Supply Chains Essay Example | Topics and Well Written Essays - 1500 words

Supply Chains - Essay Example Consumers are also inquiring about environmental strategies from the companies since they are aware of the global warming and the ecological matters. Companies will have to explain to the consumers how green their production processes are and how their waste materials are recycled. Supply Chains and networks Supply chains and networks plan is the act of finding and reducing services in the supply chain. In the plan, the mode of transportation, how to look for the market and the nature of the services are determined to provide the best service to the customer at the reduced cost possible. Two plants can produce a commodity and it can be supplied to three different chains before it gets to the customer. The plan offers the most convenient and efficient means to reduce such inconveniences. A good plan improves a company’s supply chain in the following areas Minimized costs Reduced account levels Low transport costs Good asset returns Good and reliable customer service A company e njoys competitive advantage when its goods and services are of better quality and prove to be acceptable by the consumer. A company’s competitive advantage can be determined by - Time- this is when a company can produce and process more goods quicker than the other processes. This advantage improves the profits and the product value. Cost- this is when a company spends less in the processing than the other. Cost advantage occurs where there is a better mechanized procedure and good mechanization which enhance competence. Quality Advantage- this is where a bigger company produces goods with less faults that the substandard ones. A company should ensure that all products of the same brand are of the same quality and result. The quality of the goods or commodities and their delivery is determined by the following factors:- Accessibility of resources When there are readily available raw materials, the cost of fetching for the materials is greatly reduced. Transport costs and the labour cost is greatly reduced. This also affects the quality of the goods supplied and how they are delivered to the consumer. Amount of purchases The amount of purchases a company produces greatly affects the quality and the distribution. A company delivers its products to the consumer depending on the necessity of the goods. Corporate responses Changes in climate have brought concern to business because it presents threats to companies (e.g. oil companies). In the 21st century, environmental dilapidation cost of materials and energy rise, in search of economic development have turned out to be clearer. Increased greenhouse emissions, destruction of the ozone layer and forests prove that there is a problem. Figures from the World Bank have shown that poverty has risen and many people live on fewer than 2 dollars each day (Wilsner 2011). This shows that issues of consumer options and control have been neglected. It is now the main challenge for humanity to find reasonable and susta inable behaviours to manufacture survive and consume. In 1992 a corporate, Rio Earth Summit assumed search of sustainability as its main aim. The challenge is to turn the goals into reality in the wake of hostile atmosphere and the global economy (Branch 2008). Social and ecological issues have been key hindrance to companies marketing their goods. The key issues in a supply chain management include- The planned