There is a need to systematize the processes in departments constituting the supply network. Organizational supply chain entails synchronizing all of the processes, including fabrication, supply and purchase, in an all-inclusive way (Mentzer, 5). The supply chain entails groups, individuals, assets and expertise, which are necessary in the transfer of products and services from the creator to the end-user.
An organization must have complete visibility of the systems which represent its supply chain. SCM is a wide-ranging management technique of monitoring all the constituent companies involved in the fabrication of products. It involves the fabricator, suppliers, the purchaser and the disposer of the used products, who are involved in a network of events which are interconnected (Inman).
The holistic network ensures the fulfillment of customer requirements by identifying the desired products, forms of packaging and their necessity in the market. The desire to create a competitive edge in business has increased the competence of the supply chain, coupled by scientific advancements, like computers and the Internet, which assists in screening larger physical scopes (Mentzer, 6).
However, the difference between having a supply chain in an organization, and the effectual management of the network should be clear, to amplify production and fabricate results for the organization. Larger companies commonly have a larger and composite system involving larger environmental spaces.
The impression of SCM has been incorporated in several organizations with a yearning to accomplish success in operations. It aims to combine the efforts of the supplier, maker and user in producing higher-quality products, and draw and keep customers (Dean). Its management enables better interactions between the units at hand in the association. Thus, affiliations are formed for the upgrading of all the organizations.
Proper administration enables the organization to execute its duties much sooner and efficiently without compromising the expectations of customers and escalating any costs (Dean). Presently, companies do not measure their realization through the conclusion of a solitary dealing, but rather look at the intact network which enhances sustainable fabrication. The SCM would, therefore, impact the way businesses interrelate, shifting from the contest to realize profiles to improving competition in the total system.
Valuable application of SCM has been verified to increase the revenues of some organizations, increase mechanical novelties, reduce the risks involved in networking, and appreciably lead to higher productivity. It improves the promotion methodologies used by companies, increasing the objective market and creates better revelation for their products (Green, Inman and Whitten).
The SCM practice is however faced with challenges ranging from ecological factors and procedural progresses to the increasing weight of customers (Lim, Tracey and Vonderembse, 7). Apt execution of SCM enables the foreseeing of these confrontations, and the submission of more strategies to realize more openings in the surroundings.
Wal-mart is among the principal retailing outlets in the orb, a fact attributed to their ample supply chain (Chandran, 2). The company has thousands of stores aside from the abundant online transactions it conducts. The organization strives continuously to reduce process costs, progress sales, use newest circulation technologies and utilize professional allocation channels.
The group displays first-rate SCM in the progress of the need for lessening of procurement costs, while maintaining reasonable prices for their consumers. The administration has spent vast assets in considering its vendors and how they set their prices. The processes in the association are done in transparent means, in order to build confidence and reduce contract costs. Long-standing relationships are maintained with clients in the event of flourishing interactions. Their preference of regional suppliers further improved these bonds. These dealings contributed to the improvement of the social structures, thus furthering the appeal to, and preservation of customers.
Wal-mart engages its employees in formatting the right advancement to apply SCM in diverse market structures. The expectations of consumers and the available infrastructure in the section control the spotting and positioning of their delivery channels (Smalltree). Acquiescence with restricting regulations presents better opportunities for extension regarding the configuration of the supply chain.
Works Cited
Chandran Mohan. Wal-mart’s supply chain management practices. ICFAI center for Management research, 2003. Web.
Cohen, Shoshanah. The new supply chain organization. PRTM, 2006. Web.
Dean, Elmuti. “The perceived impact of supply chain management on organizational effectiveness”. All business: Journal of supply chain management, 2002.
Green, K. Inman, A and Whitten, D. “The impact of logistics performance on organizational performance in a supply chain context”. Supply chain management: an international journal, Vol. 13 Iss: 4, pp.317 – 327.
Inman, Anthony. Supply chain management. Reference for business: encyclopedia of business, 2nd ed, 2010.
Lim Jeen-Su, Tracey Michael and Vonderembse Mark. The impact of supply-chain management capabilities of business performance. Research paper. Supply chain management: an international journal 10/3, 2005, 179-191.
Mentzer, John. Supply chain management. California: SAGE, 2001, pp. 4-9.
Smalltree Hannah. Supply chain management best practices from Wal-Mart take center stage at CSCMP. Manufacturing ERP/SCM/IT news. Web.