ENGG 939 Case Study Week 11

Name: Waleed Wasim

Student Number: 5176694

Word Count: 725 words

Designing and operating effective global networks is a fundamental source of competitive advantage
for manufacturers. As networks have become increasingly complex and fragmented, it is more
important than ever that international manufacturers are able to ‘make the right things in the right
places’, have agile and resilient supply chains, and the right people and processes to run them.

Companies that neglect the important aspect of developing the supply chain often pay the price with
cost, quality, lead time and customer retention. It is sometimes difficult to let the top managers
understand the significance of supply chain management as it often comes down very low in their
priorities. However, progressive companies do understand that managing the supply chains improve
lead times, decrease costs of warehousing and inventory control, and increase the overall control
against unknown variables.

Supply chain management is essential to organization success and customer satisfaction because it
includes all of the activities that lead to the success of the organization from beginning of planning,
management of all activities and operations of create the sources, the procurement and logistics
(transport, warehouse management ,inventory management And so on) and marketing operations
as well as coordination and cooperation between all parties involved in the supply chains of
suppliers and service providers and client.

Since supply chain management is essentially the control of all activities performed by the
organization from beginning i.e. planning, procurement to operations and finally the logistics and
delivery of the final product to the consumers. It is therefore, not possible to integrate any new
innovative techniques/procedures or equipment without altering the supply chain itself and thus
newer innovative techniques would have to be ingrained within the supply chain itself in order to
actually reap the benefits of the newer technologies that have been acquired by the organization.
[Lambert et al]

Also, it is also important that newer and contemporary ideas within the supply chain network itself,
since smaller improvements to the network can have huge results due to the very nature of the
supply chain network, since a small improvement in a particular process will create a ripple effect
within the whole system. Newer trends such as lean manufacturing, just-in-time inventory, reduced
product lifecycles, outsourcing, and supplier consolidation have yielded compelling business
benefits, they have also introduced new kinds of supply chain risk and reduced the margin for error.

One step towards innovation in supply chain management is simply to break the rules. Sabath and
Sherman encourage supply chain managers to break these rules:

1. Supply chain is not strategic

 2. All customers are created equal

3. Manage for minimum cost

4. Always use optimization models to determine the location and level for manufacturing and
inventory

5. Ship very parcel order the day the order is received [Sherman & Sabath et al.]

In order to stay competitive globally and remain on the cutting edge of a complex business world,
more companies are incorporating technology into their supply chain management systems today. In
recent years, consumers have become increasingly demanding, setting their expectations high when
it comes to quality and service. At the same time, supply chain managers have come to realize that
the latest technology can help them ensure better accountability and visibility, allowing them to
maintain tight control and stay ahead of the pack.

Today’s technology has extensive capability when it comes to keeping a company’s production on
track, anticipating and repairing mistakes, and making modifications that guarantee a top-quality
product. Every link in the supply chain can be monitored simultaneously, and automated notification
systems are especially valuable for sending a single message to many players through a variety of
media channels.

Computerized shipping and tracking, and electronic invoicing, are also core components of a modern
supply chain management system that is designed to keep customers satisfied. [Wu, Kim & Cavusgil
et al]

References:

 Sherman, R. and Sabath, B. (2013). Want to Innovate? Break the Rules. Supply Chain
Management Review.
 Lambert, Douglas M., Martha C. Cooper, and Janus D. Pagh. "Supply chain management:
implementation issues and research opportunities." The international journal of logistics
Management 9.2 (1998): 1-20.
 Wu, F., Yeniyurt, S., Kim, D., & Cavusgil, S. T. (2006). The impact of information technology
on supply chain capabilities and firm performance: A resource-based view. Industrial
Marketing Management, 35(4), 493-504.