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Supply chain management. In order to determine the efficiency of supply chain management and make improvements, some indicators are used to evaluate the processes such as demand planning, distribution planning, production planning, inventory management a

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Introduction

SUPPLY CHAIN MANAGEMENT 1. Introduction As the significance of efficient supply chain operations increase, the companies have to determine their processes integrated with their supply chains. It is critical to run an efficient supply chain, since the supply chain management does not only refer to the management of the relationships among the stakeholders, but also aligns to the success of the company in terms of competitiveness and profitability. However, the present global and competitive environment brings about some requirements for the companies. In order to be involved in the markets and sustain their successes, the companies have to follow some strategies based on the collaboration of the customers, suppliers, retailers and subsidiaries. Therefore, some new arrangements and innovative managements should be made in the supply chain management processes. The supply chain is the managerial and operational component of the distribution channel comprising the procurement of materials, intermediate and finished goods manufacturing as well as supplying the customers with the products. It needs to be processed not only in the manufacturing industries, but also within services; nevertheless, the routes and the techniques used during the processes vary among the companies depending on the industry and the structure of the environment. 2. Requirement for Supply Chain Management The supply chain management consists of managing both the internal and external relationships, which are needed in order to collect the data for the company management, achieve the distribution during the supply chain and receive the money required for profit. ...read more.

Middle

Via a successful supply chain management, the lead times are shortened. Therefore, integrated supply channels are established such as country, customer and product based in order to bring quick and reactive solutions to the customers' expectations (Tomas et al, 2007). With the shorter lead times, the logistics costs are lowered, as well. Moreover, being planned and collaborated during the logistics processes result in the reduction of production schedule changes; which means less inventory levels (Amarot and Barbosa, 2007). In the end, the customers are provided with the deliveries completely and on time. As a result, satisfied customers bring about more demands and profitability increases supported by the reduction of costs (Antony et al, 2003). That is to say, an efficient and successful supply chain management process adds to the profitability and competitiveness of the company step by step. 4. Supply Chain Management Performance Measures In order to determine the efficiency of supply chain management and make improvements, some indicators are used to evaluate the processes such as demand planning, distribution planning, production planning, inventory management and supply chain costs. The increasing competition conditions of the international markets bring the necessity to be more flexible in all of the company's processes. This flexibility requires a process based approach eliminating generally conflicting functional targets. The companies managing all of the entities of the supply chain in an equilibrated and efficient manner can maintain a competitive position in the market. The supply chain entities coordination is supposed to minimize the imprecision and reduce the uncertainty related inventory (Tomas et al, 2007). ...read more.

Conclusion

The supply chain strategic network should be primarily designed according to the market and customer trends while considering global supply chain costs and service level. Location of supply chain entities, repartition of duties and the material and information flows between these entities should be within the scope of the customer oriented supply chain structure. Considering the existing supply chain network and strategic targets in the companies, outsourcing can be made in order to perform the new arrangements and ensure the flexibility of the downstream flows. Several analyses are to be conducted to decide between make or buy. Some parameters as rate of return, regional risks, continuity of the capacity need are considered for the new investment decisions. Both rental and rental with service providing options are evaluated. The need to be more flexible, to respond to the regional storage capacity requirements, to the instantaneous needs, to minimize risks and bottlenecks leads the companies to take advantage of new opportunities and make innovations in their processes. In conclusion, the globalization of the industries requires the companies to determine strategic movements in order to gain strategic advantage and sustain profitability. Since the products and services, which are manufactured in any region, are able to be taken to another; the companies are to utilize the opportunities of spreading worldwide. That is to say, the suppliers, manufacturing components, distributors, customers and retailers of a company have to be driven in such an efficient way that the company could gain the competitive advantage of becoming the best qualified and the most profitable. In order to do so and sustain the success, companies have to establish effective and efficient supply chain management operations. ...read more.

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