Informative Essay Sample on Supply Chain Management

Posted on February 2, 2010

SCM (Supply Chain Management) sounds like surefire saving when it comes to procurement of supplies. It offers more than a better way of meeting customer demands and managing low level of inventory or even having no inventory at all. No wonder why companies invest a lot of millions just for this software. However, automatic execution of sales without having the need for warehouse, stocks and paper invoice could be at hand, if and only if, you’re able to withstand the obstacle of getting SCM started and working.

First, you have to show to your business partners (suppliers) that they would also benefit from the whole process. The thing is, SCM requires effort not only within your business but from each part of the chain. So, in order to establish a strong relationship with them, they should see the additional gain they would have in exchange for the additional burden (i.e. more responsibility for your inventory) they would take.

Then, as the article mentioned, there is always the ‘internal problems’. The business should expect radical changes to the company’s traditional operations along with the grand promises SCM has. Thus, it must know how to motivate its people to work with the new technology. Aside from that, there is the danger of ‘first impression last’. The software might bring some problems on its first few months of use but then this should be anticipated considering that the software must adjust to the company’s historical set-up.

So, with all these hassles and complexities, why would a company adapt this software when it can cling to the traditional way? The point is, SCM is becoming a necessity for a competitive business. Only, the company should be careful in handling the system since its failure might reverse all the expected goals to be achieved.

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