Integrated supply chain management Research Paper

Integrated supply chain management - Research Paper Example Due to the liberalization and the globalization of international trade, the sourcing of production factors and the obtaining of consumers across boundaries has made it possible to have international supply chains (Mentzer 2004). The effectiveness of these barriers has made it possible to have a serious but favorable competition in the international market arena that can be attributed to the abolition of the trade barriers that previously made it impossible for trade to be easily carried out. This distribution of the competitiveness in the physical exchange with the rest of the world is important for economic growth and development of both nations and corporate that are actively involved in the supply chain management. A supply chain is loosely defined as a structured process of manufacturing whereby raw materials are changed into finished products before being delivered to customers. What is in agreement from the meaning of a supply chain is that it starts with raw materials and comb ines a number of value adding activities that end with the transfer of the finished products to the customer at the end of the chain. Due to the fact that the satisfaction of the needs and wants of the customer are crucial in the success of every supply chain and its management, effective management of the process that links each and every chains becomes vital. Additionally, the uncertainties in the market make the supply chains not to be flexible in trade situations that require that there is effective management of the supply chain. Supply Chain Management Supply chain management is aimed at examining and managing the supply chain networks in order to save costs and provides better services for the customers as well as improving the corporate competitiveness in the satisfaction of the needs of the customer (Langley et al 2008). Therefore, supply chain can be defined as a chain of facilities and distribution alternatives that carries out the functions of obtaining goods, changing t he goods into finished products and the distributing them to the market. Supply chain management entails organizing a network of numerous processes and activities that create value in the form of goods and services that are passed on from the original raw form into end products that are passed on to the end customer. It also involves the integration of key processes in any business from the end user through the suppliers that provide the goods and services and information that may be used in value addition to the product as well as the designing and management of all the activities that are relevant in the coming up with an end product (Handfield and Nichols 2002). In summary, supply chain management is aimed at increasing the value contribution to the end customer while concurrently reducing the costs of the product through offering it at the right place at the right time. According to Simchi-Levi, Kaminsky and Simchi-Levi (2003), supply chain management refers to the set of method s used for proper and efficient coordination of suppliers, producers, depots, and stores to enable the production and distribution of the commodities at the correct quantities, at the right locations and the right time. The main aim of this is to decrease costs while filling service requirements of both the supplier and the end customer, and this means that the supply chain must be organized to be both fast and trust worthy to the customers as well as cost effective to meet the requirements of the customers. From