The Fast-Changing Market's Impact On Supply Chain Management: An Essay.

Supply Chain Management is the core unit of Master of Business (Operations Management). The unit provides the mission, business processes and strategies needed to achieve integrated logistical management. It also introduces various ways and approaches to achieve successful supply chain management which requires cross-functional integration of key business processes both within the organisation and across the external network of organisations that comprise the entire supply chain. The table below outlines the learning outcomes for this unit. Upon completion of this unit, students will be able to: The table below outlines the unit learning outcomes (ULOs) for this unit. Upon completion of this unit, students will be able to: 
1. Describe supply chain and logistics processes and explain the underlying principles that support their effective management. 
2. Elaborate on the role and importance of customer relationship management and its importance in developing an effective and efficient supply chain. 
3. Identify the various elements of supply chain and logistics management processes and critically evaluate their role and interdependence in effective supply chain management. 
4. Interpret, from a strategic perspective, the role and importance of supply chain management in enhancing competitive advantage. 
5. 
Define and evaluate the networks and relationships present within supply chains. 
6. Apply important tools and techniques for designing, operating and evaluating the performance of an effective supply chain management system. 

Understanding the market your company serves

The study in supply chain management is taking a complex path due to the rapid expansion in the way logistics, purchasing, transportation, operations management, marketing, and R&D are being influenced by the emerging supply chain management issues. These issues are data archiving mechanisms and tools of production, globalization, quality and compliance and fast-changing markets.

According to Michael (2018), these issues are not just emerging, but they are continuous evolution under the influence of technology. Due to strategies and logistics geared towards improving the way supply chain management operates, there are no inception new supply methods. He believes the trend being experienced in supply is gradual input geared towards achieving a revolution.

 The reason for this paper is to illustrate and explain the how fast-changing market has impacted the supply chain management and how manufacturers can embrace this in improving the supply. Mohammed (2015) says the fast-growing market has a fundamental issue in supply chain and it right to bring out problems such as the competitiveness of supply chain, collaborative supply chain, and ethics supply chain environmental consideration in supply chain management and supply chain integration through market strategies that are put in place by supply chain management.

 This paper will also explain how fast-changing market affects the behavior of the supplier and that of consumers.

Fast growing market has also been in association with supply chain management problems. The paper will take a look at some challenges and how to cope with a fast-growing market.

Background

Markets consist of customers, sellers, supplier, and an intermediary who interact direct or indirect with each h other. For customer needs satisfaction, supply chain management looks at many factors. the retailers, manufacturers, and means of propulsions are vital things to identify if any administration wants to take control of the market and maintain a monopoly of customers. In the world of economy, each business organization or a company has its chain of distribution which will lead the product to the market.

If these means of information, financial and material does not flow and move with changing market the supply chain will not meet its intended purpose and the industry will not enjoy competitive advantages, Christopher (2016). Since customers compost of what we call the market, supply chain management should work towards giving and getting the right information to and from the customer. Due to this, the market has expanded and is rapidly growing as the onset of technology has brought different forms of interactions and exchange, what is known as, virtual market.

Research: How to Cope with Fast Growing Economy  

Understanding the market your company serves.

Due to the fast growth of market and expansion of the same, any industry wishing to sustain its customers and increase the supply, it should define its market, know who are your customer, their needs, nature to which your customer extension. You must also embark on identifying the type of supply chain you’re using. Anthony and Mellissa (2017, p.99), argue that the knowledge of these questions and their solutions will enable you to know precisely the kind of supply chain your using. And by knowing this, one can define the extent to which they can venture to the market. Knowledge of customer and mechanism of supply places any company at the center of growing demand. Being at the center of the market, any new idea, platform or a new customer, will be easy to adopt and easy to work in or with.

Aligning the supply chain with business strategy

Customer perception of products is under the influence of culture, social; preferences, and psychological factors. These are being affected by changing technology and globalization. The social platform like online marketing, e-commerce is forcing consumers to adapt to them while mounting pressure on suppliers to conform to them. If any of them is not able to cope with these marketing changes, they are forced to adopt, or they are left. Adapting means, you are moving at a speed of growing market while lagging factors, collapsing of your company.

Aligning the supply chain with business strategy

Any business organization’s supply chain serves as a nerve for its market strategy. It means the supply chain has to conform to any change in the market. It is through a business strategy that the supply chain management meets these market demands. Any marketing strategy a company employs must be with a line of customer’s needs. Through these needs, the organization’s efficiency will have a determination of the ability to catch up with a growing market and cater for the customer appropriately Hugos (2018, p.28). A company which does not cope with the fast-growing market will not compete with others maximally.

The changing competitive environment

As the market context of continuously expanding and growing, it brings new complexities. These complexities need to be in alignment towards business objectives. The rapidly growing market will impact on logistics and supply chain management generally on the way the organization intends to maintain customer loyalty, supplier and distributor turnover and the employee it has. For the balance of these factors, the company should act towards adopting the new changes brought by the growth of the market. It will enable it to meet customer demand and increase market shares.

Why the fast-growing market is essential for supply chain management and the reason why any company should strive to fit in growing market economy.

For any organization wishing to minimize the cost of supply and improve customer relations, should be ready to embrace the new e-economy brought by expanding the market. It is because:

The road to marketplace-growth in a market economy means more customers for the company. The higher the number of customers, a company ought to source for more suppliers and distributors of its products. The choice of multiple channels enables the company to increase market shares and command a considerable profit accrued from the various supply chain. There are many channels of supply. Knowledge of market will ensure that the supply chain management is going for the best route for their product to reach the market. If the company is dealing with perishable product and its market has expanded to international markets, they have to choose means like air transport. Knowledge of the market to the supply chain management ensures them to merit the speed and high cost of such products.

Supply chain visibility Wolfgang (2017, p.16) put it that, efficiency and visibility of any chain supply management, is directly proportional to the ability to perform well in the market without disruption. With the knowledge of growing demand, potential distributors will know the timing for market supply, the type of audience to distribute to and the consumer preference and taste. Minimization of transport cost and intensity of freight in a fast-growing market, supply chain management has to identify where the potential customers are and .

The changing competitive environment

device a means of communication. With increased technology, the administration will cut the cost of transport by having online ordering of goods and services. It can be done through, website conferencing-commerce meeting and virtual community. In such platforms, supply chain managers have to know their target customers, and all inventory data be in one place. It will reduce transport cost and related expenses. Mangan and Chandra (2016, p.5), says that the knowledge and logistics of such markets are geared towards deregulation of transport because both supply chain management and a potential client can meet virtually, transact virtually and business move on well.

    Supply chain management, a fast-growing market in future

Through global value chain, chain supply management has expanded its market at a high rate, and this involves; the spreading the design, manufacturing, assembly, and distribution of goods and services in large volumes to the market. The future of fast-growing market entails looking at how these have evolved and the challenges they face in the evolving world, Deborah and Patrick (2013, p.1). The approach to the way these features of marketing will be under the direction of the supply chain. The management will dictate whether the supply chain will survive the rapid growth in the market or not. The approach is multidisciplinary, with contributions from economists, political science, supply chain management specialists, practitioners, and policymakers.

The challenges facing the fast-growing market in supply chain management.

Due to the complex nature of supply chain management, there are various challenges which are brought by the change in the market structure and composition as the market keeps growing due to a fast-growing market, firms and other business organization are finding it difficult coping with traditional approaches of seeking trades offs among the various conflicting objective of critical functions. This challenge affects the way goods, and services reach the market. Purchasing, production, distribution, and sales along the supply chain no longer worked very well with the growing market economy.

These traditional ways of doing things need to be adjusted if any supply chain management wants to catch-up with the trend in the market. Customer needs and preferences are also changing.

The challenge of co-coordinating and integrating the flow of materials from a multitude of suppliers, often offshore, and similarly managing the distribution of the finished product byways of multiple intermediaries. In the past, it was a relationship with suppliers and downstream customers is the modern challenges as traditionally, suppliers and distributors were adversarial, unlike today where you need to cooperate with them (Bose, 2016, p. 45).

Another challenge is in downward pressure on price; most fast-growing markets are more price competitive today than they were a long time ago. The rate on the high street and in shopping malls continues to fall in many countries. These price reductions can be in attribution to the experience effects and average cost reduction through learning in a growing market.

Conclusion

This paper provides us with apparent knowledge of critical contemporary issues in Supply Chain management and logistics. This paper also gives the importance and need for the companies to embrace this current change in the market due to the fast growth rate. The research also looks at the challenges faced by supply chain management in a fast-growing market, and analyze why effective Supply Chain management should strive to adapt to these changes in the market. The future survival of supply chain management in a fast-growing market has come up and how the administration needs to work to survive these changes. The background information also gave us the reason these companies need to realign towards the fast-growing market in supply chain management.

Recommendation

Over the years, most industries have focused their ideas on the effectiveness and efficiency of separate business functions, like, distribution line, transport methods or customers’ needs. Due to a fast-growing market, firms should look for a new way of doing business; these new ways can be achieved through a strategic approach of planning, controlling and designing a supply chain to align themselves towards the fast-growing market. It is upon the supply chain management to capture the synergy of inter-functional and inter-organizational integration and coordination across the supply chain and subsequently make a better supply chain decision towards the fast-growing market.

References

Anthony, M &Mellissa G 2017, Contemporary Issues in Supply Chain Management and Logistics. Business Expert Press, LLC, NY 10017.

Bose, S. 2016, Sustainable 2020: Future Supply Chain through Spyglass.Lulu.Com.

Christopher, M 2016, Logistics & Supply Chain Management. Pearson UK.

Deborah. K, & Patrick, L 2013, Global Value Chains in Changing World. World Trade Organisation. NY.

Hugos, MH 2018, Essentials of Supply Chain, Management. John Wiley &Sons.

Mangan, J & Chandra L 2016, Global Logistic and Supply Chain Management. John Wiley &Sons. NY.

Mohammed, KO 2015, Contemporary Supply Chain Management Issues. Lap Lambert Academic Publishing.

Wolfgang, L 2017, The Global Supply Chain: How Technology and Circular Thinking Transformer Future. Springer. London.