SCM Supply Chain Management Is Essay
- Length: 8 pages
- Subject: Business
- Type: Essay
- Paper: #46042546
Excerpt from Essay :
Overall the proper supply chain management system provides a company with an obvious competitive advantage.
Improvements to this system, supplier certification
This particular system has been quite advantageous for Dell and other companies. However, all supply chain management systems can be improved. One of the changes that can be made is an increase in the options that are available to consumers. Increasing such options will increase customer satisfaction and lead to greater customer loyalty. In addition this improvement can lead to an even greater competitive advantage for the company.
As it pertains to supplier certification all supply chains benefit greatly when suppliers are certified. As it pertains to quality management the ISO 9000 standards are often sought after. These standards provide companies with certain guidelines that are designed to assist them in attaining total quality management. As it pertains to supply chain management these standards are important for suppliers because they ensure uniformity in what suppliers produce.
"When the large majority of products or services in a particular business or industry sector conform to International Standards, a state of industry-wide standardization exists. The economic stakeholders concerned agree on specifications and criteria to be applied consistently in the classification of materials, in the manufacture and supply of products, in testing and analysis, in terminology and in the provision of services. In this way, International Standards provide a reference framework, or a common technological language, between suppliers and their customers. This facilitates trade and the transfer of technology ("What international standardization means")."
ISO provides many benefits. These benefits are apparent in suppliers that are ISO certified. These benefits include the following:
1. Ensures that the creation, manufacturing and delivery of products and services more proficient, safer and cleaner (ISO Standards)
2. Encourage fair trade between countries (ISO Standards)
3. Supply governments with a technical foundation for services such as health and safety. ISO also provides governments with guidelines associated with environmental legislation, and conformity assessment (ISO Standards)
4. Communicate concerning technological advances and successful management practices (ISO Standards)
5. Spread innovative practices (ISO Standards)
6. Protect consumers as it pertains to the products and services that a company or an organization offers. (ISO Standards)
7. Simplifying life by offering solutions to frequent troubles (ISO Standards)
The ISO 9000 series of certifications ensure that suppliers meet certain universal standards related to the products and services that are offered. This certification is important because it guarantees that certain quality standards will be met. The certification allows other businesses and consumers to know that the supplier has high standards. Suppliers with such certifications are more likely to gain the business of consumers.
The purpose of this discussion is to describe and evaluate the current system for supplier assessment, selection and evaluation. The research focused on late/mass customization in the computer industry. More specifically the research focused on this supply chain management system as it pertained to Dell computer Corporation. The research revealed that this particular supply chain management strategy has provided dell with a substantial competitive advantage. According to the research the mass customization strategy has three primary benefits: it reduces costs, allows for market exploitation and increases profitability. Consumers are attracted to the product provided by Dell because they are highly customized and the cost is comparable to similar products that are not customized.
The research also discussed how the system could be improved and attention was given to the role of supplier certification in the system. The research suggest that the supply chain management strategy might be improved of consumers are presented with a greater array of options. The research indicates that the IS9000 certification can be quite beneficial to suppliers. This certification provides companies with the proper amount of accountability as it pertains to the implementation and management of a total quality management strategy. The international and universal standards associated with this certification are essential and can serve to greatly improve a supply chain management strategy. The ISO certification provides a foundation for the implementation of services and products for businesses and governments throughout the world.
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From the supplier to the store shelf. "Supply Chain transformation for retailers and wholesalers. Retrieved September 7, 2009 from: http://www.logisticsasiapacific.com/main_images/PDF/FromSupplierToShelf.pdf
Hunter D. (Dec. 16, 2005) Tying Supply Chain to Customers: How Dell succeeds in an increasingly competitive market. Retrieved September 7, 2009 from: http://www.industryweek.com/articles/tying_supply_chain_to_customers_11124.aspx
Kaplan a.M., Schoder, D. And Haenlein M. (2007) Factors Influencing the Adoption of Mass Customization: The Impact of Base Category Consumption Frequency and Need Satisfaction. The Journal of Product Innovation Management. 24:101 -- 116
Powell T.C. (Jan., 1995)Total Quality Management as Competitive Advantage. Strategic Management Journal, Vol. 16, No. 1, pp. 15-37
"What international standardization means." Retrieved September 7, 2009 from: http://www.iso.org/iso/about/discover-iso_what-international-standardization-means.htm
"What Standards do." Retrieved September 7, 2009 from: http://www.iso.org/iso/about/discover-iso_what-standards-do.htm