Supply Network Essay Example | Topics and Well Written Essays - 4250 words

Supply Network - Essay Example Supply chain network can be described as a customer-oriented operation management. The following diagram is an illustration of the supply chain network process. However beneficial the supply chain designs are to a company’s growth, there are a few flaws to these designs. For example, there is the issue of variation in minimum cost objectives. Still on the case of Sun Orchard, supply chain design objectives will be more beneficial only in the distribution of physical goods (Sun Orchard, 2012). Thereby, Sun Orchard should apply supply chain designs that mainly focus on proximity rather than the costs involved. Consequently, the application of the supply chain designs is not a guarantee that they will bring diversity and applicability to the business. Supply Chain Example: for Sun Orchard juice production. Sun Orchard is a juice producing company in the United States. The company specializes in the production and distribution of all kinds of juices with a global presence in Ameri ca, Australia, Asia and Africa. A simple process of the supply chain network process in Sun Orchard shows the links between the farm, the production plant to the distribution outlets and how materials and information is shared between these links. Supply Chain: Sun Orchard farm Juicing plant National Regional Shops, Distribution Distribution Supermarkets Centers Centers Vending machines The above supply chain is a simple illustration of the way information and material flows from the sun orchard farm, right through the process of production to the customers. Company change Nestle has successfully managed to apply supply chain management strategies for more business... This paper stresses that the current developments in IT have helped Target Australia in the development of its supply chain network process. Information Technology brings a smooth flow throughout the supply network. A supply chain design with system integration is able to provide an integrated transaction processing platform for the company, enhancing its overall performance and improving consistency in information relay and in improving efficiency in transaction processes. For example, the use of Electronic Data Interchange has helped Target Australia in relaying information thus reducing the costs of sending documents. According to Mike Johnston of the Supply Chain Resource Cooperative center, North Carolina University, an EDI helps in time management, create efficiency in the management of warehouse, create accuracy in transactions, and reduce clerical/administrative costs. This report makes a conclusion that The process starts from purchasing, production and then distribution to consumers. Flow of information is a link to the whole chain of supply from supplier and manufacturer to the customer. When the flow of information is unconstrained; the company will increase accuracy of operation by saving costs of production and fostering competitiveness of companies. Product flow profits through this supply chain from materials in raw state to manufacturing and lastly the finished goods which are sold to customers. The SCM deals with purchase manufacture and lastly, transport.