Adding Value Through Scm - 1094 Words

DB Forum 1 Adding Value through Supply Chain Management Dale Crowe Economic Theory of Adding Value through Supply Chain Management Young (2012) writes that supply chain management (SCM) is a function of collaborating firms working to improve operating efficiency and to leverage strategic positioning. In addition, Young references this function as not only the physical attributes of product distribution, but also to include related information, such as production or delivery status, and the capability to access such information. Such capabilities allow SCM to be an important link in fulfilling customer needs and providing value. Young adds that in the current customer-driven market, the perceived value of the entire relationship†¦show more content†¦The change and new sourcing strategy reduced the complexity of their supply chain and resulted in fewer disruptions. As demand increased for Caterpillar’s equipment, their supply chain was getting bogged down and operating slower causing orders to be delayed. With their new sourcing str ategy, customers were allowed to order from â€Å"lanes† with readily available options, as opposed to having to fulfill customized orders as they occurred, enabling a more proactive approach throughout the company (Katz, 2011). The lane strategy has helped Caterpillar improve their ability to meet customer demand; as this system consists of four ordering lanes serving a variety of infrastructure equipment models that enables its dealers to offer a wider array of customization choices with different lead times; customers are also given information on how to access these lead times and get order status updates (Katz, 2011). This type of information is one of the value-added services available from SCM. Conclusion Successful SCM is a function that adds value and increases the connection between the customer and the organization. Enhancing customer value and other value-added offerings is a driving force in the goals of an organization. SCM is a link to the successful achievement of those goals. Excellence in SCM brings real customer value and strengthens an organizations relationship with itsShow MoreRelatedUnderstanding Logistics Management and Supply Chain Management1746 Words   |  7 Pagesmeaning in operations Briefly explain how logistics management adds value to the operations of a manufacturing or service organisation. Introduction Logistics management and supply chain management are similar terms in business logistics, but these two terms are not the same (Murphy and Wood 2011, p22). In different decades, scholars made use of their knowledge and experience to define logistics management and supply chain management (SCM). 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Finally, it focuses on Global Product ion Network, describing how important labour and states are, as well as showing the limitations of this extremely complex scheme. Mainstream view and its criticism This first section provides a general discussion of the Supply Chain Management mainstream idea supported by Christopher. This framework focuses strictly on the firm and how Supply Chain Management (SCM) is addressed from a management perspectiveRead MoreIntroduction to Supply Chain Management System: Dell Computer Corporation1451 Words   |  6 PagesIntroduction to Supply Chain Management (SCM) System Supply chain management (SCM) is the combination of activities which help a company to improve the methods to make a product or service and deliver it to customers. (Larson, 2004) SCM encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. 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