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Supply Chain Management Essay

Introduction
Majors in supply chain management focuses on processes of excellence for the organization. Supply chain management focuses of the flow of information, services and goods that target at delivering maximum value to the organization’s customers. Supply management has the responsibility of supplying services and goods that the organization deals with to the customers. They also manage the transformation and conversion processes that target at converting input to output. Supply chain management functions within the scope of organizing, planning and controlling the flow of bought materials within the organization. The Majors gives close attention to the analysis and selection of vendors, price determination and value analysis. Supply chain Majors also have the responsibility of disposing surplus and scrap materials. It places emphasis on the efficient application and usage of transportation by the management of business within the framework of logistics. Supply chain manages resources, procurement, fabrication, production, storage and production. It consists of interconnected components, which are required for the transformation of ideas to delivered services and products.

Through execution, Exel operated most part of the supply chain. These traditional activities lowered the costs of storing and moving products and improving the speed of delivery for HM. However, this represents a minute portion of the capabilities of the firm. Using the execution strategy, supply chain did not manage costs and opportunities available to customers. This included opportunities in the matching of supplies and demands. This is where the firm could manage the highest payoff.

The planning function of supply chain has the potentials of enabling the firm attain its allocation and purchasing functions. Planning also ensures that the firm has better execution capabilities. Planning eliminates instances of the “just in case” behaviors that occur in ordering extra inventory.

Planning has the potentials of ensuring that the firm’s shipments reach the customers on time. Planning confers deeper knowledge of supply chain, which would result to enormous savings. For instance, the lack of knowledge resulting from failures in execution would strain the firm in realizing the advantages of cost savings arising from consolidated trucks.

Planning eliminates risks because of the expansion of the relationship between customers and the firm. Planning enables the exchange of greater stakes in the activities of the firm and its performance. Technology firms have approached Exel for a portion of its financial planning in order to increase their share of savings. Planning increases the confidence of the firm, which enables it exceed expectations.

A clear understanding of the strategy will enable the firm move swiftly with its planning strategy. One of the executives at Exel noted that he needed to present a case for moving towards planning strategies for its supply chain. The ability of the execution team to execute the plans developed by the firm plays an enormous role in ensuring that the firm continuously develops creative planning strategies. Execution ensures the firm can lower the cost of storage and transportation and deliver products to customers effectively. The firm should become aware of the potentials of adding operations to its expertise, and to the customer is a planning function. The ability of ensuring smooth planning in allocation and purchasing requires the execution team performs effectively and understands its role. Planning and execution should be carried out jointly to ensure that nothing goes wrong in the supply chain.

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Nov 1, 2012

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