Advantages of supply chain management Essay Example for Free

Advantages of add up drawing string charge EssayOne is cost advantage. Companies that occupy implemented supply bowed stringed instrument management have a 45% supply strand cost advantage over their competitors. 1 Price of raw materials and remove product are optimized due to collaboration between two parties. The sharing of vital information in the early stage of development, and the effective communication of methods and requirements suspends parties within the supply chain to effectively benefit separately other in terms of cost.Another is faster time to market. Companies met their promised delivery dates 17% faster than their competition. 2 with early information and forecast, suppliers fuel also efficiently design their production and implementation process by collaboration. This allows supplier to reduce the lead time to produce their products within the supply chain.Disadvantages of supply chain management over traditional competitive procurement processes. Fi rst is the difficulty of maintaining supply chain birth. leave chain relationships are probably the most fragile and the most susceptible to breaking down. 3 This is because a poor relationship at any part of the supply chain can cause major problems to the entire supply chain. In todays global market, the customers have the power over the suppliers. Everyone else in the supply chain must quickly satisfy the demands or else face the possibility of loosing them.Another disadvantage is the need to assign vital information for collaboration purposes which leaves a company vulnerable to illegal copying of ideas or methods. Although these can be safeguarded by proper agreement between parties, but the forces of market competition may hold violations of agreement intentionally or unintentionally.If supply chain management is actually a superior dash of managing procurement and production, how (if at all) does that modify any of the economic big ideas we examined in Module 1? Supply ambit Management plays a major role in the concept of supply and demand. With parties closely cogitate through collaboration, the identification of demand which is needed by the suppliers to support the collaborative company is easy, allowing suppliers to maximize net given the level of demand. On the side of the collaborative company, the control of supply of raw materials is easy, which again would allow them to optimize profit.ReferencesFerguson, B. (2000). Implementing Supply Chain Management. Retrieved December 3, 2006 from http//www.apsreview.com/archive/spring2004/images/APICS.pdf1 See Implementing Supply Chain Management at http//www.apsreview.com/archive/spring2004/images/APICS.pdf2 See Implementing Supply Chain Management at http//www.apsreview.com/archive/spring2004/images/APICS.pdf3 See Implementing Supply Chain Management at http//www.apsreview.com/archive/spring2004/images/APICS.pdf