Supply Chain Efficiency
Supply Chain Efficiency
Running head: SUPPLY CHAIN EFFICIENCY
Supply Chain Efficiency Paper
Researched Companies
Wal-Mart, Circuit City, Dell, Eastman Kodak, SC Johnson, ArcelorMittal, Cisco and FedEx
MBA550
University of Phoenix
Supply Chain Efficiency: Overview
The power of having an efficient supply chain is more important now than ever. As companies strive for competitive advantage, they look to the efficacy of their supply chain management in order to move ahead of their competition. “Inventory management involves planning and controlling inventory from the raw material stage to the final delivery at the customers end” (University of Phoenix, 2008). Companies can identify domestic and global best practices by assessing existing efficient supply chain management strategies. Evaluating opportunities for improving operations becomes imperative and analyzing ethical issues among supply chain stakeholders a must. “It is important for managers to realize that how they run items using inventory control logic relates directly to the financial performance of the firm” (Chase et al, 2005, p. 605).
One of the most efficient tools in evaluating opportunities for improvement is benchmarking. “Benchmarking, when used properly, can lead to significant increases in supply-chain efficiency,” according to Leonard Sahling, first vice president of research for ProLogis (ElAmin, 2007). In short, effective benchmarking can provide a huge competitive advantage in the marketplace. The following companies have been benchmarked in an effort to provide a best practice overview of their supply chain capabilities: Wal-Mart, Circuit City, Dell, Eastman Kodak, SC Johnson, ArcelorMittal, Cisco and FedEx. Many companies today are striving to create best-in-class supply chains, with the aim of achieving a substantial improvement to their bottom lines and gaining a competitive edge over their rivals,
Identifying Domestic and Global Best Practices: Supply Chain Management (Amy)
Assessing Existing Supply Chain Management Practices
A competent and alert supply chain can be a deliberate differentiator in any company whose merchants are a significant piece of the produce they transport. Supply chain best performance can not only lessen price and advance limitations, but they can also establish ones organization as a leader in their current market eyes with regards to time-to-market, customer service, accuracy of delivery, ecological support, and numerous other reasons.
Supply chain managing relates to all built-up manufacturing: apparel, furniture, food and beverage, automotive, paper products, pharmaceuticals. All of these organizations look to optimize their supply chains. Supply chain can also submit to the supply of tools or even a service business like a car rental company. Supply chain managing consists of interior invention, preparation and logistics means, as well as associations with merchants. Normally, it occupies all resources and repair components from the suppliers dealer to the customers client. By realizing the tools such as price cutback, delivery and quality enhancement, or encouragement of ecological development within the merchant requirements, of supply chain management. An organization will affect much more than just the supply chain. Improvements will be visible in general output inside and outside the corporation. Bottom line is that chasing supply chain fineness is a constant progression in the majority of corporation and is well merit the attempt.
Evaluating Opportunities: Supply Chain Operations
An important tool of evaluating opportunities for supply chain improvement is benchmarking because of the difficulties in making supply chains efficient are compounded as companies become more global and hence more complex. The hallmark of best practice companies is a conscientious and disciplined approach to learning and continuous improvement. “Companies that eschew rigorous benchmarking exercises are destined to lose their way in the competitive fray – and become second-rate performers” (ElAmin, 2007). Benchmarking is a way of improving performance by identifying, understanding, and adapting the best practices and processes found inside and outside an organization.
Another useful tool for evaluating supply chain opportunities is forecasting. “Forecasts are vital to every business organization