LARG And Supply Chain Management

833 Words 4 Pages

(Grilo, 2011) In modern business environments, an effective supply chain management is crucial to business community. Competition between supply chains has replaced the traditional competition between companies. Lean, Agile, Resilient, and Green [LARG] paradigms are advocated as the foundation of a competitive supply chain. To make supply chain more competitive, capable of responding to the demands of customers with agility and capable of responding effectively to unexpected disturbance, in conjugation with environmental responsibilities and the necessity to eliminate processes that add no value, companies must implement a set of LARG and supply chain management practices and key performance indicators to measure their influence
…show more content…
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. As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers [ASP] who promise to provide part or all of the SCM service for companies who rent their service. Supply chain management flows can be divided into three main flows: The product Flow, The information flow, and the finances flow. The product flow includes the movement of goods from 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 the title ownership …show more content…
Managing these elements to maximize profit in the face of constantly changing environment requires a methodology by which process and technology enablers come together to create a risk-optimized management strategy as a way to stay competitive. Companies no longer can rely on a mix of spreadsheets and guesswork traditionally used to make key strategic decisions. Implementing a best-of-breed approach to supply risk management provides companies with a considerable competitive advantage in the face of supply disruptions. (Vasquez,

Related Documents