Case Study : Supply Chain Management

Quality of product produced and shipped can become weaker when suppliers experience financial issues stemming from contractual performance. This happens primarily when flawed products are shipped to meet present currency requirements. Because of the fact that management is highly interested in cash flow, deliveries start to get behind schedule. Late deliveries or bad quality product is not acceptable so financial ratios must be monitored and acted upon professionally.

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Tehindo consists of various key players in their supply chain configuration, which helps with the smooth and efficient flow of products and information throughout the company. Some of these key players in key positions include the various factories across Indonesia, the distribution facilities such as the wholesalers and retails and raw material suppliers of tea leaves in which are at 3 plantations across Indonesia.

The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

Q1) In today’s business environment, no enterprise can expect to build a successful product, process, or service advantage without affiliating their strategies with those of the supply chain system in which they are heavily linked. The literature examined for the purpose of this essay identifies the many different definitions of Supply Chain Management and the overall effectiveness of supply chain management to a business in the twenty first century. This essay also highlights whether supply chain management is a passing fad or a fundamental change.

The Purpose of GSCMP requirements Management Plan is to establish how requirements will be identified, analyzed, documented and managed.

In order for IKEA to achieve design and sustainability objectives, they follow and balance four dimensions of design. The four different dimensions followed are form, function, quality, sustainability, and low price (Rafiq Elmansy, 2014). IKEA has already made changes by using cotton and water from sources that can be renewed. IKEA did this while posting strong sales figures. In 2014, its sales increased 5.9 percent from 2013 to $32.1 billion (Pantsios, 2015).

Practically the production process cannot be complete unless inputs such as raw materials and labour can be moved from different locations; neither can manufactured products be delivered to consumers, nor services carried out which emphasizes the need for an effective transport system (Rodrigue et.al, 2006).

Fundamental to any business organisation is the need to have an effective supply chain strategy (Aronsson, Hakan & Maria, 2006). This is achieved mainly by how an organisation can develop and implement its supply chain strategy. Development and implementation of these strategies may differ from one institution to another, but the general idea is the same across all organisations (Brewer, & Thomas, 2001). This article, therefore, shows the general importance of supply chain strategy to any organisation.

A crucial component of the supply chain is to have correct and accurate information as long as an open line of communication in case assistance is needed. Another crucial role in a successful supply chain is the role of management. Management is able to help things run smoothly and assist in any problems that might occur. The advancement of the business world has caused a change in how managers operate. Management can be in charge of overseeing a large number of suppliers and consumers at any given time. They are responsible for managing the supply chain and ensuring that the consumers get what they need. A firm’s good supply chain management is crucial to the success of the business and how they operate. A firm has to improve the flow of information through the chain, accurately depict business models, and efficiently manage the production, development, and delivering of goods. A successful supply chain is able to work seamlessly with other parts of the business such as sales and marketing, engineering, business development, and program management. A good supply chain management can be the difference for the success of all parts of the business.

Recognized as one of the leading computer manufacturers, Dell uses an astonishing supply chain through pull-to-order procurement and just-in-time inventory management. Their strategy is highly efficient and drives costs to a minimum while allowing for minimal lead times and production times of under 4 hours for each order as their suppliers maintain levels of inventory based on forecasts within Dell warehouses near Dell assembly

To start, Schroeder, R., Goldstein, S., and Rungtusanatham define supply chain as “the set of entities and relationships that cumulatively define materials and information flows both downstream toward the customer and upstream toward the very first supplier.” Schroeder, R., Goldstein, S., and Rungtusanatham goes on to identify supply chain management as “the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.” Organizations have to prepare themselves to the best of their ability in order to provide or their customers. Customers expect to receive the upmost service, regardless of the type of organization they make contact with.

"The ability to learn faster than competitors may be the only true sustainable competitive advantage." – Arie P. De Geus

Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay

Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.