The Supply Chain Management System

859 Words4 Pages
Supply Chain Management is defined as the oversight of materials, information, and finances as they move in a course of action from supplier to manufacturer to wholesaler to retailer to consumer. It includes numerous activities such as coordinating and integrating these flows both within and amid companies. By directing the supply chain, companies are able to cut excess fat and provide products faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company 's product purchasers, therefore completing the objective in a Supply Chain Management system by decreasing inventory. However there are risks taken by companies as the globalization of their supply chain is paired with concerns about the quality of products that are made in other countries may not meet regulatory standards, therefore puts their products in jeopardy of being recalled. This means that supply chain managers are responsible for ensuring suppliers and their products maintain safety and quality standards. Recalls or safety issues can damage a company’s reputation.

As I was reading an article online about Toyota, I realized that Toyota was in a similar situation as they recalled 7.5 million cars around the world so they can fix faulty power window switches that can potentially catch a fire. Toyota had issues using the right amount of grease to coat the switches. This malfunction has affected its consumers as it has been
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