MGT 300: Supply Management
The management of logistics comprises of the flow of goods and materials via a business entity. Supply chain managers or logistics employees monitor and ensure various departments within the company receive supplies and materials. The manager oversees the stocking branches and warehousing and shipping activities. Organizations depend on the effectiveness of the company’s supply chain to achieve client needs and deliver completed products within budget and on time. Therefore, this essay seeks to evaluate the overall qualifications of logistic personnel and the general activities underlying the supply chain management.
Logistics is a critical aspect of the supply chain management, and it comprises of the organizing, management of inventory and movement of the products and services from the original location to the point of consumption. Mainly, logistics integrates strategic pattern of transportation and traffic, shipping and receiving, export and import operations, purchasing, inventory control, warehousing, customer service, and production planning. Organizations view logistics as the vital blueprint of the supply chain management (Martinez, 2016). Logistics is employed to monitor, coordinate, and manage resources required to distribute goods in timely, smooth, reliable manner, and cost-effective.
Job Titles within Supply Chain
The three diversified job positions in the supply chain field are master schedule, purchasing manager, and materials manager. Notably, the above title promotes success within an organization since they play a critical role in the overall process of supply chain within a corporation (Apics, 2014). The material manager identifies suitable commodity items which are vital for the general customers and organizational success. Master Schedule and purchasing manager are responsible for the preparation of the schedule for acquiring goods and services and developing a marketing plan for the company products marketing.
Purchasing manager watches the distribution, storage, and movement of the inventory within a company. Additionally, they control the circulation of incoming fabric and outgoing finished goods to ensure consumers receive commodities on time. Moreover, they oversee inventory control, warehouse, transportation, planning workers, customer service, and material handling. They also hire, educate, and examine the suitability of the workers. Master Schedule and purchasing manager plan the working schedules and ensure distribution and warehousing workers conform to the safety rule (Quarshie, Salmi & Leuschner, 2016). Additionally, they prepare monthly reports on the flow of the work for the senior management and negotiate for supplier and shipping costs and work to enhance the effectiveness of the corporation’s supply chain.
Quality Assurance Department
When clients feel they can regularly get quality products from the company, they tend to offer repeat business to the corporation. Frequent quality requires hard work and attention to the customer descriptions and evaluation if the products meet the standards set by an organization (Quarshie, Salmi & Leuschner, 2016). Therefore, quality control is a continuous process which revolves around the purchase of materials, manufacturing, and distribution of the finished products. As such, Quality Assurance Department (QAD) is the essential branch which enhances the activities of the supply chain management.
The corporation gains from the promoted alignment of the supply chain management with an internal agent because it directly affects the quality of commodities and overall profitability of the corporation. Quality Assurance Department (QAD) manages the production chain which is a fundamental aspect of maintaining competitiveness in the market and reduces the expenses related to workers (Quarshie, Salmi & Leuschner, 2016). Notably, the absence of QAD in an organization results in wastages and customer dissatisfaction due to lack of quality control (Quarshie, Salmi & Leuschner, 2016). More importantly, Quality Assurance department in perspective of the inventory system, it secures the company notoriety and, therefore, useful control of the provider inputs ensures less risk of returns of investment and saves the company from disappointment.
Role of Supply Chain Management in Achieving Sustainability
The primary function of the supply chain management in realizing sustainability goals in the company is managing operational costs and keeping brand integrity. Notably, supply chain management plays a critical role in ensuring the company goals is achieved (Harms, Hansen & Schaltegger, 2013). For example, the objectives of the sustainable supply chain are to develop, secure, and make long-term monetary incentive, social, and ecological incentives for the stakeholders who are engaged with the delivery of products and administration of the marketing strategies (Harms, Hansen & Schaltegger, 2013). Companies can protect the long-term goal of their business and obtain the operational licenses through a sustainable supply chain.
Factors Influencing Total Cost Ownership (TCO)
“Total cost of ownership (TCO) requires a purchaser to identify and measure costs beyond the standard unit price, transportation, and tools when evaluating purchase proposals or supplier performance. Formally, the total cost of ownership is defined as the present value of all costs associated with a product, service, or capital equipment that are incurred over its expected life” (Monczka, 678). Total cost ownership (TCO) refers to an evaluation which positions one value on the finished lifecycle of the capital acquisition. Therefore, the amount comprises each phase of operation, procurement, and softer expenses of innovation control which move down from purchase such as training and documentation (Martinez Neri, 2016). Moreover, TCO lists the variation between long-term cost and purchase value and this examination emerged into the spotlight from the mid-nineties because of the expenses in reinforcing software and hardware IT buying. Later, data managers realized that strengthening the software and equipment could the company between 5 – 8 times the original purchase prices.
Identified five factors which could be considered when ascertaining the total cost of ownership of the capital types of equipment are transition items cost; initial training items, customization items, software items, and hardware items. Admittedly, taking either negative or positive values of the above questions to complete the reckoning, it influences the computation of the TCO worksheet (Martinez Neri, 2016). However, the items consider the adverse and decisive actions to be different since a person can denote definite location and another negative.
Common Features with Professional Negotiators
First, I will describe the features which are required and considered by the professional negotiators. Notably, social listing and communication skills, confidence, creativity, and patience are the remarkable features. Complex supply chain management is an avenue where creativity is envisaged and is the situation which cannot be present is overall hierarchical sections (Fahimnia, Sarkis & Davarzani, 2015). Additionally, patience is a core aspect while working globally. Considerably, Americans have high self-esteem in the management of issues. Also, patience is a fundamental necessity in an international environment for development.
Working in several community teams will improve global opportunities. Notably, creativity can typically influence the supply chain control. Supply chain and progress may present in two innovate exercises, and yet they genuinely release unique collaboration (Fahimnia, Sarkis & Davarzani, 2015). The lack of the confidentiality additionally makes nearly impossible to be receptive to customers and to address the adjustments in the economic situations and to the knowledgeable in providing the consumers with benefits (Fahimnia, Sarkis & Davarzani, 2015). Lead times announced to the product udders tend to long because they are listed in the insurance and required when the deals partners do not affirm in the supply chain.
Method of Using Data to New Supplier
Data reliability is the method of utilizing information to select the new supplier. This technique is a suitable, consistent, and fair way of managing the business. Reliability uses data to identify consistency of evaluation of the research at hand (Fahimnia, Sarkis & Davarzani, 2015). However, assessment equipment, for example, a survey or review, releases comparable results under assured linked conditions, it minimizes the shot that the obtained scores are since arbitrarily presenting factors, common to regularity or latest estimations and occasions errors (Fahimnia, Sarkis & Davarzani, 2015). Data of legitimacy and regular quality no controls the expert in judging and planning the individual’s work, but also enhances the research of the client via the potential to examine the client’s writing and selecting elective project medications and outlines.
Special Characteristic while seeking International Resources
Logistics potential, value-added services, and trade regulations are three fundamental characteristics a trader may consider while finding global sources of fabrics. While worker taxation, identification of accounting model and integrating with the US reporting needs are critical factors for running a business in America (Fahimnia, Sarkis & Davarzani, 2015). The choice of United States element planning decides on how the company would be taxed and is always rare choice while establishing the US substance. At the terminus when the US-based Corporation has agents, it would be required to cater for the expenses associated with assessment and achieve specific manager roles (Fahimnia, Sarkis & Davarzani, 2015). American based entity must make accurate payments, for instance, rents, intrigues, and sovereignties. Inconsequential external collections would be demanded to withhold American salary evaluation and file an annual report of the exchanges.
Applications of Three Types of Fixed Price Contracts
The use of three categories of fixed price agreements involves monitoring contract cost which is in charge of determining contract price and enables a separate project to handle the cost of using outsourced organizations since business, and nonpermanent employees may decide to do the divisive estimation of understanding before grading. Dispensing with organizational expenses, the costs of meeting a settled price covenant commonly rest with the private entity (Harms, Hansen & Schaltegger, 2013). The implications of purchaser and supplier for every method are explained. Every collection might assume all costs and expenses causes by association or under with the agreement (Harms, Hansen & Schaltegger, 2013). Nothing enlisted in the union should be perceived as emphasis by either assembling into accord, subcontractor another hand various business combination with other parties.
In summary, supply chain comprises of the supplier services, components, and raw materials that an organization requires to distribute and manufacture its commodities to final or intermediate clients. The supply chain may comprise of the various company models which reflect business relationship and the degree of collaboration between the string and corporation. The framework varies from formal relations where the company can make occasional acquisitions from the diverse team of suppliers, suppliers, integrated supply chain and joint ventures where there is the need for the degree of dependency and collaboration. Finally, control of the logistics comprises of the flow of goods and materials via a business entity. The company should hire managers who are qualified to monitor and ensure various departments within the company receive supplies and materials.
Apics. (2014). Operations and supply chain management career paths and patterns. Retrieved from apics: http://www.apics.org/docs/default-source/careers-white-papers-webianrs/operations-and-supply-chain-management-career-paths-and-patterns.pdf?sfvrsn=28
Fahimnia, B., Sarkis, J., & Davarzani, H. (2015). Green supply chain management: A review and bibliometric analysis. International Journal of Production Economics, 162, 101-114.
Harms, D., Hansen, E. G., & Schaltegger, S. (2013). Strategies in sustainable supply chain management: an empirical investigation of large German companies. Corporate Social Responsibility and Environmental Management, 20(4), 205-218.
Monczka, Handfield, Giunipero, Patt. ACP PURCHASE & SUPPLY CHAIN MANAGEMENT, 6th Edition. Cengage Learning, 2013-02-07. VitalBook file.
Martinez Neri, I. F. (2016). Supply chain integration opportunities for the offshore wind industry: A literature review. International Journal of Energy Sector Management, 10(2), 191-220.
Quarshie, A. M., Salmi, A., & Leuschner, R. (2016). Sustainability and corporate social responsibility in supply chains: The state of research in supply chain management and business ethics journals. Journal of Purchasing and Supply Management, 22(2), 82-97.