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Supply Chain Analysis - Essay Example

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Supply Chain Analysis

Some of the major benefit of a rapid response supply chain system that are discussed in the paper include timely delivery of the raw material and products, maximum security profit maximization and sales improvement. The logistics performance and inventory assessment is a vital responsibility of evaluators and logistics managers. Key measures used to assess the inventories and logistics performance that are discussed in the paper include Order fill rate, Accuracy of data to improve inventory management, Difference between the Quantity of Products Received and Quantity of Products Ordered, Logistics System Assessment Tool, Perfect order measurement, comprehensive and casual orientation of the logistic performance. The phenomena of local optimization that is brought up by the desire of the supply chain partners to maximize their profits adversely affect the optimality of the entire supply chain. This paper discusses how coordination, relationships among the partners, making sacrifices and compromises as major ways of mitigating the problem of local optimization.
Supply chain management (SCM) entails the coordination of all the activities that are involved during the production of goods and services in a company. Some of the major aspects that are covered by SCM include transportation and storage of raw materials, controlling and monitoring work-in-progress as well as transportation of the final products from the factories to consumers. A rapid response supply chain system involves the various activities emulated by organizations in order to ensure that they are in line with the changing business atmosphere. Even though companies allocate significant financial resources to improve their supply chains, it is imperative to ensure that there is a positive linkage between partners in a supply chain. A rapid response supply chain system stipulates that there should exist ...Show more

Summary

Local and international companies are experiencing stiff competition and other marketing challenges that greatly determine their level of profitability. Supply chain management (SCM) involves effective coordination of the various activities undertaken by supply chain partners…
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Supply Chain Analysis essay example
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