¶ … Improvement of Supply Chain Management Tools and Processes for Ultimate Strategic Achievement of Success in Military and Civil Business
Today, both public and private sector organisations of all sizes and types are faced with the same need to optimize their supply chain management processes to the maximum extent possible in order to achieve and sustain high levels of performance and productivity. Because supply chain management systems are frequently highly complex, it is vitally important to understand how these systems operate and what factors contribute to their successful management. Moreover, innovations in information technologies have changed the manner in which companies manage their supply chains, but these innovations have introduced yet additional management challenges. In this environment, identifying opportunities to optimize the supply chain management process represents a timely and important enterprise. To this end, this study reviews the relevant literature to provide an overview of supply chain management and the importance of effectives supply chain management practises and a discussion concerning developing and maintaining good supply chain relationships with partners. In addition, an assessment of recent and current trends in information system and technology application requirements for supply chains is followed by an analysis of new initiatives and applications that are introduced in military organizations and the differences between performance achievement in military and civil sector organizations. Finally, an examination of the importance of supply and integrated logistical systems for achieving strategic objectives in military organizations and in comparison with the civil sector is followed by a summary of the research and important findings concerning these issues in the study's concluding chapter.
Table of Contents
Chapter 1: introduction to Supply Chain Management
Chapter 2: Literature Review and Methodology
Chapter 3: Developing and Maintaining Good Supply Chain Relationships & #8230;..
Chapter 4: Information System and Technology Application Requirements
for Supply Chains
Chapter 5: New Initiatives and Applications that are Introduced in Military
Organizations and the Differences between Military Organizations and Civil Sectors Better Performance Achievement
Chapter 6: The Importance of Supply and Integrated Logistical System for Achieving Strategic Objectives in Military Organizations and in Comparison with Civil Sector
Chapter 7: Conclusion
Chapter 1: introduction to Supply Chain Management.
Identification of supply chain management system
In sum, supply chain management can be defined as "the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer" (Chimni 2015, p. 2). In this context, supply chain management concerns the coordination and integration of these processes within and between all supply chain partners (Chimni 2015). Although every organization's supply chain is unique in some fashion, the overarching objective of any effective supply chain management system is to "reduce inventory (with the assumption that products are available when needed)" (Chimni 2015, p. 3). It is important to note, though, that even small- to medium-sized enterprises (SMEs) may have supply chains that are enormously complex. For example, Ogulin (2014) points out that reduced product lifecycles and altering management philosophy concerning supply chain management has grown increasing convoluted in recent years, particularly for multinational organisations. Taken together, it is clear that identifying the supply chain management system is just the first step in optimising it, and it is also essential to understand the importance of a supply chain system for an organisation as discussed further below.
Understating the importance of supply chain system for an organisation
Because a supply chain has numerous points at which business operations can be facilitated or impeded, formulating optimal supply chain management processes represents an important and timely enterprise for companies of all sizes and types. In the private sector, the importance of an effective supply chain system directly corresponds to how much profitability it...
For example, according to Smith (2003), profitability remains the overarching consideration involved in the management of supply chains in the private sector because this is a prerequisite to any future success. It is therefore not surprising that a great deal of attention must be paid to how well a supply chain system is functioning to ensure that waste is eliminated and value is added at every opportunity. In this regard, Smith (2003) emphasises that consumers have become savvier with respect to how they go about selecting a vendor and organizations that effectively manage their supply chains will develop and sustain a competitive advantage. Therefore, it is reasonable to suggest that companies competing in the private sector that achieve optimal supply chain configurations will enjoy a competitive advantage over those companies that do not. For example, as Agas and Hussan (2008) also stress the need to optimise an organisation's supply chain in order to remain competitive in an increasingly globalised marketplace.
Similarly, in the public sector, organisations that achieve optimal supply chain systems will provide the most return on the investment of scarce taxpayer resources, thereby helping them to achieve their concomitant mandate of judicious management of these resources. The implications of effectively managing the supply chain system for public and private sector organisations are therefore enormous, but their requirements differ from organisation to organisation. There are some commonalities involved in supply chain systems that make their importance to organisations clear. For instance, Ogulin (2014) notes that the supply chain management process has assumed increasing importance in recent years because it is the fount from which all other business success flows. These points lead to the next issue which involves the specific requirement of a supply chain system as discussed below.
The requirements of supply chain system
As noted throughout, every supply chain system is unique is some way, but there are some shared common requirements that characterise all supply chain systems. For example, Ogulin (2014) reports that the supply chain management process is focused on developing efficient methods that can be used to better coordinate the distribution of resources along the supply chain upstream and downstream. Therefore, the requirements of a given supply chain system will include its supply chain partners, as well as the organisational resources that are used to support these supply chain process along its entire continuum.
A supply chain system also has five constituent management requirements that are common to private sector organisations:
1. The first constituent element is termed the plan, which is the strategic vision the company uses to guide its day-to-day operations in order to achieve long-term goals (Parts of supply chain management, 2015).
2. The second constituent element concerns sourcing, including whether to single- or multiple-source the raw materials and services that are needed by the organisation.
3. The third constituent element is the actual process by which the organisation manufactures a product or provides services (Parts of supply chain management, 2015).
4. The penultimate element is termed the logistics that are required to deliver products or services, including requisite warehousing and transportation requirements (Parts of supply chain management, 2015).
5. The final constituent element is a mechanism for handling any returned defective products or responding to customer service issues (Parts of supply chain management, 2015).
Taken together, the requirements of a supply chain system are highly complex, making the need to manage them effectively all the more critical for business excellence as discussed further below.
Business excellence achievement utilising effective means of supply chain
The importance of an effective supply chain system to achieving business excellence is well documented, and there has been a great deal of research devoted to identifying best practices. Nevertheless, there are some profound challenges that are involved with developing and sustaining an optimal supply chain and the process is not static. Even when optimal results have been achieved, the competitive environment continues to change, making ongoing oversight of the supply chain system an essential part of successful operations. For example, one consultant reports that all successful organisations recognise the fundamental requirement to respond to changes in customer preferences in a timely and responsive fashion (An Effective Supply Chain is Essential to Dealing with Seasonal Changes, 2014). In the overwhelming majority of cases, private sector organisations must adjust their product lines according to changes in consumer preferences as well as seasonal changes that require new product features (An Effective Supply Chain is Essential to Dealing With Seasonal Changes, 2014, p. 2). This means developing a lean and agile supply chain system that can respond effectively to these changes in the competitive environment in a timely and efficient fashion.
These are important considerations for both public and private sector organisations that are faced with the need to maximise their available resources to achieve their organisational goals. As discussed at length in chapter two that follows, this also means that effective supply chains require good relationships between supply chain partners and a mechanism for ensuring that communications flow seamlessly. While information technology resources have facilitated this process, these technologies also carry their own special constraints that must also be taken into account. In sum, the supply chain represents a critical component of organisational success and supply chain managers are on the front lines of ensuring that their organisation's supply chain is optimized…
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