Introduction
The outline of the essay seeks to highlight the importance of supply economy and conservation of supplies. After the onset of financial crisis, different organizations have appreciated the concept of supply management. Supply economy refers to proper use of available resources in order to limit waste and misuse of supplies. Army individuals, who deal with supplies, are responsible for ensuring proper utilization of the resources available.
Military environment has adopted the SCOR model in ensuring conservation of the supply. The SCOR model ensures the presence of a supply chain framework that is unique. The framework will facilitate linkage of processes, technologically based features, best practices, as well as metrics. Through the initiated framework, a structure is developed that will unify the factors in order to enhance communication among partners of supply chain. In addition, the framework seeks to improve the efficiency and effectiveness of the supply economy improvement and management.
Discussion
Supply economy will ensure cost control provided that the global environment is under rising pressure, especially supply chain operating costs. The costs have increased significantly due to rising freight prices, technological advancement, increasing global customers, increasing labour rates, increasing commodity prices, inflating healthcare costs and latest regulatory demands. Supply economy will control such costs through the use of a number of metrics.
As such, military should focus on those critical measures that are necessary in determining their supply chain network. There should be an evaluation of the cost management procedure applicable within the military. It will give room for the adjustment of the procedures to suit the changing opinions and circumstances. This means that the results of evaluation must be put together, fresh releases have to be distributed, and changes have to be realized.
In addition, supply economy will facilitate efficient and proper utilization of the supplies. This is facilitated by acknowledgement of receipt as consent of direct responsibility for the supplies. As a result, instances of repair, damage, loss, and destruction of the property will be minimized. Military environment can only recognize effective supply chain network if they regularly conduct an on-the-job training for their personnel.
The military personnel should be encouraged to attend training and retraining on regular and continuous basis. This will ensure that they acquire up to date knowledge and skills hence guaranteeing successful implementation of supply chain network. The personnel will gain skills and knowledge on military environment analysis as well as strategic supply chain. In addition, SCOR model in relation to management processes activities and products entails the process of looking into the current and future procurement environment, originating military goals and objectives, creating, implementing as well as controlling decisions geared at accomplishment of objectives.
The supply chain has experienced uncertainty and volatility due to inaccurate forecast and deficiencies in demand and supply. The chief hurdle faced by supply chain is due to an increased commoditization. This aspect has limited product differentiation, and its effects are more adverse than those of a decline in demand due to recession. The military personnel have vast knowledge about the market dynamics and are more willing to identify alternative supply channels.
This implies that their demand is dramatic and volatile. In order for supply chain management to be effective, it should deliver military satisfying products. As such, meeting military expectations is an uphill task for supply chain management. As such, supply economy responds to changing military needs hastily as well as the growth in the domestic and global market. Supply chain should ensure that military get right quality and quantity of products at the right price and place. Conservation of supplies will also save the economy in difficult situations that involve limited spending and tight budget cuts.
Supply economy ensures supply planning activities such as sourcing, production, maintenance, delivery, use, as well as return of merchandise for storage, repairs, or discarding. As such, supply economy and conservation of supplies act as a tool of improving the effectiveness of procurement and proper accounting of military inventory. Furthermore, it will outline methods necessary for the improvement of their inventory, as well as logistics bookkeeping capabilities. It also plays a pivotal role as a tool to aid in the evaluation of the military supply chain.
The military department should understand the immense role that supply economy plays in their day-to -day supply chain execution. This will enable them to build up supply chain network that is effective for their products and services. There is a call for military department that is integrated. This strategy will have immense contribution to efforts done by department in relation to their supply chain orientations. It will also facilitate an easier and quick project implementation and execution.
Conclusion
In conclusion, adapting supply economy and conservation of supplies in the military environment is recommended for army personnel, for it guarantees efficiency and effectiveness of the supply chain. Therefore, military department is encouraged to practice the use of supply economy in their procurement orientations with rigor. This will facilitate the achievement of sustainable competitive advantage to ensure that their desired procurements are executed properly.