Statement of Purpose
Researchers in supply chain management have been looking into various ways the can employ as effective measures to achieve an improved economy. The research was carried out at a time when recession was taking place and many of the organization were experiencing financial difficulty (Balán, 2012). The experts found that there was extensive difficulty in carrying out flexible investment practices and scaled back on supply chain operations. The researchers noted that waiting to find out whether they can undertake opportunities in their industries would be an approach that would greatly derail their ability to achieve even more (Latukha, 2011). The ease of achieving a scalable and flexible supply chain model as well as its mitigation of multiple risks in during recovery process. The potential benefits of this approach are probably easier to achieve rather during a recovery process. The approach of ensuring minimal risk is by far the most effective in ensuring that the organization does not slip up during recovery from economic recession.
Application of Supply Chain Management Theory
The supply chain management practice can be effectively employed in a number of ways that will lead to the benefit and success of the organization. For instance, demand planning and replenishment is an appropriate approach. This practice involves identifying the appropriate demand for a commodity in the market through interactions with the retailers or wholesalers. The approach ensures that the following production process is not excessive. The collaborative production enables manufacturing companies to interact with their suppliers whereby they seek to minimize the waste generated during the production by ordering just the right amount of raw materials (Balán, 2012). Finally, the collaborative logistics planning incorporates the use of measures from the supplies of raw materials to the sale to the end users, producers collect data that will help in the next production cycle. The approach will help develop the effective practices that will reduce wast and maximize quality of products delivered.
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Background
During the recent financial recession, it became clear that the business organization are prone to experiencing negative outcomes. Despite efforts by the owners and managers, the institution is likely to experience a significant downturn. If the organization survives such an outcome, it is necessary for its members to push for its resurgence. Effective measures are necessary to realize a means of commanding attention from the affected members (Latukha, 2011). Using a wait and see approach to the recovery is inappropriate for the company. However, many organizations usually wish for the market to experience change so as to establish change in their firms and implement changes that will help put an end to a downward decline. During the time of recession, organizations experience high levels of uncertainty and could end up feeling high levels of anticipation (Pilbeam, Alvarez & Wilson, 2012). A proactive approach in caring and nurturing for the frail market will help institutions anticipate significant growth that will be fruitful in the near future.
Managerial Implications
Human resources is a common cost in the organization, but can be used in the restructuring process of an organization. It can help the firm reduce the number of staff working full-time to effectively achieve growth during the bad times (Vasquez, 2014). The changing the nature of job for the individuals in the company can be uncertain and volatile from contract, temporary, part-time, and full-time labor ( Olson, 2010). The business can take a downside risk for growth opportunities by ensuring economic upticks which include downsizing (Latukha, 2011). The organization can use the time during temporary downsizing to ensure a critical review of temporary employees into making them permanent.
Procurement is an effective approach to help the company grow in capacity, the firm has to ensure control over the manufacturing process of its various products. The institutions can help limit the the demands and nimble nature of the approach. The organization that have scale down operations can now consolidate procurement to ensure the resources available can be used in performing other high value activities of the firm ( Olson, 2010). For instance, organizations can procure raw materials of specific parts of a commodity as a measure of improving its managerial standards. Increased procurement of activities considered non-important can help reduce cost of operations or manufacturing. The practice will help in the effective use of limited resources.
Other functions that can be used in the manufacturing process are an effective approach to ensuring that the organization can take a management approach towards flexibility and scalability benefits. The organization can undertake measures to ensure that it can effectively carry out measures of manufacturing or producing the required goods ( Olson, 2010). There are numerous corporations that deal with distribution of raw materials, however, to achieve the goal of supply chain management, the firm has to implement more appropriate measures that are proactive towards reducing costs (Vasquez, 2014). The outsourcing practice can help achieve significant managerial benefits of improving the production process. Managing the relationships of individuals involved in this process is integral to achieving these success.
Summary
The approach towards appropriate supply chain management I during a recession is the ability to make the practice scalable and flexible for the business. The organization has the primary goal of achieving benefits at a time when there is severe downturn (Balán, 2012). The organizations recognize that in some cases, there are some operations and activities that are unnecessary in the achievement of the goal ( Olson, 2010). Therefore, proper outsourcing of such activities such as raw materials of a particular commodity could help in the achievement of the significant benefits of supply chain operations. There is no institution that is completely safe from a downturn in a capitalistic market. It is possible that the organization will experience negative outcomes hence the need to identify measures that can help rectify the problem.
References
Balán, J. (2012). Research universities in Latin America: the challenges of growth and institutional diversity. Social Research: An International Quarterly, 79 (3), 741-770.
Latukha, M. (2011). To stay or leave: Motives behind the decisions of graduate programs' trainees' in European and Russian companies. Journal for East European Management Studies , 140-161.
Olson, E. G. (2010). Supply chain opportunity in an uncertain economic recovery. Supply Chain Management: An International Journal, 15 (6), 488-492. https://doi-org.ezproxy.liberty.edu/10.1108/13598541011080464
Pilbeam, C., Alvarez, G., & Wilson, H. (2012). The governance of supply networks: a systematic literature review. Supply Chain Management: An International Journal, 17 (4), 358-376.
Vasquez, D. (2014). Employee retention for economic stabilization: A qualitative phenomenological study in the hospitality sector. International Journal of Management, Economics and Social Sciences, 3 (1), 1-17.
