Supply Chain Management

Today, supply chains are extensively globalized because of the rising effectiveness of transportation and logistics, internationalization of production and consumption and investments in emerging markets. Predictions show that trade will keep on thriving and, as a result, entry areas will increase in number and magnitude. While trade rests high on the global economic plan, the supply chains department, which is vital to the growth of performance, has been left out. Supply chain appears an invisible service that is taken for granted by most people. Supply is vital to any company’s competitive approach, and survival in the market. In the current century, the supply chain management anchors every aspect of the daily operations of today’s companies. 1. Why supply chain management issues have often been ignored by senior management According to Dutton, (2009), “The more successful a company becomes, the less supervisors see the need to address supply chain problems.” Managers in the top level do not see strategies as an essential area in the company. As stated, one of the reasons is the productivity of the company. They base their concern on the advantage edge of the company. Where a company has a greater advantage edge and transport and strategies becomes a minimal price, supervisors hardly dedicate themselves to supply management. They focus on what has greater profits. However, when the company is in difficulty or profits are going down, supervisors will recognize the need of efficient management of the supply chain since every little price will matter. Therefore, when the advantage edge is going down, every possible way of restoring it is sought. Supply chain supervision ranks among the ways that a company can improve its advantage edge through appropriate acquisition and control of stock from purchase to delivery to the customers. Through supply chain and strategies, control price can be stored, thus improving the advantage edge. Normally, supply chain management will merge several functions, stating with purchase, financing, legal rules, distribution, sales and transport. Top managers may not understand the relationship of all this. Thus, lack of expertise or lack of enough information regarding supply chain management may cause their lack of knowledge of supply chain. Thus, there is the need for underscoring the significance of supply chain management to make the top managers appreciate that supply chain management performs an essential part in the performance of the company. Rudski (2008) suggests that the administration disregards the management of supply chain because they are not entirely conscious of its complete prospective in fixing some of the problems that they face. He inquires whether this should be held responsible on the top managers or to the supply chain managers for inability to educate the company administration about the prospective of supply chain management. This is tough to answer, but would vary from one firm to another. Nonetheless, one thing can be held responsible as to the reason why managers will neglect supply management. This can be lack of synchronizations between the top management department of supply chain, as well as, other divisions engaged. 2. Strategy that would be employed to sell senior management on the benefits of focusing more attention on supply chain management To be able to attain the total prospective of supply chain management, there is the need of cooperation between the senior management of the company and the management of the supply chain together with other organizational divisions. There is a need for an incessant flow of information and support among the unit bearing in mind that supply chain will involve most of the divisions. Therefore, a way to include senior managers in collaboration to be able to attain the total potential needs ought to be designed. The technique would mostly consist of promoting the concept that supply chain control will fix some of the problems they are concerned to accomplish. The first step would be lining up supply chain management with some of the objectives the administration desires to accomplish. Some of this consists of, improving the income of the company further than the target, accomplishing growth season after season, minimizing risks to shield income and earnings, improving the return on investment for investors as well as accomplishing competitive advantage (Rudski, 2008). The practice would consist of interpreting how supply chain control would accomplish this. After interpreting the ways through which this can be carried out through supply chain, interacting with the managers to create understanding about its prospective in accomplishing their objectives would be next. This will need conviction to persuade the managers. This would need facts of how supply control can enhance and accomplish some of their objectives such as improving the return on investment. This can be done through cutting costs, which is possible through supply chain and improving revenue through customer care (Dutton, 2009). This improves the profit edge while at the same time decreases costs, which has a remarkable outcome on the business performance. To sell the concept, several other tactics to persuade the management can be used, such as demonstrating the practice of other organizations that have obtained achievements through supply chain control. Showing the managers this difference before such a company applied supply chain control and after applying it within the top management to enhance company performance can help in persuading the managers further to execute the concept. Moreover, the evaluation of the company and its present position compared to such a company showing advantages of supply chain management can actively engage the managers into the implementation of the idea (Dutton, 2009). 3. Benefits that might be gained from working closely with 3PLs, 4PLs, and vendors in promoting supply chain management initiatives to senior management. In an effort to endorse the concept of supply management, it would be valued to use some of the stakeholders that play a leading role in making the chain of supply to be an achievement. These consist of the suppliers and vendors, as well as, operating in conjunction with 4PLs and 3PLs. One advantage of dealing with these stakeholders such as the 4PLs and 3PLs is that they have an extensive experience to different organizations within different sectors (Dutton, 2009). They can help the company in reducing mistakes and tests since they have enormous encounters to offer, as well as, the necessary analytics. Furthermore, bearing in mind they are unbiased to the company, they stand a superior opportunity of convincing those that might be opposed to the utilization of supply chain in advancing business performance (Rudski, 2008). Moreover, considering that supply chain control entails more integration between the company and the suppliers, operating closely with them in selling the concept to the management helps in demonstrating the commitment of the engaged stakeholders. This confirms to the management that what is required is available. According to Dutton (2009), “Vendors are our eyes on the ground, and we work together to improve performance.” Therefore, suppliers are an associate of any supply chain management if achievements are to be obtained. Thus, in selling the concept to the management, suppliers perform an essential part to persuade the managers that the required element for performance is available. References Dutton, G. (2009) Selling the supply chain upwards. World Trade, Troy, 22 (9): 34, 37 Rudski, R. (2008). Supply Management Transformation: A Leader’s Guide. Supply Chain Management Review, New York, 12 (2): 12, 1pgs.