Supply Chain Mgt

Jessica Marchesano

Unit 1 IP

MGT436-0603B-01

Supply chain management can be defined as the integration of the links to the supply chain which begin with supplier to manufacturer to wholesaler to retailer to the consumer. Integrating them in a manner from planning through implementation to the continued management of them. It can also be defined as managing the flow of the business from the raw materials coming in all the way through the finished good being used. Four major links of the supply chain or components are demand, logistics, manufacturing, and supply. Although these four different components play different roles in supply chain management they all have one common goal which is to increase lead times in the most cost effective manner possible.

Demand begins with the customers and what product they want. It comes from the end user who purchases in the store to the retailer selling the product. If the shelves empty fast or customers continue to ask for a good in the latter part of a season demand is considered high for that particular product. Through these demands a forecast is created, usually by the sales department, for future sales of particular goods. Upon having knowledge of this demand the company can prepare itself for production and cash flow situations ahead of time. This demand also creates inventory levels at particular warehouses based on region. Again the company can be prepared for what is needed and where. Demand can also be predicted through trend or history of a retailers buying over the past years. With demand seasonal and economical scales must be considered as well. If a product is based on either and there is a change sales could fall or increase. For example a company that sells a summer item used in the heat; depending upon what the humidity and length of summer is going to be could help determine a good or bad sale season based on demand.

Logistics plays a big role because this is what each link is connected by. Logistics moves the raw materials from supplier/vendor to manufacturer then the finished goods are moved to a storage facility. From there the goods are moved to a distribution center and then moved again to the retailer for final distribution to the consumer. If any leg of travel is delayed or done improperly the risk of losing customers at any link of the chain is high. There are also potential damages and loss of product if the right logistics are not relied upon. Logistics isn't only about the transportation of the goods but the storage of them as well. Having storage warehouses in convenient locations where majority of distribution centers or direct retailers can be reached in a matter of 2-3 business days displays quality customer service. Also being able to get the raw materials to a manufacturer quickly is important to get finished goods completed and out the door in a timely manner. Many organizations take it upon themselves to supply their own transportation and not rely on a logistics company to handle their freight, this ensures accuracy to a customer as well as procedure being handled how they like it.

Manufacturing plays a big role along the supply chain; this is how the products are made, when, and in what quantity. Manufacturing relies on a lot of unreliable sources and can be very unpredictable. It is relying first on workers that they show up each day with the desire and ability to produce. It relies on machines and tools to work correctly in order to produce. It also relies on these two factors to make the quantity needed to fill orders in certain time periods. If people don't show up or are not capable to make the product correctly there is risk of defects and malfunction. If