The Theory of Supply Chain Management

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Business organizations incorporate supply chain management skills in the day-to-day operations. These are techniques involved in the distribution of raw materials from the production site to the processing stages, the movement of the processed goods to warehousing and finally to the consumption points. The supply chain management needs to support the operations management efforts towards efficiency, timesaving and other factors. The paper discusses the theory of supply chain management, global supply chain management practices, and how the supply management supports operational efforts.

Supply chain management theory is the supposition of ideas that tent to elaborate the management of the flow of goods and services as from the hard point to processes. The stages involved in the movement and warehousing of raw materials, distribution of inventory and finished goods from the point of origin to the point of consumption. Supply chain management assists the business organization with skills and ability to compete in the international border fence and across the region (Zhu Q. et al. 2013). The objectives are to incorporate activities and features across and within organizations to enhance consumer value and satisfaction. The main aim of every profit-making business organization is to maximize outcome value through minimization of input budget, but satisfying the intended consumers (Zhu Q. et al. 2013). Moreover, the primary objective of non-profit making organizations is to balance the revenue received in the expenditure budget.

One of the theories of SCM is as competitive a tool. The ability of suppliers to deliver raw materials on time to the manufacturing, the time utilized processing the goods, and the amount of duration taken to avail the finished products to the desired consumers. In all aspects, the chain requires steadiness with the main agenda being timesaving (Zhu Q. et al. 2013). The entire management team strives towards proper timing, which is availing to the target at the appropriate time. With globalization, the supply chain has integrated management to the respective stakeholders playing critical roles in ensuring supply, delivery, and availability on time (Zhu Q. et al. 2013).

As stated earlier, the business organization has to work as a team through the integration of departments. To compete and remain relevant to the changing market, departments such as supply chain management has to pull their resources together in support of other departments. The SCM supports operations management efforts in several ways. First, improving operations of the distribution processes by digitizing information. Appreciation of the operational management team from the SCM boosts the relationship between the organizations and the SCM (Prajogo & Olhager, 2012). This helps the executive team to understand the channels and processes and plan for the future events. The planning assists in making the right decisions and proper timing of processes involved in the management.

            Second, enhancing customer satisfaction by generating quality outcomes. The SCM collaborates with the operational management to ensure consumer satisfaction in various ways. Maintaining quality of products consistently to the market motivates buyers to develop trust in a brand, making the entire production operational team proud (Prajogo & Olhager, 2012). The teams work hand in hand with each other to increase profits for the business. Since the SCM team is well conversant with the knowledge needed in reaching the consumer expectation, the experience is shared with the operational unit. Skills like proper handling of goods, adequate communication to clientele, taking of positive feedback to initiate change and improvements and finally honesty and transparency motives to each other to create an enabling environment worth working.

Last, increasing globalization and taking a competitive pressure. Since globalization has made the business world a small village, all stakeholders have to impress it. Applying of relevant technology through production and distribution of the goods and services produced. Moreover, taking in pressure from similar competitive brands or substitute brands is very crucial. Since the SCM is aware of modern trends in the supply and the entire industry, is in the position to encourage the operational team towards plans (Prajogo & Olhager, 2012). Policies that make the organization stay relevant in the business like technological advice, machinery purchase, type of skills to employ or deploy and future investments in warehousing and related fields.

 Global supply chain management practice is the (worldwide) transnational distribution of goods and services network created by companies of the same industry to avail specific goods to their respective consumers. Global SCM establishes a series of the system from point to point to ensure safety and timely movement of the products and services. Going global puts the business at the advantage of new technology, international partnerships, and markets, and business expansion to the international community (Roy 2017). The GSCM supports the operational efforts of digitalization by enriching to the new market. The marketing plans, however, are boosted with the international community that provides a wide range of consumers. The business can grow due to increased partnerships abroad, and more sources are projected into the business (Roy 2017).

Professional interactions between the Supply chain management with operations management provide various solutions to the organization. First, new markets are achieved through globalization. Second, customers’ satisfaction is prioritized due to SCM skills imparted to the OM. Third; the SCM creates an enabling environment for new technologies that fasten distribution of goods to the targeted consumers. Last, timing and competition are achieved through advanced communication and proper feedback.


Prajogo D. & Olhager J. (2012) Supply chain integration and performance: The effects of long-           term     relationships, information technology and sharing, and logistics integration

International Journal of Production Economics, 135 (1) (2012), pp. 514-522

Roy, E. (2017). What is global supply chain management? - Trade Ready. Trade Ready.             , from management/global-supply-chain-  management/

Q. Zhu, J. Sarkis, K.H. Lai (2013) Institutional-based antecedents and performance outcomes of    internal and external green supply chain management practices

Journal of Purchasing and Supply Management, 19 (2) (2013), pp. 106-117

October 30, 2023


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