Supply Chain Management Essay Example | Topics and Well Written Essays - 2750 words

deliver Chain Management - Essay ExampleThus, supply network necessitates several levels of desegregation with the first macrocosm the integration of separate components in organizational structures to create individual networks and secondly, integrating the networks. The first level integration ends in manufacturing and distribution networks, because individual networks link to a central warehouse that receives stocks from plants when products are manufactured and distributes them to customers done field warehouses. Thus, two networks with the possible routes for manufacturing and distribution form the supply chain network that involve planning, achievement and control of components. Managing flow time is polar in providing effective customer service in the supply chain therefore, integration is the basis of supply chain management strategy Development of efficient MPC system of rules is crucial to the success of all companies that produce goods since it coordinates supply chain efforts across company boundaries (Jacobs 1). Inventory is a valuable asset in companies however, benchmark results indicate that most organizations fail to manage take stock efficiently. legion(predicate) manufacturers and distributors depend on overly localized line of descent policies thus, companies tie working capital which can result in hurting shareholders. Properly managed record acts as a lifeline for supply chain since it propels revenue and competence in companies. In IBM, supply chain strain practices involve managing flow and positioning of inventory across different stages within the supply chain even in suppliers and downstream partners. The company adopts the prospect of combining proven supply chain inventory practices, which reduce inventory levels across the organization magic spell improving service levels as well as productivity. The company is does not push back inventory to its suppliers however, IBM helps its suppliers to reduce their inventory . Rather than monitor and manage inventory at local level, IBM is change magnitudely adopting supply chain-wide inventory practices. Companies attempt to decrease amount of inventory in their supply chain management, which in turn reduces inventory carrying costs. The company aims at being responsive and reliable to customers, since it is crucial for the company to increase service levels without increasing inventory investment. Since inventory necessary to chance upon service levels relates to lead time, reduction lead time as well as supply chain unpredictability is crucial to the company. Moreover, IBM aims at improving financial performance, because it is crucial for the company inventory management success to maximize profit contribution and net margin thus, reducing distribution and manufacturing costs is essential. In some cases the company institutes lean processes for low inventory however, it is not excessively low to drain financial performance of the company, which increases manufacturing re-scheduling and lost sales from uncompetitive flow times. Best companies attain high improvement rate from better inventory management practices, which are augmented when they apply engineering science to practices like supplier collaboration technology. IBM