M.Sc.in supply chain management (DT351) Essay Example | Topics and Well Written Essays - 3000 words

M.Sc.in supply chain management (DT351) - Essay Example Supply chain management is an important aspect of business management that involves the effective management of the supply chain to ensure timely delivery of goods to the consumers. This highlights the essential role played by all companies that an organization engages in the processes of product delivery to the final consumers. According to the national institute of transport and logistics, the tenets and elements that guide the operations of supply chain management are included in the four fundamentals of supply chain management. In this section of the paper, the fundamental elements of logistics management will be discussed and specific examples defining the examples provided. A case study of Nike’s application of the above four fundamentals in the production and service delivery processes will also be analysed to provide an empirical illustration of the applications of the fundamentals (Sweeney, 2002). Fundamentals of supply chain management Based on the NITL definition, t he first fundamental of supply chain management is the identification of an objective the process seeks to achieve and serve. According to the supply chain objectives in an organization, the company must always seek to exceed the expectation of the target market through the improvement of its supply chain and reduction in the cost of operations. Thus, every organization has an objective to maximize its product delivery to a level that exceeds the market demands. Supply chain management approaches that integrate the fundamental of objectives ensure that organizations understand the service/cost approaches in the product delivery processes. Thus, it is understood under this dimension that the requirements of customer service are dictated by the market place dynamics that affect supply chain (Sweeney, 2002). The second fundamental of supply chain management is philosophy, a tenet that is guided by the desire to deliver highly quality products to the final consumers. The final delivery of products to consumer is the ultimate source of money and revenue to an organization and it must thus occur through a process that integrates the input of various companies within the supply chain. Any ineffective input in the processes of service delivery within the chain can result into ultimate failure of the entire chain, resulting into significant losses to the organization. From this aspect of philosophy, it is evident that competition in companies has revolutionized from being one based on one company versus the other to different supply chains. It is thus common to find effective supply chains in different companies increasing their competitive advantage and productivity. The philosophy fundamental of supply chain thus seeks to provide the understanding that any weak point within the process of product delivery increases the fragility of the entire chain. Supply chains acts as a two-way flow of goods and money, with goods flowing from the company to the final cons