Advantages of supply chain management Essay

One is cost advantage. Companies that consecrate implemented affix mountain chain management have a 45% put out chain cost advantage over their competitors. 1 Price of raw materials and end point of intersection are optimized due to collaboration between two parties. The sharing of critical information in the early stage of development, and the effective communication of methods and requirements allows parties within the submit chain to effectively benefit each other in terms of cost.Another is sudden time to market. Companies met their promised delivery dates 17% faster than their competition. 2 Through early information and forecast, suppliers can also efficiently endeavor their production and implementation process through collaboration. This allows supplier to reduce the overtake time to produce their products within the supply chain.Disadvantages of supply chain management over traditional competitive procurement processes. First is the difficulty of maintaining supp ly chain relationship. sum chain relationships are probably the most weak and the most susceptible to breaking down. 3 This is because a poor relationship at either part of the supply chain can cause major(ip) problems to the entire supply chain. In todays global market, the customers have the power over the suppliers. Everyone else in the supply chain must readily satisfy the demands or else face the possibility of loosing them.Another disadvantage is the motif to share vital information for collaboration purposes which leaves a company endangered to illegal copying of ideas or methods. Although these can be safeguarded by prissy agreement between parties, but the forces of market competition may fasten violations of agreement intentionally or unintentionally.If supply chain management is in reality a superior way of managing procurement and production, how (if at all) does that modify any of the economic big ideas we examined in Module 1? Supply reach Management plays a major role in the concept of supply and demand. With parties closely related through collaboration, the identification of demand which is needed by the suppliers to support the collaborative company is easy, allowing suppliers to maximize profit given the aim of demand. On the side of the collaborative company, the control of supply of raw materials is easy, which again would allow them to optimize profit.ReferencesFerguson, B. (2000). Implementing Supply chain of mountains Management. Retrieved December 3, 2006 from http//www.apsreview.com/archive/spring2004/images/APICS.pdf1 reckon Implementing Supply Chain Management at http//www.apsreview.com/archive/spring2004/images/APICS.pdf2 See Implementing Supply Chain Management at http//www.apsreview.com/archive/spring2004/images/APICS.pdf3 See Implementing Supply Chain Management at http//www.apsreview.com/archive/spring2004/images/APICS.pdf