Supply Chain Management

Log 490 Supply Chain Management
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Reasons as to why Supply Chain Management Issues are usually ignored by Senior Management
The process of supply chain management is an important issue for any organization. The supply chain management in the business environment is evolving at a continuous rate and this is creating some issues for an organization’s senior management. Increased area of business is resulting to increased supply chain management issues. Supply chain management is a managerial term that the senior management of an organization should be accountable for. The ‘file and forget’ approach is used by most managers for the management of supply chain because they have less understanding concerning the significance of supply chain in lowering the organization’s overall cost.
Most senior managers main focus remains on the other assets of the organization that are more competitive instead of focusing on the supply chain, which can as well be a major competitive asset for an organization in increasing its competitive position and its effectiveness. Another reason for managers ignoring the supply chain issue is the less awareness regarding logistic (Robert, 2008). Logistic awareness can assist the senior managers forecast their operations while considering all the significant assets in the business which includes the management of supply chain. Increasing profitability is as well a reason that senior managers ignore the supply chain (Dutton, 2009). There is less concern in paying attention to addressing the issues of supply chain in those companies that are more profitable since it is the profit margin that gives the senior management the direction on whether to focus their attention to the supply chain issues or not. Additionally, the transportation cost is not considered by many senior managers as a key source of cost that can as well has impacts on their aim to address the issues of supply chain (Dutton, 2009).
Strategy to employ to sell Senior Management on the Benefits of Paying More Attention on the Management of Supply Chain
Cooperation between the management of supply chain and the senior management and other organization’s department can assist a business to achieve the overall capability of the supply chain management. Since the supply chain involves itself with many departments in the organization, it is important that there be continuous support and information flow. This requires implementation of a strategy that includes the cooperation of the senior management so that complete potential of the supply chain can be realized and utilized.
In this strategy, the foremost phase is that the supply chain management should be accorded with several goals to be accomplished by the senior management. As Robert...