Part 1
Supply Chain Management (SCM) Theory
Supply chain management is the act of managing the movement of goods and services in addition to all processes involved in converting raw materials into finished products. It further entails the improvement in a business’s supply-side operations to make them more reliable to clients with the aim of improving customer value to dominate the marketplace through competitive advantage. The network theory is an important component of the supply chain management that we will discuss in details with regards to its contributions to operations management. The network theory (NT) facilitates an in-depth understanding of the market dynamics existing within the inter-organizational relations. Through NT, organizations tend to build trust on each other due to optimistically enduring cooperation and mutual adaptation of systems throughout their relationships in their exchange processes (Halldorsson, Kotzab, Mikkola & Skjøtt-Larsen, 2007). Hence, the organizations develop better and salient communication relationships with increased customizations with the aim of meeting the expectations of individual customers. Therefore, it is the social exchange processes that lead to a buildup of trust among the business partners to enhance a continued movement and change of goods and services (Halldorsson, et al., 2007).
Therefore, to reinforce the linkage between business partners within a network in the context of SCM, the exchange processes, and adaptation processes are two paramount kinds of interactions. For instance, the exchange processes will improve the levels of communication with regard to information technology, easier movement of goods and services and the enhancement of other social processes (Wellenbrock, 2013). Conversely, the adaptation processes improve the levels of personal interactions, technical support, legal requirements and logistics and administrative elements of the supply chain management (Halldorsson, et al., 2007). Therefore, the NT is a vital tool in SCM since it can be used to map business activities, actors in the marketplace and resources in the supply chain. Hence, the NT has widely been applied in the development of the aforesaid long-standing trust to reinforce relationships among members of the supply chain (Wellenbrock, 2013). For example, the best supplier-buyer relationships, better third-party logistics and improved management roles in supply networks will greatly improve within the SCM sector (Halldorsson, et al., 2007).
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Therefore, Hearnshaw & Wilson (2013) depict how the supply chain can be used to model complex adaptive systems based on the network theory. This implies that the NT can represent various autonomous business firms that can conduct sovereign decisions and sets of connections to diversify the connections between various firms to enhance the increased creation of goods and services. This can be achieved through the exchange of relationships between mutually dependent firms. Such actions can significantly improve the movement of physical products usually known as material flow, increase information flows and financial flow (Hearnshaw & Wilson, 2013). The enhanced exchange of products and services can boost the monetary flow, which eventually increases the monetary resources of the business. Further, rapid information flow promotes efficient material and capital flow through enhanced delivery of final products to consumers in the supply chain.
Having considered this important part of the SCM, (the NT), let us now delve into the analysis of how SCM supports operations management efforts. The operations management aims at meeting customer demands. This effort has been great by the SCM with regards to a general boost in customer service throughout the supply chain. For example, the SCM aims at achieving the best product assortment and quantities demanded by customers (Council of Supply Chain Management Professionals, 2018). Additionally, since the SCM avails products at specific locations available for the customers, it enhances customer satisfaction and also makes the operations management strategic, tactical and operational with regards to the location of the manufacturing plants. Hence, the firm’s operations will ensure increased responsiveness, which is a key component of the SCM and the right delivery time to the customers (Council of Supply Chain Management Professionals, 2018). Furthermore, SCM promotes massive production with higher quality standards maintained. The possibility of increased production is as a result of reduced operating costs including purchasing costs, total supply chain costs and production costs.
Global Supply Chain Management (SCM) Practice
Supply chain execution system is an important part of the global SCM practices. Some of the execution functions involve the management of the movement of goods from the point of manufacturing to the retailers to reach by the final consumers. This function solely aims at improving the accurate delivery of the products (Rogers, 2011). The execution system further provides accurate information regarding the status of orders made by customers as well as those being processed to enable the vendor promise customers the correct date of delivery of the products. Further, the execution system tracks the shipment and accounting regarding goods returned and those under repayment. Therefore, it is noteworthy that the execution system enhances the transportation life cycle of the goods and services from the factories, to the market for easier reach by customers. However, this is usually done in compliance with environmental regulatory measures as well as trade legislation (Rogers, 2011). Therefore, this form of integrated logistics enhances monitoring and visibility of goods based on coordinated transportation management practices within the global SCM. As a result, the supply chain experiences the best financial control systems due to accurate and on time budgeting.
The global supply chain management greatly supports operations management efforts since it is associated with the evaluation and determination of the most appropriate global logistics operating model. This is possible due to the ability of the global SCM to recognize the logistics functions that are intended to outsource and those that keep in-house (JDA Software, 2014). Therefore, the logistics companies will be able to develop the correct logistics network designs and improve the global shipment planning, transportation capacity planning, and sourcing (JDA Software, 2014). Again, the global logistics companies will be able to adopt multi-divisional operations based on shared services within the organization to take part in procurement, planning, execution and monitoring the global movement of freights.
Through the global SCM, the operations management efforts have achieved the establishment of strategic relations with their logistics service providers that have improved the alignment based on performance metrics (JDA Software, 2014). The strategic levels provide better services to offer solutions to global transportation capacity challenges by reinforcing relationships with the aforesaid service providers.
Additionally, the global SCM supports the operations management efforts by optimizing the global shipment of products based on intelligent routing and consolidation. This intercontinental transportation planning process is common among logistics firms that transact huge shipment capacities. Therefore, the intelligent routing system is a dynamic process that enhances the maximum utilization of containers to be able to avoid the contemporary transportation capacity problems (JDA Software, 2014). Global SCM relies on decision making regarding the port, inland modes, and carriers before considering the available consolidation opportunities across various boundaries. As a result, the global SCM has come up with the merge-in-transit to enhance the trans-loading and diverting-in transit to cut on transportation costs within the distribution hubs (JDA Software, 2014).
Part 2
The importance of professional interaction, communication, and presentation skills within the operations management and SCM environments
Appropriate communication based on the context of global logistics can promote supply chain success. Therefore, improving communication as a soft skill should be a top-priority to enhance the build-up and management of positive relationships with clients. Similarly, the professional interaction will enhance the application of the correct interpersonal skills with regards to the most appropriate type of communication in a particular context within the global supply chain management as well as operations management. Therefore, these qualities lead to diplomacy, team-building, and eventually the application of good leadership skills throughout the process of the supply chain.
For example, appropriate communication with professional interaction leads to increased productivity in the supply chain. This is because an effective communication will lead to avoidance of repeated communication and time wastage because issues relating to supply chain and operations challenges will be clarified accordingly. Hence, productivity will depend on both subordinates’ and superiors’ clear understanding of concepts to enhance setting priorities and assigning tasks on time. As a result, there will be increased morale amongst employees within the logistics company, and their performances will be equally great.
References
Council of Supply Chain Management Professionals. (2018). The Importance of Supply Chain Management. Retrieved 17/7/2018 from https://cscmp.org/CSCMP/Develop/Starting_Your_SCM_Career/Importance_of_SCM/CSCMP/Develop/Starting_Your_Career/Importance_of_Supply_Chain_Management.aspx?hkey=cf46c59c-d454-4bd5-8b06-4bf7a285fc65
Halldorsson, A., Kotzab, H., Mikkola, J. & Skjøtt-Larsen, T. (2007). Complementary Theories to Supply Chain Management. Supply Chain Management: An International Journal. 12/4. 284-296. [Updated: 2018]. Emerald Group Publishing Limited. Retrieved 17/7/2018 from https://www.researchgate.net/publication/235310233_Complementary_theories_to_supply_chain_management
Hearnshaw, E. & Wilson, M. (2013). A Complex Network Approach to Supply Chain Network Theory. International Journal of Operations and Production Management. Volume 33, Number 4. Emerald Group Publishing Limited, Christchurch. Retrieved 17/7/2018 from https://www.researchgate.net/publication/263268796_A_complex_network_approach_to_supply_chain_network_theory
JDA Software. (2014). Best Practices in Global Logistics. Supply Chain News. Retrieved 18/7/2018 from https://www.supplychain247.com/article/best_practices_in_global_logistics
Rogers, L. K. (2011). Supply Chain Software Basics: Supply Chain Execution. Today’s supply chain execution software applications are evolving, adding functionality and enabling operations to function more effectively . Retrieved 18/7/2018 from https://www.mmh.com/article/supply_chain_software_basics_supply_chain_execution
Willenbrock, M. (2013). Theoretical Basis of Supply Management: The Network Theory in Supply Management. University of Twente Press. Enschede. Retrieved 17/7/2018 from https://essay.utwente.nl/63478/1/Bachelor_thesis_Maike_Wellenbrock_s1136488.pdf
