by acquiring other strong companies and their products, which are then combined into a new, larger company.  Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various products. This practically results in economies of scale that is able to create a distribution network for both the local and international products. If a market is already in the control of other companies, MNC companies devote its attention towards the development of a premium segment with its various products.

            The vision of MNC companies for renewed organization is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company's profitability. The strategy to achieve this involves four elements:

Striving in order to reach a leading position in attractive markets

Focusing on securing a competitive share of the market segments.

Working in order to improve the company's efficiency and cut costs in operations.

Continuous growth through selective acquisitions for as long as they are able to create shareholder value. 


A. The Change for Staff

Employees basically refer to people who work for another in return for wages or salary. Legally, an employee is referred to a person hired to provide services to a company on a regular basis in exchange for compensation, and who does not provide these services as part of an independent business. However, stated that employees are more than any of those definitions. Employees are the lifeblood of the organization because they are the ones who provide products and services that define corporations, organizations and government entities. They are referred to as the most precious assets of the organization because without them, the organization is crippled and cannot function effectively.  

            Because of the important role of employees, big organizations have the responsibility to motivate them so as they can function more effectively. Theories of motivation such as Maslow's theory, Alfelder's theory, McClelland's theory, and Herzberg's theory explain why employees and staff should be motivated and why organizations should take this concept into consideration. But what really constitutes effective employee motivation? Building a positive communication with employees is important because they are the organization's best ambassadors or loudest critics, depending on how fast they get relevant information and the context in which it is received. Information consistency affects the success of the company and if it fails to communicate information internally and externally, the reputation of the company may fall. Communication basically uplifts the morale of an employee as it makes them feel that they are valued by the organization. This also builds employee loyalty and satisfaction.

B. The Change for System

There was a period when all companies were generating their first surplus which was the effect of the cost-cutting activities imposed by their management. This was the time when companies had also realized that the organization needs to pay attention on it customer service so as to ensure that the industry will continue to earn profit. In order to initiate such change, many companies hired Consultants to gather data about staff and customer attitudes. The result of such evaluation shows that there is a significant gap between what the staff is providing and what the customer actually needed. Hence, another management initiative was the change of the system from staff- oriented to customer oriented industry through the creation of "customer is king" culture within the organization.

C. The Change for Strategy

The organizational structure of big organizations also changed to a much flatter and slimmer structure. This structural alternation aims to enhance the staff integration and communication, within the companies. The performance-related pay was also introduced by the management based on an appraisal system which values the significance of customer service and organizational cohesion. This change also includes major investments in ground facilities and IT in order to adhere to the needs of its customers.


Although the management change had been able to enhance the competitiveness of big organizations, this does not mean that the company felt the changes immediately and became free from any other problems and issues. Definitely, the employees and staff took time before they became fully adjusted with the changes as they imposed a more comprehensive human resources management through its Staff Development Initiative. However, not all employees had been able to meet the objective of such initiative.  Hence, the problem encountered by those companies during and after the management change is a concrete evidence of the lengthy time that the company experienced getting accustomed with the changes.


Communication is important in big organizations because its business environment is the place where many interactions are needed, and where much information is acquired. It always involves openly competitive activity, in which working professionals in company debate issues, defend positions, and evaluate the arguments of others. Most working professionals in MNC companies, particularly those in middle and upper management, routinely produce a variety of messages, many of which are in the written form of memoranda, electronic mail, letters, reports, performance reviews, instructions, procedures, and proposals. It is also argued that a fuller understanding of organizations is a vital ingredient at every forward step of the career process, and that communication is a primary element for understanding how organizations function and how members of the organization should, even must, behave in organizations if they are to advance their careers.

             The practice of effective communication within big organizations is also linked with the development of a healthy corporate culture, job satisfaction of employees, and the happiness and productivity of employees. Communication skills are also important to the leaders of MNC companies because it helps them manage the company more effectively.

Many models for dealing with change have been developed over the years, some specifically in a business context, others at a more personal level that have, in turn, been adapted for business use.

The article nearly learns from these previous efforts, and provides a composite model that takes the best from all of them, which it calls the "Ideal Change Management Model."

The model prescribes an 8-step model, as follows:

Identifying the need and urgency for change (the why): Fact-based analysis on problems and opportunities in the marketplace or with respect to competition, customer needs, or regulatory actions.

Creating the Vision (the what): Detailing the "future state."

Communicating (20% on what, 80% on why): Development of a communication plan used throughout the project lifecycle that addresses the timing of messages, documents the level of detail for each audience type, and provides a strong, consistent meaning.

Assembling the team (who will do the work): How many, where are they located, the right mix of skills and commitment, etc.

Empowering for success (eliminating obstacles, aligning accountability): Executive steering committees are often used; ensuring the initiative doesn't fail for lack of resources, sponsorship, etc.

Mobilizing commitment (assessment, analysis, readiness, capability, training): Identify friends, foes, and agnostics towards the new program/strategy; if there are individuals who just won't support the change, they may have to be let go.

Architecting, Designing, & Measuring (the how and metrics): Align the people with the systems of recruiting, training, measuring, and rewarding to drive the new behaviors needed to support the change.

Celebrating short-term wins: Recognize accomplishments and milestones - but don't break out the Champaign too soon.

This model offers an excellent overview of change management issues and solutions, and the model providers well adds to the tool set available to supply chain managers.

In an environment in which the ability to react quickly to market and competitive changes, the ability to get the organization to move faster than the competition is perhaps the key to sustainable success.


It seems that the major cause of the problems encountered by MNC companies is due to the unplanned management changes imposed. In addition, the problems also arise because of the inadequate knowledge of its management about the use of strategic management and other management systems. This way, the MNC companies will remain unscathed amidst the advent of consolidation and globalization.