Value Chain Benefits Analysis

Essay by deezel71University, Bachelor'sA+, September 2008

download word file, 4 pages 5.0

Supply chain management consists of many processes in which a product goes from its point of origin to the consumer. Every business from a local company operated by sole proprietor to an internationally-run organization must employ some form of supply chain management. Steps in the supply chain management process include planning, implementing, and controlling the flow of goods or services both efficiently and effectively. The entire process must be well established to allow for the quickest and most cost-efficient manner for the final product to reach the consumer. In addition, the process includes not only getting the products or services to the consumer but also getting those products or services the customer desires. A company must be able to get the correct product into the consumer's possession on a prompt and timely basis. Otherwise, it risks losing that consumer to another company who can deliver the same product more efficiently.

This paper will examine the role of supply chain management and the value provided to stakeholders such as customers, employees, and stockholders.

Customers are one of the primary stakeholders for an organization. Whether an organization offers a physical product or provides a specific service, supply chain management is a key factor in bringing value to the customer. Organizations need to look beyond their "four walls" and understand the supply chain process and the activities that are in place to deliver the product to the customer (SCRC, 2008). The fundamental goal in the process is to bring value to the customer in every step of the process. This can be accomplished by implementing goals and objectives that accelerate the process while achieving high levels of quality and accuracy thus ensuring the customer finds value in and is satisfied with the final product. In the management of the value chain every step...