Supply chain

With increasing competition around the globe, supply chain management is both a challenge and an opportunity for companies. Introduction Supply chain management (SCM) is defined as the management of the flow of information and materials in a supply chain to facilitate the highest level of satisfaction of clients at the least costs (Li et al., 2006). This requires the commitment of partners in the chain who work together to take orders, coordinate, and fulfill orders and therefore creates a linked business which spreads to other localities far from producers locations. Supply chains comprise all those activities which are required to make, design, deliver and utilize a good or service. The chain provides any enterprise with whatever it needs to survive and grow thus every business fit and plays a role in each of the supply chains. Supply chain management also combines the main business activities such as transportation, processing, storage and sale to consumers. The practice of supply chain management is significant if a business wants to stay ahead of the competition and many companies begin to realize the opportunity (Li et al., 2006). Moreover, SCM is part of purchasing and logistics activities and has become popular since 1980. It comprises of elements for example operations, purchasing, distribution, and production. The practice of supply chain management changes with political environment, market forces, advancement in technology and level of competition. Challenges of SCM Logistics Logistics is an important factor in trade in the current economies thus promotes a rise in welfare and prosperity of an organization (Christopher, 2016). Economic resources are limited and have uneven distribution terms of geographical location and type. A chain in logistic enables food, materials, and products to be distributed from producers to end user or customers. The present logistics are usually unstable as a result of emission of toxic gases into the atmosphere, noise problem, congestion on roads and huge prices incurred in transportation. The growing global population necessitates the need in the growth of production which also interferes with ecology. This implies the need for quality human resources through training and education. The level of production can also be improved via the use of better techniques, access to the needed information, automation and better decision making. The applied techniques help to decrease the vulnerability in systems in border crossing against crime and illegal activities for example organized crimes in immigration, i.e., human trafficking, theft and violations of customs laws. Advancement in technology plays a role in logistics in developing smarter business whose basis is joint responsibilities and equal distribution of revenue instead of individual maximization of profits (Hazen & Byrd, 2012). Modern supply chains are characterized by many stakeholders who are involved in shaping their manifestation. These include shipment managers and logistics service providers, state agencies, the finance sector, and end users. The supply system needs proper control and planning techniques for example architecture in distribution, solutions in cloud computations, cognitive computing, and decision making which is agent-based. Modern technology is helpful in addressing some of the logistic challenges such as the development of new and lightweight materials, de-materialization and miniaturization of goods. This helps in minimizing costs and ecological or environmental damage. In addition, technological advancement such as micro-machining and as 3D printing assists in mass customization and affects stimulating local production. Local production reduces stocks anticipation because It allows for the production of products where and when required. A system in multi-stakeholder which aims at fostering cooperation between companies needs tools which brings theoretical concepts. Nash equilibrium theory brings forth the idea of players giving up their solutions to achieve stability. This is difficult to achieve for private companies who concentrate their profits hence a big obstacle in arriving at sustainable logistics. Sustainable logistics requires smart solutions and a positive mind change and on top of all the best value in collaboration. A positive mindset is useful in the implementation of ideas which necessitate reuse products either through electronic means or by a direct dismantling of disposed of components especially in a closed loop supply chains such as in a circular economy. The rising need for attention in sharing of economic concepts has significant impacts in the design of supply chain, control, and planning in the sense that focus is likely to shift from products delivery to service delivery. Integration Supply chain integration refers to the quality of departmental collaboration needed to achieve unity of effort by environmental demands in business (Power, 2005). There are six types of supply chain integration such as internal integration, consumer’s integration, planning and technological integration, service supplier and material integration, relationship, and measurement integration. There are four steps of SCI (supply chain integration). The first step represents fragmented activities within an organization or company. The second step talks about limited integration in neighboring functions such as materials and purchasing control. The third step needs end planning of internal integration within a company. The last step represents a true SCI which comprises upstream and downstream flow to suppliers and customers respectively. In the process of seeking to develop partnerships, companies find themselves in situations where the internal processes get interconnected and exceed past boundaries. Physical logistics start to depend on information technologies which become the enabling factors for cooperative arrangements. Therefore, companies are faced with the problem of managing pilot enterprises which exists as a network of relationships, processes, and technologies. This creates dependence between the company and the branched enterprises. The nature of supply chain management becomes clear for the companies involved and the company which successfully integrates it develops a competitive advantage. Integration of supply chain management is a means through which an organization can resort in an effort of costs reduction and improve customer satisfaction. The supply network requires an infrastructure which creates an enabling environment for an efficient flow of communication and a streamlined logistics. Partnerships form an important component for the infrastructure. The most efficient supply chain network is that that combines all the requirements in communication, rights of collaboration, physical logistics and provides equal benefits to a large percentage of partners in a company. Communication Effective communication is a significant component for a successful SCM. Many business or companies lack a good communication plan to act as guidelines for employees (Choon Tan et al., 2002). Also, supply chain manager’s lack of proper training in communication and therefore do not have the best attitude towards the whole process. Bad communication in an organization is characterized by a decrease in efficiency through time wastage, resources, and finance. Besides, bad communication decrease the morale of workers, problems on public relations and companies may miss a good business opportunity. Bad communication takes time to develop into a real problem for an organization. An organization in a communication chain can be a remedy for bad communication. A flow of information should be established within an organization. The communication chain should act as a chain of command where all employees comprehend their roles when notified (Choon Tan et al., 2002). A good communication chain creates room for encouraged feedback. The chain, therefore, promotes the up and down flow of information in a command chain. In this way, the employees feel recognized and hence improved morale. Moreover, it allows departmental managers to have an insight where they need to put much effort and where the business will incur additional value. Opportunities in the supply processes for the product The main objective of supply chains is to balance and coordinate persons, actions and economic resources to deliver a product to the end users (customers) (Kouvelis, Chambers & Wang, 2006). The chains comprise coordination in the flow of products, money, and information. Each organization tries to strike a balance and in the optimization of their supply chain to increase profit margins and offer the best service to customers. An opportunity for supply chain is “internet of things” (IoT) which facilitates faster transfer of information between departments in the supply chain to promote decision making, planning, and action execution. Also, companies are able to access a new market from the data delivered through IoT. The new market opportunities are easier to access concerning the operations in the manufacturing department or plant, adjustment to order delivery to customers, and maintenance updates. A company can utilize the system to automatic its manufacturing processes. IoT is more affordable in the current economy and supply chain should have adaptability with the advancements because of new services to be provided which require manpower and action to support. A business which was known to deliver products now concentrate on customer service for example in the printing business, a company that sells printer also offer subscription services to its customers for automatic delivery of printing supplies. IoT system provides companies with the capability to monitor products usage by its consumers. This is a change from the traditional business culture where companies sold supplies on request by customers. This is an example of smarter supply chains. Smarter chains offer many opportunities for businesses: Demand predictability and visibility of inventory IoT system enables businesses to acquire better demand predictability due to visibility of real demand time and service signals (Kouvelis, Chambers & Wang, 2006). Companies can adjust promotions and pricing techniques for fast movement of goods, to shape demand, facilitate an increase in revenue and increase their product demand using a limited supply of market. Efficiency and tracking With IoT, the efficiency of tools and equipment is improved and other assets applied in manufacturing operations (Kouvelis, Chambers & Wang, 2006). It is prudent to know the lifespan of a given operating machine and the quality of the final product. IoT incorporates sensors which collect information from company assets and therefore enables tracking of the whole production facility. Moreover, the environmental and machine operating state can be monitored to ensure proper operation of the machines to avoid unpredictable failures. Quality and sustainability Companies that strive for environmental sustainability have a better competitive advantage especially in production, managerial skills of the supplier and attractiveness to workers (Kouvelis, Chambers & Wang, 2006). The system provides control to management quality and is helpful in identification of any failure from the source. The use of user-defined checkpoint facilitates verification of item for standards and specifications in design from the point of product receipt to the point of shipment of the end product. Also, IoT can be used to monitor product safety, radiations emissions, temperature, pressure and atmospheric conditions by use of sensors. This ensures the safety of the employees. The effectiveness of the processes from the point of origin to the point of consumption Effectiveness in supply chain lies in the transportation of products from the point of production to the point where the end user is able to access. Large companies with many suppliers, complicated assemblies, large inventory system and customers with high purchasing power gain most from the practice of supply chain management (Fawcett et al., 2008). For such companies low or moderate supply chains, the purchasing power decreases. Transportation costs and purchase of inventory is sustainable for companies which utilize SCM strategies. Logistics focus on either internal or external business environment. This section of supply chain management can either be simple or become complicated depending on the nature of the business. In complicated logistic procedures, third parties are employed to carry out logistics for a given business. The use of the third party involves external organizations or individuals to execute logistics activities (Fawcett et al., 2008). An effective logistics ensure timely distribution of goods to the potential consumers. Businesses are incomplete without a proper supply chain. Managing any business is complex; however the product. The criteria likely to optimize revenue are variant depending on the business ventures, but the characteristics of an effective supply chain remain the same. Effective logistics requires strong leadership, a sound design, flexibility, focus on customization and need for improvement. Conclusion Supply chain management requires a combined collaboration between suppliers, producers, and target customers. SCM comprises transforming products from their raw materials to delivery of end products and also managing of flow of important information. SCM also constitute incorporation of these actions to improve the existing relationships among different parties and at the same time ensuring a competitive advantage by offering high-quality products and low cost of products. Supply chain management can be linked to enterprise resource planning (ERP) and systems of electronic commerce. With advancement in technology, supply chains will be more dynamic consisting of collaborative networks where productivity is maximized. Producer’s needs to ensure costs and incurred risks are shared equally in the supply chain.  Reference Choon Tan, K., Lyman, S. B., & Wisner, J. D. (2002). 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