Supply Chain Management of Square Pharmaceutical
Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory and Communication is the transmission of information from one group or individual to nother.
Business communication is very essential now days to make contacts with people and for trading. Whenever a business wants to make a good business proposal or introduce a new concept, communication plays a very big role. Communication also helps in the conveying of message among the different employees or customers of the organization. Communication helps to direct employees to attain their goals without any misunderstanding or confusion. This paper discusses the different roles of supply chain management, different role & ways of supply chain management .
The studye also tried to find out what is the roblem and shortage of SQUARE's supply chain management system to improve themselves. Keywords: Supply chain, Operations process, Distribution policy, communication process, Forecasting, Planning *Economic Editor, Daily Ittefaq and Adjunct Faculty, Atish Dipankar university of Science and Technology Introduction goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed).
Order custom essay Supply Chain Management of Square Pharmaceutical with free plagiarism report
450+ experts on 30 subjects
Starting from 3 hours delivery
As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers (ASP) who romise to provide part or all of the SCM service for companies who rent their service. flow The information flow The finances flow SQUARE today is a name considering Pharmaceutical world, as well as synonym of quality- be it toiletries, health products, textiles, Agro Vet products, information technology and few more.
But in the year 1958 ,the company was originally started with Pharmaceuticals. Now that small company of 1958 is a publicly listed diversified group of companies employing more than 12,000 people. The current yearly group turnover is more than 300 million USD. All these were possible due to Samson H Chowdhurys innovative ideas, tireless efforts, perseverance and dedication with self confidence which contributed to his successful achievements.
The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine he best way to fill an order.
Execution applications track the physical status of goods, the management of materials, and financial information involving all parties. Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies.
By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's lients), SCM applications have the potential to improve the time-to-market of 2 products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution.
A number of major Web sites offer EProcurement marketplaces where manufacturers can trade and even make auction bids with suppliers. Basic research question of the study is whether Square Company as a whole can manage supply chain properly? Definition Of Communication Or Sharing Information A modern communications system is first concerned with the storing, processing and sometimes storing of information before its transmission.
The actual transmission then follows, with further processing and the filtering of noise. (KENNEDY, 1998) Communication must include both the transference and understanding of meaning. (ROBBINS, 2003). Communication is the transmission of information and meaning from one individual group to another. (GUFFY, 2000). the receiver is decoding the idea or concept. Therefore without feedback no communication will happen or exist. (HUSSAIN, 2005) We said communication is "how we share any information with others".
So, we can define communication as a transfer of meaningful message to the receiver with the hope to receive a feedback. AN overview Of SUPPLY CHAIN MANAGEMENT Supply Chain Management as a concept has been widely accredited to a Booz Allen consultant named Keith Oliver who in 1982 defined the concept as follows: "Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Supply chain management ps all ovement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption". This seems to be the earliest published definition and therefore places the concept of Supply Chain Management at approximately 26 years old. We can see that "Supply Chain" without the "Management" is referenced in the definition, so we know that the general idea of a supply flow through a business was recognized prior to Olivers definition.
What Oliver really captured was the conscious and deliberate control, integration, and management of the business functions contributing to, and affecting that supply flow hrough the business, for the purpose of improving performance, costs, flexibility etc, and for the ultimate benefit of the end customer. 3 The concept has been defined in simpler terms since that time and is often captured with five words: Plan, Source, Make, Deliver, and Return.
Both of these definitions allude to a manufacturing origin but of course Supply Chain Management is as relevant to service, retail, distribution, and most other types of companies as it is to manufacturing. The area of Supply Chain Management has enjoyed a meteoric rise in significance over the last twenty to thirty years as businesses have tried to establish dvantage, and felt the pressure to keep up, in an increasingly homogeneous and competitive global business environment. Japanese manufacturing companies brought great emphasis to the area of Supply Chain Management in the 1980's and early 1990's.
Awareness of Supply Chain Management tools such as "Just In Time" and "Kan Ban" spread rapidly and became globally accepted best practice amongst volume manufacturing businesses. Western businesses raced to keep pace with a rapidly changing environment, dragging their supply bases, and sometimes employees behind them. At the same time companies like SAP and Oracle were eveloping the complex IT systems that would be essential for enabling large complex businesses to effectively integrate and managing the sub areas that combined to make complex supply chains.
Of course the elements of Supply Chain Management have always existed in business. What changed was the willingness of businesses to recognize the inter- coordination and integration, both from a strategy / planning perspective and operationally. The sub areas comprising a supply chain include: Forecasting/Planning Purchasing/Procurement Logistics Operations Inventory Management Transport Warehousing Distribution Customer Service Today, Supply Chain Management is an accepted term in our business glossary. However, it is difficult to find a standard model of Supply Chain Management operating in the business community.
We continue to see variations on the theme. Some business will refer to and manage their supply chains in a coordinated and all encompassing fashion, including all of the sub areas defined above. Others will integrate some elements of the supply chain, for example purchasing and logistics and call this Supply Chain Management. Many will refer 4 conceptually to Supply Chain Management, but only address it specifically at the eneral management level. One area of confusion arises because Supply Chain Management is both a horizontal business function (i. e. anaging the supply chain in a business), and a vertical industry sector (i. e. businesses involved in managing supply chains on behalf of their clients). A company like TDG operates as a supply chain services provider, within the vertical supply chain industry sector. But each of the clients serviced by TDG will employ supply chain staff within their business operating on a horizontal basis across their organization. The "supply chain industry' sector as the vertical is often eferred to, is largely restricted to transport and storage type operations.
Distributing products on behalf of clients. Whereas, the horizontal supply chain functional areas encompass the entire supply chain spectrum across a business. Supply Chain Management has matured from a compelling method of deriving competitive advantage, to a "ticket to ride". Its is now a baseline expectation for any company wishing to compete in the 21st Century, and with that the professions and occupations comprising Supply Chain Management are now firmly entrenched in the armory of essential business executives.
The sub areas comprising Supply Chain Management are defined further below: Forecasting / Planning All business needs to forecast and plan. To look forward and predict what will be required in terms of resources and materials in order to deliver their product or demand planning, inventory planning, capacity planning etc Purchasing / Procurement The commercial part of the supply chain is purchasing. Otherwise it's known as Buying or Procurement. This is where a business identifies suppliers to provide the products and services that it needs to acquire in order to create and deliver its own ervice or product.
Costs and terms of business are negotiated and agreed and contracts created. Thereafter the suppliers' performance and future contractual arrangements will be managed in this area. This area of the business is sometimes referred to as purchasing, sometimes, procurement, buying, sourcing, etc. However, all titles relate to the acquisition of materials and services. The difference between purchasing and procurement is largely academic as, whilst there is a theoretical difference between them, businesses use the titles interchangeably for the two variations of activity.
You will for example find manufacturing companies with purchasing departments that are actually doing procurement roles, and you will find service based organizations with 5 procurement departments but in fact doing purchasing roles. In its strictest definition purchasing is limited to the actual commercial transaction and no more, whilst procurement includes the wider elements of the acquisition, including logistics and performance management. In its strictest definition logistics refers to the movement of goods or materials, whether inbound, through, or outbound.
In some manufacturing businesses orecasting and planning will be found within a logistics department, in other businesses logistics will be exclusively managing the movement and transportation of goods and materials. Operations are a general management type activity ensuring that a business uses its resources effectively to meet its customer commitments. Usually referring to the conversion activity of the business, i. e. the point where the acquired resources and/ or materials are converted into the product or service that the business is selling on to its customers.
Sometimes found within Logistics Management, or Demand Planning or Operations, Inventory Management typically takes responsibility for both the replenishment of physical stock, the levels of physical stock, and of course storage and issue of physical stock. Stock may be materials and goods sourced from suppliers, work in progress, or finished goods awaiting sale/dispatch. Transport management can involve the control of a company owned fleet of vehicles, collecting, moving, or delivering materials and goods, or managing transport services sourced from a 3rd party transport provider.
Like transport management, warehousing can involve the control of company arehouse space, or managing warehouse space sourced from 3rd party providers. 6 Distribution involves the physical distribution of the company's products to the sub- distributor or directly to the customer base. Typically this is a combined transport and warehousing operation, responsible for storing and delivering products to meet the customer's needs. Again this combined activity will often be placed with a 3rd party service provider who will control and implement the processes.
Most people do not recognize customer service as part of supply chain management, but it is in fact the final piece in the Jigs aw. Having taken the business inputs, created and delivered a product or service, the final element is to check that the customers expectations were achieved, and manage any actions necessary to meet your customer obligations and commitments. Supply Chain Management System In Square: For any organization supply chain management communication process is very important.
Cite this Page
Supply Chain Management of Square Pharmaceutical. (2018, Jul 08). Retrieved from https://phdessay.com/supply-chain-management-of-square-pharmaceutical/
Run a free check or have your essay done for you
