Give the brief introduction of SCM framework
Answer: Supply chain management framework help the management by framing the flow of goods and services. This framework help to structure the movement as well as the storage of the raw materials, work in progress along with the movement of the finished goods from the goods point of the origin to the point of consumption. Supply chain enables the organization to interconnect, interrelate, channels as well as node businesses combined together for the product or services. The supply chain management is define as the execution, planning, controlling, designing as well as monitoring the action that is going to take place in the process of the supply chain management system. In recent times, the supply chain management is mainly concerned with the sustainability as well as risk management process in an organization.
When did the SCM framework has started and whom?
Answer: In the year 1982, Keith Oliver is the one who introduced the term, supply chain management in an interview in front of the public for the first time. The term gain popularity and more frequently used after the books and article related to the term came out in the market. Initially the concept is supply chain management mainly deals with all the activities which is associated with the flow as well as the transportation of goods from one place to the others. It is use to gain a competitive advantage with the help of the supply chain management. This is how the concept of supply chain management came into existence in the market and now it is use to compete in the market by the organization.
What was the need of this SCM framework?
Answer: Supply chain management is need to enhance the business in the market as it help the company to enhance many aspects of the organization, which will ultimately help the organization to earn huge sum of money and profit from the market. The need of supply chain management in the organization are:
- In maintaining the customer relation management so that customer retention is higher and organization can earn huge sum of profit from the market.
- It also helps the organization to maintain a supplier chain management, where the firm makes an effort to build a relationship with the suppliers.
- It helps in customer service management so that the customers are satisfied with the services provided by the organization.
- It enables the organization to deal with the growing demand of the goods and services in the market.
- It helps the organization in the fulfilment of the orders that are being receive by the organization from the customer end.
- It helps the company to manufacture a flow management system, which will ultimately help the organization to maintain a constant flow of goods and services in the market.
- It helps in product development and commercialization of the goods and services in the market.
- It helps the organization in the return of goods from the customers to the producer if the products are not up to the mark.
What is the uses of these SCM frameworks?
Answer: There is huge usage of the supply chain management in an organization to run smoothly and steadily, so that the organization can earn huge sum of money as a profit. The uses of the supply chain management are as follows:
- It helps in the synchronization of the activities in an organization so that the organization can run smoothly and without any interruption.
- It is use to match the assets of the company with the demand in the market which will help the company to sustain as well as grow in the market.
- It is use to identify the internal exchange which is involve between the SCP as well as S&OP process.
What is the advantages of SCM framework?
Answer: The advantages of supply chain management are as follows:
- The supply chain management increase the responsiveness of the organization. It also help the organization to capitalize new opportunities in the market so that the company can earn huge sum of money.
- It provides benefit to the organization by enabling them to adapt new technique so that they can met with the customers demand.
- It enables the company to track and monitor compliance.
- It enables a tight connection with the trading partners of the organization.
- It help to lower the cost of the company as it gives assistance to the organization and co-ordinate with the partners.
What is the disadvantages of SCM framework?
Answer: With every advantage, there are some disadvantage in the framework of the supply chain management. The disadvantages are as follows:
- The framework requires extensive planning and training to successfully structure, the framework works so that the company can earn huge sum of money from the market.
- There is a lack of strategic implementation of the strategies due to the use of supply chain management.
- There is a lack in the surprise demand planning as there is no planning which is done in case if there is a surprise raise in the demand graph of the goods and services.
- If the information, which is used to determine the supply, is inserted incorrectly then the results will be wrong which may cost the organization a huge sum of money in the end.
