Supply chain management has evolved from a simple focus on improving intensive labor processes to the present day of managing and incorporating extraordinary and global complex markets. The initial focus was on how to utilize mechanization. After a period of adoption, it was extended to transportation management. The emergence of technology provided an opportunity for planners to integrate new environment for planning (Robinson, 2018). The introduction of Enterprise Resource Planning further facilitated a room for improvement of supply chain management. This is because they started integrated more data that existed in various companies. After 1990, globalization spread the adoption of supply chain management to the whole world.
Significance of Supply Chain Management
Supply chain management plays a significant role in inventory in an organization. This is because it identifies flaws that may exist within the supplying department and in return increases the profit leverage. Supply chain management is very important in facilitating an organization with methods that can speed up valuable products flow to consumers. An organization is, therefore, poised to benefit if it utilizes the aspects of supply chain management.
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Supply Chain Performance Measurement
The performance of a supply chain can be measured according to two categories. Firstly, performance can be measured in terms of qualitative aspects. This category includes but not limited to; customer satisfaction and the quality of the product (Agami, Saleh & Rasmy, 2012). This is a suggestion that the customer and quality should be given the priority if the supply chain has to be effective in terms of qualitative aspects. The second measure is in terms of quantitative aspects. Supply lead time is considered key. The response of the customer, flexibility, utilization of resources and delivery performances are also important in determining supply chain performance.
Significance of Supply Chain Management to Senior Management
Supply chain management is very important to senior management. This is because supply chain management consists of various flows that are very significant in an organization. Flows such as financial and information flow help the senior management in adopting effective measures to attain success. They in return generate values by boosting collaboration with suppliers, increasing productivity and reducing costs.
References
Agami, N., Saleh, M., & Rasmy, M. (2012). Supply chain performance measurement approaches: Review and classification. Journal of Organizational Management Studies. 1-20. DOI: 10.5171/2012.872753
Robinson, A. (2018). The evolution and history of supply chain management. cerasis. Retrieved from https://cerasis.com/history-of-supply-chain-management/ .
