Assignment on Literature Review of Supply Chain and How Is the Effectiveness in the Global Economy

Selen and Soliman (2002) conducted research to evaluate proposed supply chain management and reflect the role of SCM concept that shift the power from suppliers to the customers in the analysis and evaluation of supply chain management. Their research focused on the new product development, capacity and in-house technology. The researchers identified that supply chain strategy in the market economy is designed to induce a push on customer-based process and forecasted demands. The production process across the whole supply chain is highly synchronized with the efficient utilization of the resources. The synchronization induce impact on sourcing, processes, and production process of supply chain in order to obtain the optimal performance.

According to Hammer (2001), the company need to integrated number of process to enhance quality of services, reduce costs, and improve process of speeding up the operations. The supply chain entity in the business are multiple customers and multiple suppliers. Simchi-Levi, Kaminsky, and Simchi-Levi (2003) determined framework matching with the strategies of supply chain for industries and products. The importance of supply chain in the companies was considered at economic scales (Kaminsky & Simchi-Levi, 2003).

Stadtler (2015) has proposed the essence of Supply Chain Management into an exclusive description that has certain elements such as a. the entity of the management values, b. the objectives, c. the target group, and d. the broad definitions intended for accomplishing the objectives. Furthermore, the object of Supply Chain Management is clearly the description which mentioned that a supply chain denotes to a system of companies that are integrated, over both upstream and downstream connections, within various activities and practices that generate the value in the presence of products and services deliver to the end customers. Within a broad logic, a supply chain is a body that contains two or further officially separated companies, being connected by materials, information, as well as the financial flows. These integrated companies might come from the enterprises that manufacturing the components, parts and the final products, the providers of logistic services, as well as the customer. Thus, the author has assumed that the above description regarding a supply chain also integrates the target group which is the final customer.

On the other hand, in a constricted sense, the context of the supply chain has also applied to a big company with a number of sites which frequently located in various countries in whole over the world. For this reason, the processes of organizing the entire materials, information, along with the financial flows meant for such an international company within an efficient business manner is yet considered as a difficult task to be completed. Conversely, the author has suggested that the processes of decision-making should be formed easier. The reason behind this is due to these sites are included as part of a big organization with an exclusive topmost management level. Thus, a supply chain within a broad logic has also named as an inter-organizational supply chain. Meanwhile, in the constricted logic, a supply chain has titled as an intra-organizational (Stadtler, 2015).

Stevens and Johnson (2016) have described a Supply Chain Management as a discipline which has developed speedily throughout the time. The initial focus derived from the establishment of Supply Chain Management was started at the time when some organizations have started to enhance their inventory management, the planning for production, along with the control as well. The purpose of these entire practices was to enhance the efficiencies of production while also making sure that there is an efficient usage of the capacity acquired by the capital assets along with the machinery. This comprehensive upstream in integrating the management of raw materials’ transportation when the companies were moderately and vertically integrated. Furthermore, the authors have also stated that supply chains are considered to be integrally unbalanced. The main role of Supply Chain Management is basically to minimize the entire risks along with the uncertainty related to the logically appearing unbalanced level of the supply chain itself. In addition to this, the article also mentioned that the dynamics of supply chain have underlined the issue of the dependable information “transmissivity” throughout the supply chain. For this reason, both upstream and demand load are postponed and partial as the upstream progress of information, in which such that deviation has been intensified along the Supply Chain. This uncertainty, paired along with the unavoidable problems of predicting and data veracity which put the concentrate on the supply chain unbalanced. Even though the technology has been utilized to generate excellent effect which aims to enhance the flows of information, but still, the improved diffidence of a global market place beside the base of supply, all of these together with the requirement to handle an increasingly complicated system has aggravated the issue. Besides than the issues triggered by the information falsification along with the base of global supply, the organizations have started to experience more pressures in the 21st century, which derived from the customers and also the other stakeholders, whereas the supply chains are requested to operate the business as the ethical and green supply chains. This definitely requires the organizations to convert further obvious in the contexts of revealing their supply resources, which would eventually increase the costs and might also bring pressure for the supply chains to move away from the lowest-cost economies where there is poor labor rights appearance (Stevens & Johnson, 2016).

Lamberti and Pero (2019) have proposed that Supply Chain Management defines as a complicated and extensive undertaking that depends on every partner – from the suppliers toward the manufacturers and further than that – in order to operate the business properly. Due to this fact, an active Supply Chain Management as well oblique the change in management, great collaboration, along with the management of risks, with a purpose to shape out arrangement and communication between all of the participants. Moreover, the article has also detailed the benefits delivered by the Supply Chain Management which mentioned as the lower costs, higher profits, innovative efficiencies, as well as improved collaboration. Supply Chain Management has been approved to enable the companies to manage and handle the demands better, convey the exact inventory amount, deal with certain interruptions, maintain the costs to remain low and also achieve the demand from the customers within the most potentially effective approach available. All of these benefits of Supply Chain Management could be achieved by selecting the effective strategies which supported by appropriate software utilization to manage the enhancing complexity faced by the supply chains in these modern days (Lamberti & Pero, 2019).

According to Fiorino and Bhan (2016), Supply Chain Management has certain significant effects on both the company and also the customer. In the context of the customer, the business activities performed by Supply Chain Management have the capacity to develop customer service. If this could be done effectively by the companies, then they would gain the capability to make sure the satisfaction of customer by generating certain the compulsory products to become available for the entire customers at the right time and at the exact location. As a consequence, by improving the level of customer satisfaction, the companies would be able to construct and enhance customer loyalty as well. In addition to this, the Supply Chain Management also has the capability to provide the main advantage for the companies by reducing the costs of business operation. The business activities performed in Supply Chain Management could also decrease the cost of production, purchasing, and the entire costs in a supply chain. Reducing the costs will definitely improve the financial condition of the company by elevating the cash flow along with the profit. Additionally, if the company succeeds to follow the best practices of Supply Chain Management will able to minimize the overdoing of huge static resources described such as vehicles and warehouses, by permitting the experts in supply chain to restructure their system. For instance, in order to preserve the levels of customer service, and at the same time also operating more than one warehouses, then a supply chain will able to decrease the costs of acquiring three more extra accommodations(Fiorino & Bhan, 2016).

Another assumption comes from Yawar and Seuring (2017) which stated that maybe the minor understanding and underappreciated appearance will be in the context of Supply Chain Management’s role within society. For this reason, the authors have mentioned that Supply Chain Management has the capability to make sure the survival of human beings by enhancing health care, securing people from the extreme climate, and also maintaining life. In fact, in these modern days, people have been relying on the supply chains to provide some essential needs such as water, food, medicines, and also health care as well. Furthermore, supply chain has also considered being quite vital in distributing electricity top both home and companies, offering the required energy for heat, light, air conditioning, and refrigeration. Another significant role of Supply Chain Management was mentioned to be in improving the life quality by adopting the creation of job, providing economic development foundation, as well as enhancing the living standards. The reason behind this is due to Supply Chain Management provides a mass of job occasions as the professional of supply chain project and also control the entire supply chains that exist in a society, notwithstanding also managing the control of inventory, packaging, warehousing, and logistics(Yawar & Seuring, 2017).

According to Nooraie and Parast (2015), the system in the supply chain can be described as the method of how the company converts the raw materials into the end products and services, then deliver them to the end customer. At this point, it is reasonable fact that the companies need to manage every single step of the supply chain, with a purpose to ensure that it would be the most efficient one. As a consequence, a number of companies outsource jobs to some countries which have famous to have a lower living cost. In fact, there are a lot of companies that vertically assimilate, in order to get full control of the supply chain. The reason is due to this would provide those companies further control over their costs and process of production. One great example can be seen from Apple Inc. which has succeeded to maintain its high quality of design over the vertical assimilation from the design itself over retail. This has given the company an adequate competitive advantage which is practically considered as a monopoly when the company distributes its high-end and innovative smartphones, computers, also music players as well. Furthermore, the authors also have argued that the financing derived from supply chain has been particularly supporting the small-sized companies since it offers a great opportunity for the companies to earn better terms of financing. Therefore, the authors have concluded that efficient Supply Chain Management has the capability to decrease the costs, optimizes the value of customers, as well as optimizing the competitive advantage for the companies. In fact, Supply Chain Management involves effective collaboration along with the control of connected departments, sectors, systems, as well as organizations. As a result, all of these will support the production flow as of the conceptualization to the products’ Point of Sale or POS toward the end customer. For this reason, the companies that implement the Supply Chain Management could be further flexible, solid, and also less dependent in the contexts of their profits and cash flows (Nooraie & Parast, 2015).