Introduction to Supply Chain Management

Introduction to Supply Chain Management
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Introduction to Supply Chain Management
The supply chain is the most significant term of logistics. With the dawn of globalization, there has been complexity in managing the supply chain (Rizescu, 2017). Most firms depend on supply chain management as an essential process for the flow of goods, services, and information. It is the primary factor behind business success and customer satisfaction. The role of supply chains is to ensure that products reach consumers (Vidrova, 2020). It is worth noting that globalization has not only changed the flow of products and services, but it has also led to the transformation of business structure.
Globalization as the Key Factor in the Evolution
Before globalization, organizations limited their services to local and national levels implying that the firms had a management system operating at these levels (Vidrova, 2020). However, with globalization, companies have expanded their customer base and management to facilitate the flow of goods globally. In this regard, globalization has been the factor behind the significant changes in the company's material control system that distorted its leadership structure. Due to globalization, the purchasing agent must now report to the Chief Financial Officer (CFO).
The CFO reports to a more professional purchasing manager trained in higher levels of negotiation skills. This manager reports to the director of the materials, conversant in how all the supply chain elements fit together. The materials director then reports to a global sourcing manager, who later reports to a global supply director. This communication channel means that globalization has forced the firm's management to look at a global market as opposed to its country of origin. By looking at the bigger picture, the management can involve other global firms in the company's activities to ensure that they satisfy the needs of customers worldwide.
Additional Elements of a Material Control System
The globalization phenomenon has given the firm a new shape by opening a new perspective in the international relations arena. Due to this breakthrough, the company requires various added elements of a material control system. One of the elements is high-quality products. The competition in the global market will force the company to produce excellent products to survive (Rizescu, 2017). The availability of quality products will increase the customer base, customer satisfaction, and customer loyalty. Therefore, quality is the first component of a material control system the organization requires. Another element is the reduced cost. According to Rizescu (2017), firms involved in a global supply chain can reduce their costs to ensure a stable market position and economic viability of their operation. The last aspect of a material control system is the operational element. It focuses on the maintenance of material supplies to ensure that material is available for use in production.
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