Supply Chain in the Context of Logistics, Essay Example

Supply chain management (SCM) is a debatable topic. It is gaining popularity and value. As per the practitioner’s point of view, it is most likely a vital process for surveyed executives. Moreover, SCM is a frequently discussed topic between researchers and practitioners, as it was illustrated to be the only topic with a rapid surge on articles published on the Internet (Naslund & Williamson, 2010). The rationale for gaining significance is its value, as organizations rely on processes of supply chain management, which is a core element and contributing factor, for gaining competitive advantage in the global market. SCM is a logistic network that is constructed on four elements i.e. suppliers, manufacturers, warehouses / distribution centers and customers. Likewise, the raw material, work-in-progress inventory (WIP), finished products flows and communicate between these four elements. The ultimate goal is to produce and distribute the manufactured goods in adequate quantities, to the correct locations and at the accurate time. However, there are certain factors that may lead to highlight difficulties in supply chain management processes. For instance, uncertainty may cause issues related to travel times, scheduling of transportation including vehicles and machines, weather forecasts, natural disasters, war, politics, labor issues etc. Similarly, in the same context military supply chain management networks are multifaceted as they are globally located and are managed by conventional and regulatory processes. Moreover, the management of these networks is convoluted due to segregating responsibilities for command, across different levels in the supply chain management network. Likewise, frequent promotions and job rotation in a rising-cost environment is a challenge. A security definition in the context of SCM is defined as “The discipline of contingency planning for any authorized delay, diversion, compromise or other related incident that could create a negative disruption or cost to a company’s flow of material, data or payment across international borders, from the point of conception to final delivery.” (Peck, 2003).

References

Naslund, D., & Williamson, S. (2010). What is management in supply chain management? – A critical review of definitions, frameworks and terminology. Journal of Management Policy & Practice, 11(4), 11-28.

Peck, W. G. (2003). The real definition of supply-chain security. Journal of Commerce (15307557), 4(45), 13-13.