Introduction
The supply chain is a structure of organizations, resources and activities by people that lead to the production of services and goods. Various policies should be maintained to ensure supply chains become a success.
Efficiency and Effectiveness
Supply chains are important in establishing consumption and distribution patterns of commodities. Supply chains result in the strategic position of consumable commodities where the market is readily available (Booth, 2010). Consumers do not have to experience inconvenience in accessing goods and services. There also exists efficiency in that a particular unit of a supply chain specializes in its area of work. For distributors, they can focus and distribute efficiently without mixing up their works (Rogers, 2009). The desired outcomes of establishing supply chains prove to be successful. This success is contributed majorly by the effectiveness of well-established supply chains.
Areas for Improvement
The firm wishes to improve its systems in accessing supplies rather than dealing with one supplier. Different supplies will be established, and an invitation to tender will be handed out. The firm will search for viable suppliers and evaluate information provided. After identifying various suppliers, they will be evaluated and shortlisted through technical, financial, social, legal and environmental factors. After accessing the qualification information, solicit bids will be engaged. The suppliers will be required to write specs, record responses and answers. After necessary negotiations, orders will be placed, and payments are disbursed as well.
Summary
Incorporating various suppliers will create competition that is healthy for producers. They will produce quality goods that will satisfy consumer wants. The firm may also choose to incorporate suppliers who are socially responsible. This reason could be argued that a firm ought to improve the standards of living of the society. Identifying sustainable suppliers will ensure good relations are maintained. These suppliers could also issue accommodating credit policies that will result to the growth of the business indirectly. Good relations could incorporate reduced costs and discount incentives as well as improved bottom line.
References
Booth, C. (2010). Strategic procurement: Organizing suppliers and supply chains for competitive advantage. London: Kogan Page.
Rogers, S. C. (2009). The supply-based advantage: How to link suppliers to your organization's corporate strategy. New York: AMACOM.
