Supplier Relationship Management Essay

In last week’s reading it states, “the primary goals of SCM are (1) to optimize service quality in terms of an organization’s internal information flow processes, while reducing costs and delivery time, and (2) to achieve increased efficiencies with regard to information flows and exchanges between the organization and its external parties, including all its vendors and suppliers” (Tann & Cobb, 2010, p. 72-73). Other elements of SCM is controlling redundancy, managing contracts, obtain products, maintain operational efficiency, order tracking, purchasing and inventory of supplies, and effectively communicating with suppliers and traders (Tann et al., 2010). There are many elements of a supply chain system, and

SCM help Tesco to ensuring that the right quantity of part for the production or products that sale is arrive at the right time to their customer and also keeping the cost of transportation as low as possible when delivers to the customer. SCM is a management concept that integrates the management of supply chain processes in term of supplier management, inventory management, payment management, financial management, and distribution management. Although each department is different from its nature because some department are providing service to the customer whereas some department are produce products, each department has been controlled by their individual system respectively by adopting SCM system. This system also enables all the parties which are suppliers, customer and manufactures to check the same information at the same time when there is any changes of the information from any party will change the information from other

Procurement management is the processes to purchase or acquire the products, services or results needed from outside the project team to perform the work. Project Procurement Management involves not just purchasing products, services or results, but also ensuring that those that are purchased are right for the project, meets standards and is based on project requirements. This life cycle includes tracking from order through deployment and completing with invoice reconciliation.

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

Supply Chain Management (SCM) has been defined by Supply Chain Management Institute to be “the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders”(SCM-Institute, 2016).

Strategic Sourcing embraces several WCSM concepts and greatly facilitates progression to world-class status. It is a systematic process that directs “supply managers to plan, manage, and develop the supply base in line with a firm’s strategic objectives. Simply put, Strategic Sourcing helps organizations achieve the full potential of integrating suppliers into long-term business partners. Strategic Sourcing used by buyers and sellers help identify new types of materials and technologies available.

The average company spends nearly half of every dollar it earns on production needs—goods and services it needs from external suppliers to keep producing. A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

The power of suppliers is also analyzed and the relationship between the buyers and suppliers is determined. Managers can create strategies to reduce the cost of suppliers and create an efficient supply chain by this analysis.

The ultimate objective of SCM is to achieve a ‘strategic fit’ between the company’s competitive strategy and supply-chain strategy. This strategic fit can be achieved by Understanding the customer demand, which helps the company to define costs and service requirements and understanding the supply chain that helps the company to design and manage its supply chain in accordance with the customer’s demand. If any mismatch exists between what the supply chain is capable of doing with respect to customer demands, the company can either alter the structure of the supply-chain design or alter its strategies.

This article tells about the evolution of SCM concept and also considers the present state of supply chain management, whether it is a process, a discipline, a philosophy, a governance structure or a functional area. Here in literature review, supply chain is defined as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, or information from a to a customer, which was given by Mentzer et al in 2001 which is still true today. But there always remain a confusion in defining supply chain management. Many researchers and practitioners created their own definitions and names to describe supply chain management. All these concepts were published in many journals in those days like International Journal of Physical

Reco market tries t build strong and long term relation with first hand suppliers via “pull system”, having your suppliers closer to your business could also increase quality control, make it easier to establish long-term relationships and facilitate information sharing since it’s hard to build long-term relationship with resellers. Most companies tend to deal with a large number of suppliers, but treating them all in the same

People /Staff: All Supplier Relationship Management stakeholders mist have deep Supplier Relationship Management competences and there should be tailored Supplier Relationship Management training.

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

DIMCO may gain many advantages by implementing supply management chain. Implementing SCM can reduce problems within the company’s internal functions, external suppliers, and external distributors. Some advantages DIMCO can gain from implementing SCM are as follows; the supply chain would improve the quality of service to the end user; reduce channel cost; and create a competitive advantage. (Reid & Sanders, 2010) The implementations of SCM will strengthen DIMCO partnership with suppliers and distributors. Supply chain management can also prevent such challenges such as the bullwhip effect, caused by erratic replenishment of orders placed on different levels in the supply chain that have no apparent link to final product demand. (Reid & Sanders, 2010) An effective and efficient SCM will allow partners to share information concerning health, safety, government regulations and environmental issues. SCM will provide a common network for communications, suggestions, and feedback. This will assist DIMCO in meeting the need of customers quickly and in an efficient manner. Overall, SCM would assist in

SCM provides a clear discernment of the entire manufacturing process and also aids in planning and automating certain stages in the supply chain to develop and deliver the merchandise faster and with efficiency to the right consumer. Development and maintenance of SCM involve high complexity and costs. Due to its complex nature, often many crucial functionalities are oversized and companies face chances of mistakes in their responses.