What Is Your Definition of Supply Chain Management?

Supply chain management is an important concept in the sphere of merchandizing that aims at improving the integration between manufactures, suppliers, stores, etc. It is necessary to create a powerful system that takes control over a number of activities with products. A properly organized supply chain promotes the correct distribution of the goods; therefore, quantity of the products, delivery time and location are the issues that have to be taken into consideration in order to minimize all possible costs (Simchi-Levi & Kaminsky, 2008). The development of modern world and technologies requires the attention to each detail in merchandizing, and supply chain management cannot be neglected.

List and Describe the Components of Supply Chain Management

Supply chain management is a complicated process that considers a number of steps (Leeman, 2010), and the components of supply chain management have to be clearly defined. The development chain should be mentioned. It involves the development of the design, identification of certain capabilities, sourcing decisions, and production planning. Global optimization helps to define the most appropriate system that has to be implied. At the end, it is necessary to manage the cases of uncertainty and risks. If all the steps are taken logically and the order is kept, supply chain management will lead to success of any operation.

What Are Issues or Challenges Facing Today’s Supply Chain?

Uncertain environments, unpredictable risks, weather conditions like Hurricane Katrina (Simchi-Levi & Kaminsky, 2008), consumers’ demands, etc. may create a lot of challenges in today’s supply chain management. Merchandizing companies should hire true professionals, who may organize the work properly and be ready to solve the problems, organize successful customer services, control the costs considering technological upgrades and the rise of commodity prices, develop the relations between different suppliers, and match demand and supply as it is considered to be one of the major challenges in the chain.

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