Literature Review: Supply Chain Management

Literature Review: Supply Chain Management
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Literature Review: Supply Chain Management
Supply Chain Management
Introduction
The profession of supply chain management (SCM) has continued evolving and changing in order to fit the needs of the expanding international supply chain. SCM is essentially based upon the notion that virtually all products that come to the marketplace stem from the efforts of different organizations or companies referred to as the supply chain. Activities in the supply chain encompass everything from development of the product, sourcing, manufacturing, logistics, in addition to the information systems that are required for coordinating these various activities (Corominas, 2013). This literature review exhaustively covers the concept of supply chain. The supply chain framework is analyzed along with the benefits of effective supply chain management, factors that influence SCM, supply chain risk management framework, sustainability, corporate social responsibility, as well as in-sourcing and outsourcing/ buy-or-make decisions.
What is supply chain management (SCM)?
SCM is essentially understood as the range of processes which connect suppliers and customers. It is the oversight of finances, information and materials as they move in a process from the supplier to the producer to the wholesaler to the retailer and lastly to the end-user. SCM entails coordinating as well as integrating these flows among and within firms (Wolf, 2014). For any SCM system, the main goal is about reducing inventory and to ensure that products are available whenever required.
According to Hamta et al. (2015), SCM refers to the active management of supply chain activities in order to make the most of customer value and attain sustainable competitive advantage. SCM represents a conscious effort by companies in the supply chain to create and operate supply chains in the most effectual ways possible. It is notable that activities in the supply chain include product development, sourcing, logistics, production, in addition to the information systems required to coordinate these activities (Wolf, 2014).
Organizational design
Many business organizations are searching for new ways to compete via a competitive supply chain strategy. Successful companies are typified by the following organizational design: (i) There is a senior executive who is responsible for supply chain management and this individual reports to the company’s CEO; (ii) corporate committee which is involved actively in giving direction and guiding the execution of supply chain management strategies (Jain, 2012). (iii) Coordinating strategic initiatives is achieved centrally with active participation of the company’s business units. (iv) Common services are centralized to ensure improved efficiency in every business unit. (v) Ownership for operational facets of supply chain management is with the operational business units (Jain, 2012).
The supply chain management framework
The framework for SCM is as follows:



Efficiency is promoted through the usage of supply chain management best practices. This framework ensures that there is an effective, seamless and eff...