SUPPLY CHAIN MANAGEMENT

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 Table of Content
Introduction ................................................................................................................................ 3
Importance of Supply Chain Management ................................................................................ 4
Process of Supply Chain Management ...................................................................................... 5
Benefits of Supply Chain Management ..................................................................................... 6
Factors affecting Supply Chain Management ............................................................................ 8
Importance of Globalization and its Impacts ........................................................................... 10
Importance of Technologies .................................................................................................... 10
Maintaining Proper Supply Chain Management...................................................................... 12
Conclusion ............................................................................................................................... 14
Reference List .......................................................................................................................... 15

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Introduction
As opined by Christopher (2016), supply chain is important part of any business. Christopher
(2016), further states that it is very important to have an effective and efficient supply chain
management. According to Jacobs, Chase & Lummus (2014), supply chain begins with the
supply of raw materials from supplier to the manufacturer and end with the delivery of finished
products to customers. Thus, supply chain consists of very important segment of any
organization. Hence, there is no doubt that it is very important to have a better supply
management chain. The importance of supply chain management is well recognized and
expressed by many scholars. No doubt there has been lots of research on the topic of supply
chain and its management. However, this topic has gained more importance in recent time due
to factors such as Globalization and impact of emerging technologies on supply management.
Thus, it is important to review literatures of supply management chain in order to understand
the changes and its impact on supply chain and its management.

Hence, we will not only review the opinions of scholars on what we can call a traditional supply
chain management which is known from the time of industrial revolution. Since, we already
identified that there has emerged new factors which affects the supply chain management.
Thus, we will also focus on new changes which impacts on supply management chain. We will
try to identify that whether or not the new changes has been discussed by scholars as well as
we will also investigate that in what extent has been discussion made by scholars. Further,
based on the review of literature we will draw points or topic which is needed to be discussed
in more details. In other word we will try to find out the gaps in literatures.

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Importance of Supply Chain Management
The discussion on the definition of supply chain management does not make much sense.
Since, the definition remains same in every literature. However, what is worthy to be discussed
is the importance of supply chain management. The importance of supply chain management
is well legitimized my every scholars. Yet, there are some differences in the discussion among
different scholars. As opined by Stadtler (2015), supply chain management is very vital part of
any organization and it is like a life line of the organization. Thus, Stadtler (2015), defines
supply chain management as most important part of organization in fact as a cause for survival
of organization. Yet, there is a lack of examples to demonstrate importance of supply chain
management. Hence, there is a lack of evidences or references to indicate importance of supply
chain management. So, it is important to clearly state references for clear understanding of
importance of supply chain management. Brief discussion of Porter’s Value Chain could have
been helpful in understanding the importance of supply chain management. Chou & Chou
(2012), has given a very vivid description of Porter’s Value Chain. It has helped in identifying
that how ‘Inbound Logistics’ and ‘Outbound Logistics’ plays a very significant role. This
reference makes it easier to understand that supply chain management is very prominent factor.
Another thing to be noticed is that there is not much discussion on importance of supply chain
management in context of globalization. There is no doubt the due to globalization there has
been a significant changes in business. As stated by Stadtler (2015), these changes has also
impacted on supply chain management. No doubt that supply chain management plays an
important role for organization to establish itself in global market. Hence, it is very significant
to have a better discussion on importance of supply chain management in context of
globalization.

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Process of Supply Chain Management
As stated by Hugos (2018), supply chain is not only a responsibility of one person or an
organization. There are many other people who are responsible for an effective and efficient
process of supply chain. Hence, Jacobs, Chase & Lummus (2014), states that supply chain has
a definite process. In this process there are many people and factors which plays a prominent
role. In order to maintain process of supply chain it is very significant to have a very effective
and efficient management. The process of supply chain is very distinctly discussed which
includes five steps or factors. Firstly, ‘planning’ of an effective and efficient supply chain
which begins from supply of raw materials to the distribution of finished goods. The supply
chain varies according to the nature of business. There are many factors which affects the
planning of supply chain. The most important thing to be considered in planning is the supply
chain network. The planning of supply chain network is very important for maintaining a better
supply chain. Based on the supply chain network further strategies can be made by the supply
chain management. Second step is ‘procurement’ which is also very important as the better
idea of procurement helps in planning a better supply chain network. According to Jacobs,
Chase & Lummus (2014), the next step is ‘production’ which involves process of
manufacturing or assembling materials into finished goods. This step is very important in the
sense that there could be sudden requirement of a raw material for the production. Apart from
it the logical importance of this step is that in order to distribute finished product to customers
it is important to have a better production process.

The fourth step is the ‘distribution’ of the finished goods to the customers. It is very essential
to have a better distribution channel in order to deliver products to customers for safely and
quickly. The distribution becomes more important in the case of products which cannot be
preserved for long time. Even in case of delivering product to overseas customers also
distribution becomes very important. The final step is the ‘customer interface’ which is very
important to understand demands of customer that helps in developing a better plans for supply
chain. Thus, it is to be noted that supply chain does not actually start with supply of raw
materials to the manufacturer and distribution of finished goods to customers. In fact it begins
with planning and ends with the customer interface. It signifies that now it is actually needed
to look after the concept of supply chain management in wider perspective.

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Benefits of Supply Chain Management
According to Myerson (2012), there are many benefits of an effective supply chain
management. It helps in maintaining a better business operations. Requirement of raw materials
are very essential for any organization. Thus, it is very important that raw materials gets
delivered to organization’s manufacturing unit. Hence, a better supply chain management helps
in proper accessibility of raw materials. It further helps in continuing manufacturing operation.
As mentioned by Myerson (2012), that supply chain has a definite process. In order to
effectively manage the process of supply chain it is very important to have an effective and
efficient supply chain management. Supply chain management helps in better controlling of
the process.

As stated by Myerson (2012), supply chain management also benefits in enhancing the quality
of products. As known that it is very important to have a better accessibility of raw materials
for a better production. The better supply chain management helps in accessibility of raw
materials. Thus, the effective accessibility of raw materials helps in completing the
manufacturing of product on time as well as maintain the quality of product. In some cases
there is a sudden requirements of raw materials or any specific materials for improving the
quality of product. In this case the supply chain management becomes very important. In
another scenario where there is a requirement of any material for enhancing the quality of
product and it is not available in local market or region. In this scenario it gets very difficult to
access the required material. However, an effective supply chain management could help in
overcoming this problem. Thus, better supply chain management can help in easy accessibility
of the materials which are not available in local market or region. This further benefits in
maintain or enhancing the quality of product.

According to Myerson (2012), supply chain management plays an important role in customer
satisfaction. It is very essential to have a good distribution channel in order to deliver final
products to customers. The safe and fast delivery of products is the demand of present day
market. Customers prefer to get delivery of their products as soon as possible. The emergence
and dominance of online marketing has increased the pressure of an effective distribution to
the manufacturers. Thus, it has become very important for an organization to maintain a proper
distribution which is a part of supply chain management. Myerson (2012), states that a proper
distribution channel or supply chain management helps in maintaining a goodwill of
organization among customers.

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As stated by Ross (2013), in the present day competitive market a better supply chain
management gives organization an advantage in competition. The better supply chain
management helps in completing manufacturing of products more quickly which helps in
fulfilling the increase in market demand. Better supply chain management also helps in placing
the final products more effectively and efficiently among customers. Thus an effective and
efficient supply chain management benefits organizations in competing in the market.

According to Hugos (2018), supply chain management affects the profit of organizations. It
requires lots of expenses in managing a proper supply chain. There are lots of people and
factors included in the supply chain. Hence, it is very essential to plan a proper supply chain
management in order to decrease expenses. Shepherd & Günter (2010), suggests that in the
present day competitive market it is very essential to develop a substantial supply chain. The
proper and substantial supply chain management will help in decreasing expenses in supply
chain. This will help in maximizing profit of the organization.

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Factors affecting Supply Chain Management
As opined by Ptak & Schragenheim (2016), there are numerous factors which affects supply
chain management. As known that supply chain is not the responsibility of only one person or
company rather there are many people and factors included in the supply chain. Thus, supply
chain management is influence my many different factors.

As stated by Ptak & Schragenheim (2016), the primary factor which affects the supply chain
management is the role of the management. Management is responsible for managing process
of supply chain which includes planning, gathering resources, distribution of final products and
customer interface. Thus, it is very essential to have an effective and efficient supply chain
manager to maintain a proper supply chain. It is necessary that management have a keen
knowledge of concept of supply chain. There could be sudden crisis or rise of any unfamiliar
situation in supply chain. In such scenario an ineffective management could result in creation
of worse condition. However, a proper management could help in overcoming any unfamiliar
situation. Hence, role of management affect the supply chain management.

Another factor that affects supply chain management is stakeholders. Stakeholders includes
suppliers of raw materials to the customers who purchase final products. Change in demand of
customers or any dispute or miscommunication with suppliers of raw materials could affect
supply chain management disastrously. In case of suppliers if there is any miscommunication
that will result in delay of raw materials. This will further result in delay of manufacturing
which could be very disastrous for organization. Equivalently, in case of customers the change
in their demand or their dissatisfaction with products could also impact disastrously to
organizations. Hence, there is no doubt that stakeholders affect the supply chain management.

As opined by Ptak & Schragenheim (2016), macro-economic factors are very important and
needed to be taken into consideration in supply chain management. As stated by Ptak &
Schragenheim (2016), macro-economic factors includes political, economic, social,
technological, legal and environmental factors. These factors implies important impact on
supply chain management. Especially in context of international market these factors become
more important as they varies in different countries or regions. As an example we can take
political factor for understanding that how it affects supply chain management. In different
countries there are certain taxation imposed on transportation of goods. Due to these taxations
there is a difference in expense in supply chain. It is important to recognise expenses in order
to maintain a proper accounts. It is also to be noted that the supply of certain products are not

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allowed in few countries. Hence, it is also important that supply chain management makes a
plan to compensate the lack of supply of concerned products.

As suggested by Ross (2013), the impact of globalization and technology should not be ignored
in context of supply chain management. Ross (2013), further states that both globalisation and
technologies are among important factors that affect supply chain management. There are many
different ways by which these factors affects supply chain management. For an example the
globalization has resulted in expansion of business. Thus, business are no more regional or
local as organization focuses on making their business globalised. As opined by Ross (2013),
there are both merits and demerits of globalising the business. Globalization will make it
difficult for organization to meet its demand for supply of raw materials in foreign countries.
It will also become a difficult task for supply chain management to maintain a proper
distribution of products to customers.

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Importance of Globalization and its Impacts
As opined by Hugos (2018), globalization has resulted in many changes in the market. In order
to maximize the profit it has become important for organization to expand their market. This
expansion of market results in decision of globalising products in different markets or
countries. There is no doubt that it is important for organizations to expand their business in
order to increase profit. However, as opined by Hugos (2018), there are both merits and
demerits of globalization. It impacts directly on supply chain management due to the fact that
there is a need of making certain changes in supply chain for establishing in foreign markets.
The expansion of market will result to increase in supply of raw materials. In case organization
makes a decision of installing a manufacturing unit in foreign countries then it gets important
to analyse availability of required raw materials in foreign countries. Suppose there is a lack of
availability of raw materials in foreign countries then organization need to depend on supply
from home country or any other alternative countries. Thus, this increase the burden of supply
chain management. It is also worthy to be discussed that how distribution of products to
customers could also impact supply chain management in context of globalization. Suppose,
organization have no manufacturing unit or storage in foreign countries than it has to directly
deliver products to customers. The distribution or delivery of products to customers of foreign
countries is not similar to distribution or delivery of products in home country. Hence, supply
chain management have to make a special arrangement or develop a proper strategies in order
to distribute or deliver products in global market. So, Hugos (2018), rightly states globalization
impacts supply chain management.

Importance of Technologies
According to Ptak & Schragenheim (2016), technology plays an important role in supply chain
management. Technological advancement has resulted in changes in business activities. Ptak
& Schragenheim (2016), states that it is very important to utilise the technology for enhancing
the supply chain management. Technology helps in making supply chain faster and safer.
Many new technologies been delivered which can help in enhancing the supply chain
management. Example of a technology which helps in enhancing supply chain management is
tracking of products been delivered. This technology is used in online shopping where the
details of products been dispatched is updated frequently that helps in tracking products been
delivered.

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Maintaining Proper Supply Chain Management
As suggested by Hugos (2018), it is very important to maintain a proper supply chain
management. Supply chain management plays many important role in business operations.
Thus, it is very essential to maintain a proper supply chain management. According to Wolf
(2014), there are different ways of maintaining a proper supply chain management. The
primary way of maintaining a proper supply chain management is to have an effective and
efficient managers. There are many risks in supply chain and in order to decrease those risks
and to maintain a proper supply chain managers play a very significant role. In case of
emergence of unfamiliar scenarios it requires a skilled and experienced managers to eliminate
or decrease consequences of such scenarios.

As opined by Stadtler (2015), stakeholders play a prominent role in context of supply chain
management. Thus, stakeholder impacts on supply chain management. Hence, in order to
maintain a proper supply chain management it is very important to give consideration to
stakeholders. It is required to have a better communication with suppliers of raw materials. The
miscommunication with suppliers could create a problems for organization and lead to delay
in supply of raw materials. This will further result to delay in manufacturing. Hence, a better
communication with supplier helps in minimizing chances of such consequences. It will also
enhance a better cooperation with suppliers of raw materials which will help in maintaining a
proper supply chain management. Not to be ignored are customers who are primary stakeholder
in any business. In order to maintain a proper supply chain management it is also important to
understand customers. The proper understanding and segmentation of customers will help in
maintaining an efficient distribution which is an essential part of supply chain.

As stated by Stadtler (2015), macro-economic factors affects the supply chain of an

organization. It gets more prominent in context of globalisation due to the fact that macro-
economic factors differs in different countries. Hence, in order to maintain a proper supply
chain management it is essential to have an understanding of macro-economic factors. The
detail analysis of macro-economic factors could help in improving a supply chain or rather
maintaining a proper supply chain management. The understanding and study of macro-
economic factors will help in developing a better planning for supply chain. This will further
minimise probable emergence of unwanted consequences.

As suggested by Ptak & Schragenheim (2016), technology also plays a prominent role in
context of supply chain management. It will help in maintaining a proper supply chain

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management. Use of technology will help in making supply safer and faster. In case of online
shopping we can analyse the use of technology in supply chain management. In this context
organizations use technology to keep a proper track of products which are delivered to
customers. The tracking does not only helps organisations but also help customers to track their
product. It also enhance the satisfaction of customers as customers feel more secure by tracking
their products. Technology can be used in many different ways to maintain a proper supply
chain management.

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Conclusion
The reviewed literature has provided enormous information in context of supply chain
management. The various aspects of supply chain management has been discussed. It includes
importance of supply chain management, process of supply chain management, benefits of
supply chain management, factors affecting supply chain management and maintain a proper
supply chain management. Enough discussion on these factors has been done in the reviewed
literatures which provide enormous details regarding supply chain management. However,
there are some gaps in the literatures. Firstly, there is a lack of primary data as there is an
ignorance in attempt of taking views of stakeholder in consideration. Hence, the opinions of
stakeholder are missing in the reviewed literature. It is important to have an opinion of
stakeholder in context of supply chain management as they are most important factor. The data
collected as a primary source from stakeholder would have helped in better analysis of supply
chain management. Another gap is the lack of contemporary or latest information especially in
context of globalisation and technological advancements. It is noted that both globalisation and
technological advancement plays a very significant role in supply chain management. Hence,
it is required to be up to date about both factors. In context of technological advancement it
gets more important to be up to date due to the fact that there are availability of new
technologies in market frequently.

It is to be noted that globalisation has brought a tremendous changes in business practices. The
changes can also be recognise in supply chain management. Thus, it is very important for
present day supply chain management to be aware of changes taking place in the markets. In
order to remain updated it is very important to have a reliable data in terms of literature. Thus,
it is important for scholars or researchers to do more deep research and pay more focus on
primary data rather than secondary data. Hence, it is suggested to do latest researches in context
of supply chain management and give better consideration to primary data.

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Reference List
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.

Chou, D.C. and Chou, A.Y., 2012. Awareness of Green IT and its value model. Computer
Standards & Interfaces, 34(5), pp.447-451.

Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.

Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Myerson, P. (2012). Lean supply chain and logistics management. New York: McGraw-Hill.

Ellinger, A., Shin, H., Magnus Northington, W., Adams, F. G., Hofman, D., & O'Marah, K.
(2012). The influence of supply chain management competency on customer satisfaction and
shareholder value. Supply Chain Management: An International Journal, 17(3), 249-262.

Shepherd, C., & Günter, H. (2010). Measuring supply chain performance: current research and
future directions. In Behavioral Operations in Planning and Scheduling (pp. 105-121).
Springer, Berlin, Heidelberg.

Ptak, C. A., & Schragenheim, E. (2016). ERP: tools, techniques, and applications for
integrating the supply chain. Crc Press.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.

Carter, C. R., & Liane Easton, P. (2011). Sustainable supply chain management: evolution and
future directions. International journal of physical distribution & logistics management, 41(1),
46-62.

Ross, D. F. (2013). Competing through supply chain management: creating market-winning

strategies through supply chain partnerships. Springer Science & Business Media.

Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.

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Wolf, J. (2014). The relationship between sustainable supply chain management, stakeholder
pressure and corporate sustainability performance. Journal of business ethics, 119(3), 317-328.

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