This article gives an elaborate introduction of the processes and activities involved in the supply chain management. The processes like procurement of the materials, processing of the materials as well as distribution of these materials to the relevant destinations and customers. The processes of transforming raw materials into finished goods are also well catered for in this article. The article shows that the supply chain is commonly found both in the manufacturing and service industry where the degree of complexity of the supply chain varies from one industry to another as well as between firms. The article shows that the supply chain for one product may be different from the supply chain of another product depending on the nature of the product and processes used to complete the lifecycle of each product. The supply chain is a crucial tool in ensuring proper networking for the smooth flow of the product. The article have therefore given a god introduction pertaining to the types of chain in relation to nature of the product being handled. I agree with the author of the article concerning the length of the chain of each product based on the nature of each product under consideration. The important steps and order of each supply chain was given emphasis in order to understand the whole chain with ease.
The supply chain requires a smooth plan and flow of activities in order to facilities reduction of costs while at the same time improve service delivery to the customers. This can only be achieved through proper utilization of time between the processes in the supply chain. The effective and efficient supply is essential in reducing wastage as well as saving time between processes in the supply chain. This will therefore call for concentration of energy and time in each stage of the processes to make the whole supply chain smooth and faster in delivery of quality goods and services.
In the context of this article, location decisions in the supply chain have been taken into consideration. This refers to the nature of the geographical location of the units of the supply chain. The nature as well as long term effect of the geographical location is emphasized in this article so as to determine the accessibility of the customers. The location of both the customers and factory should be carefully planned and analyzed in order to ensure that the supply chain is reduced which in turn helps in reducing the transportation costs. This will further facilitate faster service delivery to the customers. Location therefore have an overall effect on the productivity of the company in relation to profits, costs and revenue. The logistical issues concerning location decisions should be taken into keen consideration in order to facilitate efficient and effective service in the supply chain.
In the context of production decisions, the strategic decisions like what to produce, how to produce and allocation of the produce should also be given emphasis in order to ensure that there is efficient allocation of the inputs as well as production of profitable products. The production decisions discussed in the article are of essence since they have an impact on the levels of revenues as well as costs of production of the specific products. This will help in determination of the best products to produce and what levels or volumes of each product should be produced.
The article have also outlined the ways to manage inventory including handling measures. The article have taken considered inventory in relation to the optimal levels and flow of goods. The stochastic control techniques should be used in determining the levels for stock replenishment so as to ensure that there is no delay or slack in the transfer of stocks in the supply chain. Management of inventory should also take into consideration the nature of goods, for instance perishability or fragility of goods being handled in order to avoid damage of goods in delivery. The critical stock levels should be determined in order to evaluate the levels where the stock need to be replenished.
In relation to transportation decisions, strategic issues and decisions have to be considered in order to ensure that the goods are transported faster to the customers .The improvement in transportation will facilitate efficient transportation of goods and boosting the whole supply chain. Transportation will therefore streamline the whole supply chain. The fastest mean of transport should be adopted to eliminate inefficiencies in the supply chain.
The supply chain should adopt technological innovations in various stages of the production chain in order to facilitate the efficiency of operations in the supply chain. Technological advancements will enable tracking of goods in the supply chain in order to facilitate a smooth flow of all activities. This will also enable quick procurement operations thereby eliminating the need of many intermediaries in the supply chain. The use of network design methods should also be implemented in order to ensure there is effective coordination in the supply chain.
