Submitted by: Submitted by karan921
Views: 10
Words: 1030
Pages: 5
Category: Business and Industry
Date Submitted: 03/29/2016 06:06 PM
What are the various systems in supply chain management to reduce costs, speed
delivery and boost productivity? Give 3-5 detailed examples.
In today’s business environment, every company is presented with a handful of measures to make their operation run smoothly and effectively. Out of all these actions, supply chain management is one resource that could determine whether operational excellence is achievable or not. Supply chain management (SCM) is defined as, “the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage” by Dr. Handfield. (Handfield) that generate consistent results 99% of the period. There are several ways SCM can be optimized, such as managing your own costs, improving the product costs, and negotiating your distribution costs. With these three factors under control, a company will be able to reach the SCM goal of efficiently reduce costs and optimize profitability.
When starting a business, it is harsh to maintain a low production cost. As the company develops and purchases material in bulk, it is essential to strive for the lowest price possible, even a few cents cheaper will result in further surplus revenue. Supply chain management survives with subordinate production costs. This could be succeeded through altered means such as lowering costs for materials, shipping and handling, and creating some sort of SCM techniques. Although this may seem like an extensive drastic procedure at first, it will generate a vast return in the extended run. (Mechanic) In addition, these practices must be implanted towards the property location, expenses of outsourcing, and other utilities necessary to a particular business. These measurements will depict where exactly there is leverage to make adjustments and cut back on costs. In the same way, some strategy must be created to reducing the cost to make the actual product.
Furthermore, supply chain management could be focused on...