Supply Chain Management

Cecil Bozarth and Robert Handfield write a book titled Operations and Supply Chain Management. Its 13 chapters offer insight into the technicalities and benefits of particular aspects of the supply chain which can be essential for both the upcoming and experienced supply chain managers. There are specific chapters that are interesting for the author of the essay as they are pertinent to their field of study and profession. Chapter 7 describes the criticality of supply management to an organization both on local and global levels, chapter 8 of the book addresses the importance of warehousing in consolidating space and minimizing the cost of the inventory-related operations of the organization on the other hand, chapter 10 addresses the various approaches to sales and operations Planning (S & OP). This paper is about how I am able to apply the principles from this book’s chapters in my professional experience.

Chapter 7

As an entrepreneur, the supply management is an integral aspect of the operations of the business I intend to operate and expand. The authors informed that the business does not only compete with local but also global businesses with similar objectives. Therefore, differentiation of the shoe business is essential for it to meet the projected objectives. The steps highlighted by the authors regarding the development of sourcing strategies are relevant to my business. The first step is the assessment of the opportunities, it is synonymous to how I asses the market of the shores before ordering their supply. The second step is the internal and external profiling. I carry out an analysis of my capacity to supply the shoes to the locations where the market exists before ordering. The sourcing strategy in my context is the approach I will employ in coming up with the transport mode to enable me to reach my clients in the shortest time possible. Supplier selection in my business is the analysis of the quality of the shoes supplied by a particular shop to realize the one whose products are mostly sold. The negotiation of the payment of the suppliers is also essential in my current and future business because supplier satisfaction will guarantee the receipt of high-quality shoes. The chapter’s input is essential in the business I have presently and the one I plan to set up in the future.

It addresses the importance of supply management. The chapter describes it as the set of processes that the organization effectuates in the analysis of opportunity sourcing to ensure the development of strategies to choose suppliers to avail goods and services to an organization’s clientele which is very important for me especially as an entrepreneur. Supply management enables me to display my global sourcing, being the facilitation of the competition between the organization and its local and global competitors. The second benefit of supply management that I can have is the financial impact and the overall performance of the organization that utilizes it. Observed is close to 53% of the value of the shipment emanating from the materials availed by the raw material suppliers. Therefore, it reinstates the importance of supply management on the overall objective of any business, as well as having me on the spotlight. There are six steps followed when developing the strategic sourcing process. They are an assessment of opportunities, and profiling carried out both within and without the organization to enable the development of strategies, analyzing suppliers and choosing a mechanism, to select them, conducting supplier selection and negotiating the implementation agreement. The six steps end up being my guide to the sourcing process in having the best results. It also highlights the procure-to-pay cycle. The cycle is the set of activities needed to notice a need, allocate a supplier, specify the scope and submit the relevant payment to the supplier, having my competence to both the organization and the clients clearly defined. The conclusion of the chapter entails the trends in supply management. The chapter documents environmental sustainability and the supply chain disruptions as the key trends in the sector. The chapter is practical in its approach to sustainability issues related to the subject sector.

Chapter 8

Through this chapter, I have learned the importance of logistics to the operations of the organization through the individual with the mastery in logistics. The onset of the chapter is the deciphering of the term logistics as the segment of the supply chain management which governs the forwarding and the return of goods and service in addition to pertinent information from the point of order to the point of consumption. By understanding this chapter, it has helped me in having a clear mastery in logistics without a doubt helps in addressing the criticality of logistics in an organization. The criticality, based on the cost-effectiveness informs me as a professional of any risks that could be averted therein making me competent to predict and avert risks. Furthermore, it can facilitate my effective delivery of service on data because the flow of information is critical to the supply chain management.

Moreover, logistics is important in the contemplation of the decision on the choice of the transport mechanism to be utilized by the organization that can have me be on demand in having an experience in the field. The information supplied through logistics avails critical details such as the point of delivery and the distance which enables the management of the organization to decide on the most suitable transport medium and predict the delivery time.  The chapter has also given me the knowledge me that any companies utilize multimodal solution to their transport issues and notes that only a few firms depend on one transport mode to meet their transportation needs. The chapter predominantly talks of warehousing and its benefits. There would be no other qualified individual in such field of warehousing than an individual with such experience in the field. I can thus predict that warehousing reduces transport costs.

Furthermore, warehousing facilitates the consolidation of space as a result of the pulling together of several shipments in one location, being a major factor in decision making in the firms and organizations. Warehousing also enables breaking bulk if it, having it installed with relevant mechanization to enable the division of the quantity of the goods. Therefore, I have gained experience not only in the office but also the field, exposing me to the vast management field.

As an entrepreneur aiming to rise to the highest echelons of business management, I have started an online shoe shopping business which intends to reach out to customers who are busy but interested in the products that the venture offers. Reading the book by Cecil Bozarth and Robert Handfield informed that logistics are central to the success of an organization. My mentor observes that logistical order is equivalent to the prosperity of a business on a long-term basis. Another experience that I have noted from this chapter is that logistics entail the planning of the supply of the products and the exchange of the information between the customers the business and the other stakeholder in the industry. The flow of information and the informed delivery of the goods and services ordered satisfy the clients and retain their future interactions.

Regarding warehousing, I plan to construct one in future to be more competent and relevant after insight on the field of logistics. I am currently studying the market to realize the geographical location from which I anticipate and get many orders. As a result, I will set up a warehouse in a location that facilitates the continuity of the business through constant orders. Reading the chapter also helped me to learn the importance of incorporating other services within the warehouse setting. For instance, since it consolidates space, there is a possibility of installing value addition capacities ta the warehouse. For example, as a shoe supplier, I will need to avail repair services to satisfy the needs of the clients based on the logistics-oriented information received.

Chapter 10

The chapter’s focus on the managerial decisions is inspiring for prospective and experienced businesspersons. The sales and operations planning is an integral part of business management and plays a critical role in the achievement of its objectives. Through this chapter, therefore, I can know how business management and objectives of a business are related. I am an entrepreneur venturing in online and soon-to-be offline shoe supply business. As a sole proprietor, the criticality of the decisions I make is apparent since there are no expected alterations by colleagues. In the future, I plan to invest significantly in the business to capitalize on the expanding market. Therefore, at some pity, I will have to hire managers to handle the operations of the business in my absence. The chapter talks of the top-down and bottom-up planning approach. I believe I will utilize the bottom up panning. I realize that as a sole proprietor, I handle all the operations of the growing venture, knowing all the specifics of the business. Similarly, the line managers of the future organization will be aware of the specific issues that affect the business.

 

In this chapter I have gained details about the importance of managerial decisions in effectuating the supply chain management. The chapter starts by defining the Sales and Operations Planning (S & OP) as the development of plans to integrate marketing and management of the supply of the product to its relevant market.  In turn, bringing together all plans into an integrated approach to organizational business. There are two levels of planning within the organization. The first one is the strategic planning which occurs at the top level of the management of the organization and addresses long-term scenarios. Tactical planning, on the other hand, refers to the horizontal management decisions which cover short-term expectations but also have long-term implications. Competency in such a field, therefore, assures of constant selection in driving organizations to better performances. However, there exists a third level of planning called the detailed planning and control whose ability to adjust is limited has lower risks and encompasses the operations of the organization within a day or week. Having all the approaches, therefore, gives me a selection of choices to select from, to have the best option selected without room for mistakes. The chapter addresses the two approaches to S & OP which are top-down and bottom-up. In top-down, the executive management allocates the resources to be utilities in the realization of specified objectives. Afterward, they communicate the decision to the lower level managers. The bottom-up planning, on the other hand, accords the lower-level managers the capacity to asses the resource requirement for attaining the specified objective. They later communicate their decisions to the top management to ascent the allocations recommended. It also avails details of the three levels of production planning. The first level is the level production plan which encompasses the projections of the sales and operations planners before the commencement of the production exercise. The chase production matches the sales forecast and the available production capacity while mixed production plan entails the concurrent consideration of the plans before the start of the production process and also considers the sales projection to come up with n assorted plan. It is therefore evident that knowledge in managerial decisions puts me in the front line, having the first-hand managerial skills up my sleeves. Therefore, it helps me have rational decisions made, just as well performing managers should.

Therefore, I acknowledge the fact that they will be better placed to assess the resource need of the business and recommend sufficient resource allocation which will facilitate effective and efficient accomplishment of the specified tasks or new investments. Furthermore, I believe the mixed planning level is more effective than the other three approaches because it analyzes the market and the production capacity of the venture.

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