The 7 Principles of Supply Chain Management

ARTICLE CRITIQUE: THE 7 PRINCIPLES OF SUPPLY CHAIN MANAGEMENT
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Table of Contents Introduction. 3 Methodology. 5 Key Questions Addressed in The Article. 5 Opinion and Lessons. 7 Viability of the Article. 8 Summary of the Relevant Issues. 8 Conclusion. 9 Challenges for Practice. 9 The Usefulness of the Article. 10 References. 11
Article Critique: The 7 Principles of Supply Chain Management
Introduction
Supply chain management is a crucial aspect that affects a business's general stability and financial viability. When supplies are outsourced, the company's operations strongly rely on their accessibility and prompt delivery. The supply chain managers serve as the business's conduit between suppliers and clients. The article's authors affirm that leadership teams encounter pressure from various sources. Customers' demands for commodities are growing, while the company is under increasing strain to expand and become more profitable. The stress compels the managers to implement strategies designed to satisfy the demands.
The fundamental idea behind supply chain management focuses on the market, which includes stakeholders, market logistics, and projections for all the various business-specific ideas. Although a corporation deals with products from supply to distribution, the supply chain structure also includes other activities that need a dedicated team of managers to oversee the supply chain effectively (Anderson et al. 2007, p.2). The seven supply chain management principles give managers a general understanding of the requirements in the supply chain as demonstrated by the experiences of the most effective manufacturers as they move forward with the supply chain in their different organizations.
The article highlights several important concepts. The study's authors contend that supply chain managers struggle to oversee the entire inventory system because of their constrained operations. The majority of businesses place a strong emphasis on achieving the business's measurable goals in their supply chain management strategies. Therefore, their primary focus is achieving the expected income growth, utilizing all available assets, and lowering operating expenses (Anderson et al. 2007, p.2). The authors, however, take a broad perspective of SCM. The entire process should consider the movement of commodities, the needs and capabilities of suppliers and customers, and the expansion of the business.
The most effective businesses frequently use an integrated approach for their supply chain management structures. They have broad objectives that incorporate technical and strategic adjustments. Along with emphasizing generating revenue, they also ensure that the cost- and asset-utilization principles are maintained. According to Anderson et al. (2007), unsuccessful firms that struggle with supply chain management challenges have preset guidelines for functionality that are not flexible to changing market and economic conditions. Additionally, the businesses have a restricted emphasis, prioritizing generating revenue over other aspects of the framework. The effectiveness of supply chain management and the business's general growth depends on a solid infrastructure. According to Anderson et al. (2007), inadequate infrastructures commonly exist in failing businesses, which primarily restrict business operations and lead to lower client and supplier satisfaction. Such companies tend to have a disorganized change, which disrupts the entire manufacturing process. The managers cannot recognize issues within the businesses and implement solutions due to ineffective supply chain management practices.
The authors' goal is to provide supply chain managers with crucial tactics for modifying their supply processes to increase profitability and the general expansion of their companies. The author’s key suggestion is to employ an integrated strategy in managing stock and manufacturing operations. Therefore, the article proposes incorporating a strategy in managing organizations that appear to use inappropriate techniques in the supply chain management processes and presents the ideas employed by various successful corporations.
Methodology
The article is an empirical study supported by data and personal experience. Anderson et al. (2007) studied over 100 profitable supply chain management companies. The goal was establishing business methods to achieve client satisfaction and increase earnings. The writers' main areas of interest were supply chain technology, forecasting, assessment of performance, and knowledge management. The authors' views and experiences influenced the creation of the seven supply chain management principles.
Key Questions Addressed in The Article
The article poses several queries, all addressed by effective supply chain management fundamentals. The key concerns are how SCM should be tailored to satisfy market expectations, match SCM operations with consumer needs, and make the business profitable through SCM methods. According to Anderson et al. (2007), to be profitable, supply chain management should be tailored to each consumer segment's unique demands rather than offering standard services with the presumption that all clients will be satisfied. According to the article, the SCM should be enhanced and advanced to meet the various needs of the various consumer groups. For example, the authors claim that supply chain management should be tailored to incorporate additional third parties whose function is to bring operations close to the consumers and fulfill the needs of the varied clientele. Expanding stock collection points is the best action since it will allow consumers to obtain goods at lower prices because logistical obstacles will be removed.
The same concept has been explored in numerous supply chain management studies. For instance, Morana (2019) claims that most businesses experience losses in their SCM due to unfavorable locations. Some businesses were discovered to be far away from their suppliers and customers, resulting in high transportation expenses for both groups to access the businesses' services and goods. Clients and suppliers will typically connect with businesses that can meet their demands at a friendly cost, so businesses in inappropriate locations will have fewer clients. According to Anderson et al. (2007), the implementation of supply-chain technology will aid in resolving locational problems, enabling businesses to connect with a broad consumer base. According to the article's authors, Information technology is useful in connecting customers and suppliers and analyzing market data to help with decision-making.
Another difficulty that businesses face is making decisions in real-time. Supply chain companies may need to adjust their operations to suit market trends. But many businesses do not have backup plans to make such quick decisions. Additionally, most of them have complicated decision-making processes, hindering their quick decision-making capacity. Anderson et al. (2007) contend that delayed decision-making may prevent businesses from achieving their financial goals since businesses are constrained by market conditions rather than adjusting to the dynamics. The article responds by making the case that dividing supply chain management into autonomous divisions and setting up a general panel to monitor the operations of the various companies can help address the problem. Their claims are consistent with those made by Keshavarz-Ghorabaee et al. (2020), who suggest delegating and distributin...