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Aspects of Supply Chain Management


Supply chain management is the administration of a group constituting interconnected businesses with the major aim of improving product and service delivery. This management entails the handling of raw materials; overseeing the production process and transportation of the finished goods to the market. This work process between the three stages of supply chain management is referred to as the supply chain. It can also be argued that supply chain management entails fashioning; organizing; execution; directing; and monitoring. All these are done with the goal of making a profit; developing the infrastructural system; meeting the dynamic market standards and demands as well as improving the performance of the group of operations in general. (Geary & Zonnenberg 42-56)

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The location that should meet both the qualitative and quantitative demands of the business. These variables include the geographical; administrative; and resource availability conditions that are needed for the working of the Supply chain. In the case of developing an e-business supply chain, the resources that must be available include internet services; power, and the consumers of the services. (Andersen 57-65)

Transportation and logistics is the aspect to do with the availing of the goods or services to the clients that entail the service delivery system; delivery sites and the quality of services delivered. In the e-business case, services will be availed to clients through the web and the outlets can take the forms of organizations and institutions that are to manage the provision of these services. This part also has to do with the sourcing of raw materials for the activities of the business that include personnel and raw data. (Geary & Zonnenberg 42-56)

The aspect of inventory and forecasting entails the activities of market research; demand-supply decision making; and management of service providers that cover the areas of pricing and other variables with the aim of optimizing quality service delivery. Marketing and channel restructuring is the other aspect and covers the areas of demand signal detection; produce rationing; outlet price variations; increased communication; and advertising that help maintain clients as well as developing new ones. This application in the e-business sector entails service provision like banking among others. (Pohlen 35-43)

The other aspect is sourcing and supply management that covers the areas of input information or material acquisition that are converted into consumer services by the e-business. An example of this is the outsourcing of funds that are used in giving loans and credit to clients. The aspect of information provision and electronic mediation of the environment also forms a core part of the supply chain, as it ensures that clients are able to receive information and services at the time of need. This is achieved through electronic media like televising; the internet and the automation of tellers and vending machines. (Geary & Zonnenberg 42-56)

The aspect of new product introduction and product designs is important in that it ensures that the clients of the e-business are kept interested in the business due to the availability of a spectrum of services, and varied service designs. An example of this is the different banking services provided to meet the different classes and needs of bank clients. (Geary & Zonnenberg 42-56)

Service and after-sales services is another aspect that plays the role of maintaining available clients by giving services beyond the measure expected. Green issues and reverse logistics that play the role of ensuring that wastage is at minimum, and the environment is conserved through re-use of used resources and conserving the available resources is also another aspect. Other aspects include Strategic alliances; business cooperation and outsourcing that seek to reduce the cost of acquisition and production expenses through getting inputs from outside at a lower cost so as to improve business profitability. (Pohlen 35-43)

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There is also the aspect of global standardization and issues, especially the e businesses that operate in different countries or aspire to do so. These include cross-border delivery and sourcing; currency exchange rates; custom standards and taxation. (Pohlen 35-43)

Supply management metrics

These include the evaluation of organizational and economic issues both within the supply chain and the general e-business industry. These include accounting materials; business publications; inside business literature and other supply chain improvement information. (Geary & Zonnenberg 42-56)

The importance of developing supply chain measures that are either integrated or non-integrated is that, they help evaluate the performance within the supply chain and give information on the level of customer satisfaction. These measures are also useful in purchasing; forecasting; production and distribution to meet the customer demands. They also help in developing the networks required for the interdependent operation of the supply chain. In choosing the metrics of a supply chain, the relevance; reliability; accessibility and validity of the measures is considered. (Andersen 57-65)

Table showing the impact of supply chain measures on client number

Phase one Phase two Phase three Phase four
Personnel 100 100 100 100
Inputs(computers) 30 30 30 30
Regular banking Yes Yes Yes Yes
Credit advance None None Yes Yes
Customer service None Yes Yes Yes
Reduced charges None None None Yes
24 hour banking None None None Yes
Localized banking( Branches) None Yes Yes Yes
Client number 1,000 1,200 1,500 2,500


The legal; ethical and metric measure put in place n the operation of supply chain management influence greatly and dictates the level of financial success that the business chain attains. This is because they help increase customer satisfaction levels thus increasing the client population.

Work cited

Andersen, Arthur.” Performance management: don’t build your own.” Manufacturing Systems. (2002): 57-65

Geary, Steve. & Zonnenberg, Paul. “What it means to be best in class.” Supply Chain Management Review. (2000): 42-56.

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Pohlen, Terrance. A framework for developing Supply Chain metrics.” University of North Texas. (2005): 35-43.

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