Sucessful supply chain management and the creation of competitive Essay

Sucessful supply chain management and the creation of competitive advantages requires effective demand and supply chain manage - Essay Example In this case, upstream interconnection focuses on source of supply, while downstream interconnection deals with distribution of commodities to customers. Therefore, SMG focuses creation and optimization of value in processes and activities for services and products that are offered in order to satisfy customer demands. SMG may also be considered a interrelationship and management of inflow and outflow of commodities and relevant information through a network that interlinks producers, manufactures and consumers (Samaranayake, 2005, 48). However, there is a need for a change in SMG, which is facilitated by a shift from individual functions of management to integration of necessary activities in the process. Some of the processes managed through SCM include management of customer relation, suppliers’ relationship service, returns, demand, flow of manufacturing processes and order fulfilment. Moreover, there are functions and facilities, which are entailed in the supply, chain ac tivities such as conversion and transportation of commodities from a stage of raw materials to finished goods. Therefore, SCM can be conceptualized as a network through which suppliers and consumers are able to integrate demand and supply. Competitive Advantage In order to create a competitive advantage with through supply chain management, there are supply chain connections in the upstream and downstream flow of materials and information (Monczka, Trent & Handfield, 2005, 9). There are both physical and informational elements entailed in the process of SCM, which is perceived as creation of value chain network that consist of individual functional units. In addition, it entails upstream supplier network and downstream channels, whereby organization forms an integral part of the SCM. In this case, this calls for equitable performance in a way that facilitates achievement of organizational objectives. In other situation, supply chain management is applied as a way of gaining competit ive through maximization of value, whereby it leads to generation of disparities between finished products. In fact, these different is vital to the customer and for supply chain as well, whereby it offers a means of satisfying customer needs (Chopra & Meindl, 2007, 22). On the other hand, SCM offers a platform for a competition based on value of products and services offered by an organization and collaboration with suppliers and customers. This leads to acquisition of a substantial market share, which is derived from consumers through satisfaction (Martin & Grbac, 2003, 25). Therefore, SCM creates an opportunity of gaining a competitive advantage through collaboration and cooperation aimed at improving the efficiency and market effectiveness that is vital to the customers. Nevertheless, gaining a competitive advantage through SCM requires planning of operations, whereby it is vital for facilitating the process of distributing commodities in the market to the consumers (Gimenez & V entura, 2002, 4). Moreover, there other issues considered in the process of designing and monitoring the supply chain; in fact, these