Customer Supply Chain Assignment Example | Topics and Well Written Essays - 4000 words

Customer Supply Chain - Assignment Example It has been noted that corporate and business level strategy has often overlooked the manufacturing function (Kotha and Orne, 1989). Indeed, Skinner (1969) claimed the focus of corporate strategy on a firm's business mix and short-term profitability had eroded the manufacturing infrastructure and its potential link with long-term profitability. Meanwhile, business level strategy has focused primarily on product positioning (Mintzberg, 1988) and has generated only limited discussion on how to actually produce a product or service that fits the prescribed Position (i.e., Porter's value chain (1985) and Kotha and Orne (1989). Now, however, banks are implementing a new type of supply chain management, where the firm views the supply channel as a whole system instead of concentrating on each part of the process. The bank focuses on all efforts, from the development of new products to their launch and successful implementation for the valued customers. This allows more communication to exist within the organisation and problems to be more easily identified. (DeCovny 2003) I shall show that implementing effective supply chain management is an advantage for banks that provide services. ... (Andraski, 1998) A case study from the Banking industry will be used to reinforce the importance and value of supply chain management in the service sector. I shall evaluate implementation steps and the benefits and limitations of supply chain management. Finally, a discussion of our conclusions on the subject of supply chain management in the service industry is provided (Ellram, 1991) Supply chain management has emerged as one of the major areas for companies to gain a competitive edge. Managing supply chains effectively is a complex and challenging task, due to the current business trends of expanding product variety, short product life cycle, increasing outsourcing, globalisation of businesses, and continuous advances in information technology. The Internet has contributed to both the increasing needs and opportunities for improved supply chain management. With the Internet, companies in a supply chain can be connected in real time with information and knowledge shared continuously, new products and services can be designed to fit special market segments, and new supply chain structures can be developed to serve customers in a more direct manner. When a company faces the pressure of excessive inventory, degraded customer service, escalating costs and declining profits, or a poor return on assets, its supply chain is out of control. On the other hand, when a company moves in to new markets or new technologies, it must have its supply chain prepared for the new business challenges and opportunities. Although there are many new supply chain concepts and fads designed to exploit the advantages of the Internet, successful companies understand that the right supply chain strategy is dependent on a number of factors: - The strategy needs to be tailored to meet