Evaluate the economic impacts of supply chain management (SCM) and how the devel

Question

Evaluate the economic impacts of supply chain management (SCM) and how the development of supply sources, vendors, and logistics builds overall company value into the enterprise. Compare the advantages and disadvantages of SCM and what aspects are most important with the following types of businesses (please prepare a table): global company B2B; Domestic B2C service provider; Web supplier of automotive parts; Consulting services offered world wide; Construction company; Mineral Commodity Exporter; Import jewelry reseller. Judge what role is played by marketing, finance, engineering, customer service, operations, and legal in the creation and foundation of SCM. Critique various SCM schemas based on vendor quality, price, delivery, inventory, and support and weight selection criteria for best overall vendor selections. Choose vendors based on network, flexibility, design capability, customizable depth, unique support services, overall quality standards, location, national resource attributes, economics and financial offerings, and rank each aspect of these vendors to each of the following scenarios: raw material supplier, electronic sub contractor, machinery manufacturer for resale, appliance provider for resale, service resource for systems support, educational institution, specialty hardware IT provider; please provide rationale for each vendor type and defend selection criteria.

Explanation / Answer

Supply chain management (SCM) refers to effective administration of flow of goods and services wherein involves movement and storage of raw materials, work-in-process inventory and finished goods from point of origin to consumption. Furthermore comprises of interconnected networks and channels which eventually facilitates in effectively supplying goods and services to end consumers.

Supply-chain management has effectively been described as designing, planning, executing, controlling and monitoring supply chain activities with the objective of creating value, developing competitive infrastructure, leveraging global logistics, synchronizing supply with demand and measuring performance worldwide.

Customer relationship management (CRM) tools in SCM eventually do facilitate gathering customer information for market research purpose with the objective of determining goods and services to be offered in future. Demand management considers consumer interactions and orders thus facilitating to effectively determine the workload in the supply chain process.

Product development in SCM process eventually do necessitate working with CRM and customer service data aimed towards determining existing market conditions and producing cost-effective goods and services eventually satisfying consumer requirements. Furthermore necessitates effectively integrating suppliers aimed towards efficiently managing cost, quality and delivery time.

Business-to-business electronic commerce indeed does facilitate to account for vast majority of total e-commerce sales thus eventually plays a leading role in global supply chain networks. Steady growth of B2B eventually had facilitated with cot reduction and enhanced profitability for organizations across global.

E-commerce retail involving B2C service has become the fastest growing trade sector and has outpaced every other trade and manufacturing sector since 1999 when US Census Bureau initiated accumulating and publishing data on e-commerce. Presently revenue stands at approximately US $165 billion against US $3.9 trillion representing total US retail market.

In current e-commerce market consumers can simply use their computers and smart phones or other portable electronic devices for shopping online. Buyers and sellers that engage in e-commerce retail trade are no longer restricted by store hours, geographic marketing areas or catalog mailing lists. Furthermore characteristics of retail e-commerce merchandise have changed significantly wherein consumers can buy almost anything online.

The growth of e-commerce retail sales eventually had facilitated reducing consumers' search cost and reduced price distribution for varied consumer goods. The extremely rapid growth of e-commerce retail sales has provided a major boost to residential parcel delivery services through third-party vendor such as FedEx, UPS, or US Postal Service.

Latest development in technology had eventually facilitated e-commerce business globally towards effectively inter-connecting consumers and sellers which ultimately have helped speeding up the process of conducting sales transactions. Supply chain management indeed has the potential to increase productivity within an organization.

Thus facilitates ensuring that production or manufacturing never slows down or comes to a halt because the company is out of supplies to make its products. In addition an organization can increase its productivity by employing a supply chain management buyer because management staff and executives who had handled purchasing duties can focus on making the company more profitable.

Employing an unskilled or inexperienced supply chain management buyer can be a disadvantage to a company which eventually can affect productivity and profits of the company if it’s incapable of ordering supplies in a timely manner within a budgeted amount. This is why it’s important for companies to take time for selecting the correct SCM process.

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