Features of Supply Chain Management - Essay Example

Procurement establishes a set of rules, strategies and plans to be followed when acquiring products and services that are added to the supply chain. Order management keeps track of the whole process; it determines where some changes can be made. Logistics cover the complex systems that incorporate large organizations expanding rapidly and need to grow simultaneously (Blanchard, 2010). The managing of returns accelerates the process of realizing the company’s progress, loss or profit. Finally, the process of planning and forecasting is trivial to the future of the enterprise. All of the discussed features are adapted using an efficient or responsive supply chain.

An effective supply chain is characterized by; long production times, large batch sizes and high set-up costs. An example is the process of implementing upgrades in the company, the process has to be thoroughly researched, and the best options selected (Blanchard, 2010). Responsive chain supply is characterized by; short production lead times, small batch sizes and low setup costs. An example is the introduction of a new product in the company due to its demand. A food processing company, for example, will shift to developing a newly discovered flavour for its customers when it is in high demand.

Supply chain strategies depend on the planning adopted by a company, and some companies have limited choices when implementing a responsive supply chain compared to an efficient one.