SG7001 Managing Strategy Operations and Partnerships SG7001
Introduction
The integration of a supply chain is a gradual process, with the most promising investments given the most attention. Depending on the company’s strategy, objectives, and potential returns, the supply chains of different business divisions may be prioritized and treated differently. Many aspects of integration are a resource allocation effort.
Discussion
Many businesses begin at home and make their way into the supply chain. Inventory reductions, for example, can reduce working capital, storage, and transportation costs in the initial phase of a turnaround plan. Typically, inbound logistics studies can discover savings. From here on, the integration effort expands. One of the most important aspects of a company’s overall competitive strategy is supplier selection. To maximize the company’s and supply chain’s competitiveness, this strategic approach to outsourcing integrates internal and external resources. To achieve these objectives, a company must first evaluate its existing and future capability and technology needs, compare them to current capabilities, and then decide if the gaps may be best filled through internal development, acquisitions, or outside suppliers. Choosing to engage outside vendors necessitates scouring the globe for competitive providers who can meet the defined competency requirements. The competencies of potential suppliers should be linked to the demands of the company. At this point, performance measures should be defined as a way to evaluate prospects and track future supplier performance. The company’s long-term, close business connection with its suppliers necessitates the careful selection of suppliers (Thipphavong et al., 2018).
When it comes to integration, many firms focus on the functions that bring the most value first and then move on to others. Industries vary in their emphasis, but the most common integrations are in inventories, securing raw materials, importing logistics, running production, and disseminating goods. Everything from the extraction of raw materials through production and delivery to the end-user and back is covered by an all-inclusive plan. Closed-loop asset stripping can be used to recycle or repair product returns (Ivanov, 2020). For a well-oiled supply chain, “functional shift ability” is a must-have. This change in supply chain activities can have both advantages and disadvantages. Due to the time and effort required to identify critical functional activities and their interdependencies, many companies have moved from integrating and managing supply chains by functions to integrating and controlling them by process (process management). Integrating diverse supply chain operations, such as information technology, marketing, and finance, is the most effective method for improving supply chain performance. Customization of the supply chain may be achieved by the integration of numerous processes across the supply chain.
Conclusion
These companies commonly utilize a business process architecture (BPA) to analyze processes and supply chain interactions at ever-finer levels. Rather than seeing the supply chain in terms of distinct organizations and roles, it is crucial to view it as a set of interrelated process capabilities. Many of these complex procedures may be coordinated to great profit while unnecessary or redundant processes, such as administrative or redundant entries, are eliminated.
References
Ivanov, D., 2020. Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic. Annals of Operations Research, pp.1-21.
Thipphavong, D.P., Apaza, R., Barmore, B., Battiste, V., Burian, B., Dao, Q., Feary, M., Go, S., Goodrich, K.H., Homola, J. and Idris, H.R., 2018. Urban air mobility airspace integration concepts and considerations. In the 2018 Aviation Technology, Integration, and Operations Conference (p. 3676).
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