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The concepts of supply chains and distribution channels - Essay Example

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The concepts of supply chains and distribution channels

However, initially, the concepts and practices were not clearly spelt out as it is now. Most of the activities were carried out in an ad hoc manner (Lavassani, Movahedi, & Kumar, 2009, pp. 85–98). Integration of distribution and warehousing (logistics) The concept of supply chain in the company has evolved over time. Most of the segments of supply chain were loosely interconnected. However, as the company developed it had to integrate the logistics, distribution and warehousing together to take advantage of efficiency that supply chains provided. When the company realized that, it had to upgrade its operations due to efficiency brought about by the integration. The company decided to merge the two concepts to form logistics. This made the border between warehousing and distribution became transparent. However, the two ends were still loose, and the management tries to consider making the links stronger and increased the level of resource sharing. This was also coupled with reduced costs and time to market. This was the beginning of evolution in the company (Mentzer, et al, 2001, pp. 1–25) Integration if logistics with production and purchasing The company later decided to optimize the advantages of integration. The company integrated purchasing, distribution, warehousing, and production. The concept worked out right, and the saving was exceedingly. The four functions were integrated, and the core activities under each concept were conducted under the same roof. This was the birth of supply chain in this company. The company managed to align the separate function in the sequence bellow:   Leveraging lean and agile The concept made the company too agile. This is one thing the company has been searching for, the supply chain concept provided the agility required by the company and the company optimized its supply chain concept and leveraged its production to achieve the required competitive age. However, this conceit is long overdue in the company. This has also contributed to the company profitability as the company became more agile. The demanding market and growing competition made the company more profitable due to its agility. The comment managed to increase its product lines and categories (Larson, &, Halldorsson, 2004, pp. 17-31). According the to Kouvelis, Chambers, &, Wang, (2006, pp. 449–469), the volatile and less predictable market just made competition better, and visibility of the company amidst the masses was achieved through agility and leanness Lean concept The modern SCM in companies must be lean; the concepts of leanness help the company to hold the required stock only and assets that can slow down the response time and increase cost are shed. These concepts offer sufficient service levels that can meet growing demand in companies. As a product portfolio, companies must know how to valance between lean and agile. By fine tuning, this company achieves an optimal product portfolio. The different production, which is in the company portfolio, must be treated accordingly (Movahedi, Lavassani, &, Kumar, 2009, pp. 75–88). characteristics of a contemporary Supply Chain concept Lean: The company aims at forecasting at the generic level Economic order Quantities Maximized efficiencies Agile: Demand driven operations effectively Localized Configuration Maximized effectiveness  Then backbone of stable agile and lean supply chain is operations efficiency that brings about6 sustainable competitive advantage. This is based on the supply chain concept that offers a sufficient service level in the face of growing demand  (2) Identify and describe the supply chain and distribution channels ...Show more
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While supply chain is a new concept, it is relatively older than people can imagine. However, initially, the concepts and practices were not clearly spelt out as it is now…
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