Introduction to supply chain management.
Compare the advantages and disadvantages of the exit and voice relationship among suppliers
Improved communication efficiency amongst suppliers as information is sought enabling suppliers to participate altogether. Communication helps the industry grow creating a stable ground in which suppliers meet. Competitive advantages are also an advantage that occurs due to such a relationship. Costs can also be reduced and flexibility improved. Moral hazard is plausible as the suppliers may drive prices up thus affecting clientele and their market. Moral values may also be infringed as switching of suppliers may be hard for a business industry due to the flow of information.
Collaboration in the supply chain industry means that this is the coming together of firms to share complementary objectives and intellectual resources coupled with a continued emphasis on the trust and respect inclusive of skills and technical as well as non-technical knowledge. For this to succeed there needs to be intellectual agility. In the current contemporary world Supply Chain Collaboration has become a major area of discussion due to the impact it has on business. Collaboration is seen as an effective driver of an efficient supply management plan. Benefits associated wiith collaboration include customer satisfaction through the provision of their needs and wants. Another benefit that is as a result of collaboration,is the reduction in costs and services especially in the duty of operational management. Efforts should be found to ensure that customers are satisfied but at the lowest price possible.
What does the future of supply chain hold? What might we expect to see in the purchasing patterns, transportation and new market place?
The future holds new trends in the field of supply chain management as technology is expected to help digitize the operations of supply chain management business this will be achieved through the use of new digitized financial processes that will ensure collaboration is upheld. Trends expected in the logistics industry include change in growth patterns as new markets open up. Flexibility is also expected to be increased to meet customer requirements at different locations. Globalization is a major goal for most companies thus more are expected to join the growing market. Consumers are also expected to increase multi sourcing channels. Fast and fashionable marketable appeals are expected to help spur growth in the field of supply chain management. Many changes are expected in this field as technological advancements continue to increase.
How will the fluctuating oil prices affect the future of the logistics industry?
The logistics industry is set to be affected by the recent slump in oil prices as most of the delivery services i.e. just-in-time delivery and use of dedicated fleets are supported by changes in oil prices. There are several changes expected and they include putting to use the transportation capacity available to move from just in time delivery methods. Direct savings are going to be made on the transportation services as the low prices help increase mileage and subsequent costs. Expected increase in customer trade will help in ensuring that there is generated cash inflows and as a result there will be growth in the industry with most firms expected to enter the global market. However as the volatility of oil prices increases firms are expected to base decision on a short-term- midterm plan as prices are likely to remain the same but for only a period of time. The logistics industry is affects by volatility of oil prices and a change in the prices in the world market directly impacts this industry.
Advantages of awarding suppliers long term contracts rather than annual contracts?
Advantages associated with a long term contract include the benefits of reduced costs in the long run though costs may be high in the initial set u. However the long term nature of the contract enables the reduction of fees in the preceding period. Long term contracts are also characterized by an upsurge in communication and efficiency. Increased efficiency is a direct cause of the continued relationship due to the long period that the 2 parties have worked together. Mitigation of price fluctuations is also enabled as prices may change over a period of time. Flexible models for pricing that cater for such fluctuations are provided by the long term contract. Consolidation of supply chain is developed as the long term contracted is able to understand the business models of the company and the product and services provided.
Will companies like apple face a problem at all in the next 25 years as they have a nearly Perfect supply chain at the moment?
Apple has invested in its supply chain management department providing excellent services especially in the delivery of products. Upon reading the article several methods will be used to improve efficiencies of current models. Techno-savvy firm Apple will have little or no problems at all in the subsequent future as their supply chain model will be more effective despite the high standards that are currently prevalent in the sector. Errors then may not stem from poor strategies but on common errors as the supply chain system is expected to be more advanced at that period of time.
