Talking about the field of supply chain management, it includes management of the different processes that organize the flow of services and goods within a company or organization. It consists of processes that convert raw materials into final products. It involves planning, control, design, execution, and monitoring of supply chain activities to make net value, building a complex structure, leveraging logistics globally, measuring performance, and synchronizing supply with demand.
Benjamin Gordon an expert in the field of supply chain management suggested and explained some of the points to explain the constraints of supply chain management. He explained the three main elements of SCM that is materials, demand, and resource capacity. The objective of supply chain management is to increase the flow of cash by synchronizing businesses processes that are based on different constraints.
The role of the supply chain in manufacturing coordinates demand with a unit of business by using parts, materials, and resources such as workers and machines to amplify the flow from parts supply to the selling of product. The role of supply chains in manufacturing is to coordinate the flow of resources and materials through an exact process that ends up as a final product within the hands of the user. This will cover anything that is from the largest to the smallest. Within a manufacturing organization, the supply chain management holds a high impact on the baseline, impacting customer needs and satisfaction and also the overall costs of the organization.
According to Benjamin, the impact of globalization on the supply chain has made it more complex. It is common for American organizations to have manufacturing services in Mexico or Asia and customers in different parts of the world. This system has also made it very common for companies to contract out various aspects of SCM to specialized third-party companies across the world.
Globalization has also increased risk, some that compound one another. This means it is more difficult for manufacturers to increase the overall visibility and the operations of the supplier. Manufacturers have to manage the complexity of the increased supply chain as second and third-level suppliers become more regular. They also have to increase their access to the information, while enhancing the quality at a lower cost. This increased global complexity has the ability of manufacturers to manage and anticipate risk. Benjamin Gordon Cambridge Capital Grant always focuses on enhancing the different processes and methods in the field of SCM.
