Introduction
Supply chain management involves optimizing operations to ensure that there is maximization of efficiency and speed. Customers value when there is speed and efficiency in transactions thus providing the importance of the factor in supplies management. Additionally, for a company to ensure that there is maximized production all these factors have to be considered by the management since an enhanced logistics department will ensure that there is profit maximization. An efficient supply chain is supposed to deliver products cheaply and fast without compromising the quality of the product or service delivery. Supply chain integration is thus applied to ensure customer satisfaction which resultantly leads to company success. Recently, the congress has considered legislation authorizing $47 million to help develop supply chain integration standards which is already approved by the US House.
The case study looks at the importance of the legislation that will authorize $47 million to help supply chain integration standards. Additionally, the case study also looks at the importance of the overall supply chain integration to businesses and the economy.
The supply chain integration is seen as important in many ways possible. On the ways in which the supply chain is seen as important is based on the fact that it provides a competitive advantage for companies against other companies. Supply chain management provides business with a way to gain a competitive advantage over others without necessarily lowering the prices of goods. An efficient supply chain creates an easy way to supply goods easily to customers. Customers are more likely to choose on a company with an efficient supply chain in a way that it meets the needs of the customers giving the company a comprehensive advantage within an industry.
An efficient supply chain also creates other benefits to the company by eliminating redundant steps such as unnecessary procedures that waste a lot of time. On the other hand, efficient supply chain creates a higher end bargaining power for a business with partners such as retailers and suppliers who benefit from a fastened speed of doing business.
The move by the congress as a way to create an integrated supply chain is important for all businesses in the United States. The move will see businesses centralize their focus on global trade, standardize procedures and products, and also create a more effective logistics process. Companies will be able to gain global business knowledge through the integrated supply chain thus providing the businesses with the opportunity to save money for other developments which are also important.
Annotated bibliography
Arndt, H. (2004). Supply Chain Management. Gabler Verlag Springer Fachmedien Wiesbaden GmbH, Wiesbaden.
The book brings about the introduction to supply chain management and the importance of the process. According to the book, many companies owe their success to an efficient and effective supply chain management network within the organizations that helps them develop a comprehensive plan due to the increasing need for customer loyalty. The book also looks at the importance of integration of the supply chain within the automotive industry and how the industries in the United States can same money from government integration with the supply chain. The book therefore explains to the readers the basics of supply chain management and the importance of an integrated supply chain backed by the federal government in creating a successful business environment for development.
Lambert, D. M., Cooper, M. C., & Pagh, J. D. (2008). Supply chain management: implementation issues and research opportunities. The international journal of logistics management, 9(2), 1-20.
The article looks at supply management in the international front and the need for companies to see the opportunities that lie within the logistics of a company. A well detailed logistics plan creates an important part of a business model. The article uses Wal-Mart as an example of a success story that is attributed by the smooth supply chain that the company has embraced. Additionally, the article talks about the competitive advantage gained by Wal-Mart in the local and global market mainly due to the efficiency of the supply chain management. The article talks of the supply chain integration as a way to gain the knowledge of the global markets and compete internationally with key sectors and businesses. The article has thus well informed the readers of the importance of supply chain management and the need for every company to take up on the opportunity that lies to with the customer satisfaction.
Thibodeau, P., (2002). Supply chain standards up for federal funding. Computerworld, 36(42).
The article by Computerworld talks about the new bill that will see authorization of $47 million that will help develop supply chain integration standards. According to the article, the bill is meant to ensure that the American industries save millions of dollars from the bill thus creating an advantage for them over the other countries. The article uses an example of the auto industry looking at it in a way that it can save up to $1 billion just in case the bill is passed in the United States. The article further looks at the importance of standardization of the supply chain within the American industries which will help in creating products that are of high standard to the people. An improvement on the standards laid down for products manufactured will be an important aspect for the American industries as they will be able to sell out quality to the global market which is always appealing to the people.
