Supply Chain Management: Supply and Demand

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The purchasing function and evolution of supply management in the 21st century involves a very detailed, and promising career. The management process related to purchasing and procurement has been refined to a defined science—which is of benefit to both organizations as well as to the suppliers that purvey them. Additionally, it is noteworthy to mention that individuals who choose to involve themselves in this sort of career will more than likely have a fair degree of success and monetary compensation. This statement is based on the fact that procurement is one of the basic functions of any type of organization; whether private or public, this line of work will always be in demand. 

Supply chain management and strategic supply chain management, when implemented correctly, can greatly benefit organizations in the private and public sector. Proper implementation can significantly enhance sales while decreasing time to market, boosting customer satisfaction and quality of product and services, and fostering an atmosphere of innovation and flexibility. Additionally, strategic supply chain management can substantially reduce costs associated with operations and business expenses by monitoring supply and demand trends, acquisitions, downtime, processing, quality, risk, and others (Burt et al, 2010, p. 9).

One of the most eminent factors that contribute to the proper implementation of a supply chain management initiative is involving and gaining the approbation from upper-level management. Nothing can be achieved without the commitment of upper-level management, which can then properly restructure an organization’s resources and focus so that it can include supply chain management and the particular initiatives required of a company. Other key methods that help an organization to become cognizant of the proper factors for implementing a supply chain management initiative include benchmarking ad developing metrics (Burt et al, 2010, p. 17). Some prime examples of companies with exemplary supply chain management strategies are WalMart, UPS, and Home Depot.

The establishment of strategic alliance agreements with select vendors is definitely more conducive to organizations within the private sector than with the public sector, for the simple fact that there are very specific laws and regulations that govern the reduction of a supplier base for public section entities (THE ATTACHMENT SOURCE). There are no formal laws for the governing of organizations in the private sector regarding this particular issue, so it certainly behooves these entities to form strategic alliances with a limited number of suppliers. Certain circumstances, however, can allow public entities to reduce their supplier base. 

If I were the Chief of Contracting for a Fortune 500 Company, I would like to have a relationship with my supplier in which my organization was one of the few organizations that had use for the supplier’s product. Such a relationship may not be practical depending on the industry an organization is in, however. Still, this would be an ideal situation in which my organization and the supplier could ideally deal with one another exclusively without threats of competition. However, regardless of the degree of competition involved in a relationship between an organization and its supplier, it is crucial to have a degree of respect and mutuality that is tangible between these two entities. In this respect, it is advantageous to perceive these relationships as partnerships more than anything else, to ensure that there is reciprocity involved in the treatment between the two organizations. 

The proper balance between personal and professional boundaries is all contingent upon respect. Individuals should respect personal relationships, and make sure that such respect transcends professional boundaries as well.

Reference

Burt, D.N., Petcavage, S.D., Pinkerton, R.L. (2010). Supply management. New York: McGraw-Hill/Irvin.