Strategic importance of supply chain management, Microeconomics

Assignment Help:

Strategic Importance of Supply Chain Management

This describes the scope of supply chain management (SCM), including the management of procurement, logistics and materials. It explains the importance of just-in-time ideas and techniques and discusses the evolution of the supply chain. Supply chain strategies including global supply chain issues and e-business are also covered. The key objective of supply chain management is to provide customer satisfaction by having the correct product in the correct place at the correct time. Competition worldwide is increasing. Creating customer satisfaction is important to most companies. The concept of satisfaction has multiple dimensions. These dimensions contribute to a feeling of overall satisfaction and are made up of considerations of: ?

  • cost - what customers receive for what they paid ?
  • convenience - the effort expended to achieve the purchase ?
  • confidence in the support services both included and promised

 

In an age of global markets, supplies and competition, the ability to satisfy and retain customer loyalty is no longer a simple marketing proposition. Back office operations are vital. Firms currently strive to increase competitiveness by providing customisation, value for money, quality and service. Customisation of the service component may for instance include speed to market or responsiveness to customer enquiries. Consider Amazon.com, which provides books selected from the internet store delivered to your door (within a stated time period). The marketing proposition is simple and based on convenience. The same product could be purchased from a bookshop. If the back-office operation of Amazon either takes six weeks to deliver the book once ordered, or fails to meet a promised delivery date, then the probability is that the customer would be dissatisfied. The same applies to FedEx with its delivery next day before 10am promise. Speed is becoming an important aspect of service provision. McDonald's controls its supplies along the entire length of its supply chain from meat purchasing and paper cups to 28,000 franchise outlets worldwide. 

For major companies operating in global markets, the stakes are high.

Managing the supply chain offers the capability to create and reach markets before competitors, and achieve competitive advantage by providing increased customer satisfaction through delivering the right product at the right time at greater value for money as a result of reduced overall cost. The purpose of operations is to support business strategy while the purpose of supply chain management is to support the operations strategy.


Related Discussions:- Strategic importance of supply chain management

What is fait money, Fiat money is what is regular in modern economic system...

Fiat money is what is regular in modern economic systems.  Fiat money is money that is described as legal tender by either a government or some organization with the authority to e

How many wokers should the firm hire(need help now!!plzz), Labor Total Out...

Labor Total Output 1 30 2 50 3 60 4 75 5 80 a) If the price of the firm’s output is $12 per unit and the wage rate is $100 per worker, how many workers should the firm choose to

Homework blues, Is it possible to get an expert to check my homework before...

Is it possible to get an expert to check my homework before I submit it?

Marginal product, I am having a hard time figuring out how to find marginal...

I am having a hard time figuring out how to find marginal product.

Hypotheses in fdi, The following hypotheses are concerned with the general ...

The following hypotheses are concerned with the general impact of FDI from Costa Rica trading partners on exports from the technology sector:  H1:   There is a positive signifi

Inflation, inflation and policies that are used to combat it

inflation and policies that are used to combat it

Aggregate supply, Aggregate Supply When referred to in the circumstanc...

Aggregate Supply When referred to in the circumstance of GNP or GDP, aggregate supply refers to the labor and capital needs to proceeds the level of products and services need

Calculate the expected value, 1) Investments 1A) What are the ...

1) Investments 1A) What are the two components to total return ?  What does expected value measure?  What does standard deviation measure?  How can each result be

Axioms of consumer preference, determine if completeness and transitivity a...

determine if completeness and transitivity are satisfied for the following preferences defined on x=(x1,x2)and y=(y1,y2);if x>y or x=y and x2>y2,if for min{x1,x2}

Explain the term returns to scale, An increase in the scale means that all ...

An increase in the scale means that all inputs or factors are increased in a given proportion. Increase in the scale thus occurs when all factors or inputs are increased keeping fa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd