Importance of supply chain management

immensity of tot up train circumspectionIntroduction allow scope trouble is a method of moving materials and associated in initialiseion efficaciously and efficiently within entomb and intra organisations. To get this task done in the desired way, use of e-business applications is essential. cede string management includes the coordination of the organisation involved in the picture spatial relation activities with the customers who argon receiving the products (Chaffeey, 2009, pp 331).Supply compass management starts with identifying the resources and linking them with the biddinges which commence with the sources of raw materials and continues until the actors line of the items done through the destruction consumer. A tot up filament practise differs from companies to companies but they provide the benefits of specialisation of solve and the economy of scale (Trkman et al, 2007).Importance of bring out drawing string managementAn improved supply cooking sto ve adds well-made protect to the organisations operation which ultimately gives superior value proposition to the end user for which efficient customer response (ECR) is crucial because ECR deals with the demand management which is required for satisfying the demand of customer by quickly and in effect applying product assortment strategies, rapid introduction of the new product and market talk by reducing stocktakings and delivery time (Chaffeey, 2009, pp 335).Elements of supply arrange managementThe way the knowledge and flow of information is processes and its outcomes received on with protection of intellectual property are important part in a supply mountain range strategy. Knowledge here is the information that the organisation has accumulated through twelvemonths of experience and applying them for planning and implementing strategy. The improvement in the processing engineering science of computers and advent of softwares like MS outlook, Lotus Notes that hand ov er facilitated the arrangement of discrete information in a logical and multipurpose manner, these abilities give rise to the concept of knowledge and information management which is crutial for effectively managing the supply chain.For an organisation which is highly influenced by customer needs and expectations for them knowledge management is of great signifi dirty dogce in two main areas that are customer intelligence and new product innovation as during planning to customers there are multiple touch points in the organisation where customer interacts with it, Therefore the ability of an organisation to reap information about the customers behaviour and choice on this touch points proves to be a critical wealthiness of information which helps in customer retaining and growing customer value. In tell apart with the new product innovation, the knowledge which flows across the providers, customers and market factors by sacramental manduction it across the supply chain leads to innovation and increased involvement of supplier in the innovation process (Croom, 2005).Benefits of adopting Electronic Supply Chain counselingThe Following improvements can be found by adopting the e-business supply chain managementCost consummation by improved productivity and pass up input prices Customer Service by providing service quality mathematical process capability by maintaining consistency in qualityProductivity and dependableness by increased control of material flows along the supply chain (Tan, 2001)Supply chain management involves improving the internal processes, but overly processes performed in conjunction with suppliers, distributors and customers. It also provides great opportunities to improve product performance and deliver superior value to the customers. As a result supply chain management can dramatically have an impact on the profitability of a company through reducing operational court and increasing customer satisfaction and so loyalty and re venue (Chaffey, 2009, PP335).Supply Chain ModelsThe supply chain model from the system viewpoint can be seen as involving the following processes attaining resources or inputs, transforming the resources/inputs into outputs that is the product/services and at long last delivering the outputs to the end customers. In name of e-business the supply chain can be optimised to provide better and efficient delivery mend minimising the monetary value.Push and take away supply chain modelPush supply chain These involves delivery of product/service to passive customers. The objective of this model is optimising the process while attaining greet effectiveness and efficiency. The features of this model are fall inment of new products, entropy integration, minimised technology utilisation, longer calendar method time and the enceinte stemma.Pull supply chain This involves value delivering to end customers. This supply chain includes active customers who get on improved quality and val ue of products/services. The model emphasise and identifies the requirement of customers by carrying out market research for developing and improving the products. The supply chain focuses on delivering value while reducing cost.Upstream supply chainDisintermediation This involves civilisely buying from the supplier. This results in lesser costs and reduced cycle time.Reintermediation This involves business to business exchange of the products.Downstream supply chainDisintermediation This involves direct selling to customers, while incurring reduced cost of sales and heighten cycle time.Reintermediation This involves competition in newer markets by business to business transactions. circumvent chemicalsShell chemicals is one of the largest petrochemicals producers in the world who supplies the bulk material to the large industries for the manufacturing of industrial and the consumer goods. It is very crucial for such an organisation like bewilder to have a well planned and contro lled Supply chain management.Issues earlier to the adoption of electronic supply chain management in shell, everything was managed manually that involves lot of time consuming activities. Due to this time consuming process there was a threat that a customer might stand up a lack of important ingredient at plant time. thusly to tackle these kind of problem companies maintain safety stocks to avoid shortage, it involves cost to maintain any safety stocks.Supply chain processSIMONIn 1995 shell has adopted SIMON (Shell Inventory Managed Order Network) system that acts as a Electronic entropy interchange initially for managing the downstream supply chain. in short after its success in downstream it was applied to upstream process.SIMON facilitates supplier to get anticipated demand, calculate stock and track shipment emplacement for which customer needs to input three kinds of data, that are current stock level, estimated demand for stock and location, timing and quantity for the ship ment details.ElemicaIn the year 2005, shell updated itself by implementing Elemica in its supply chain that was founded by nigh 22 leaders of the chemical industry. The major benefit to adopt Elemica was standardisation. It offers value to their customers by automation of the processes in the business. For instance the buying and selling of chemicals and and so expand the value of that connection by making the new market channels and efficiency opportunities by means of our web solutions and supply chain offerings (Elemica, 2010).Integrated Supply chainElemicas revolutionary and new business interlock completely links the operational base, while eliminating the hurdles of transaction and communication between the processes. Flawless accessibility and transparency of the supply chain provides the baron of efficiently carrying out the operations and removing access personnels, assets and inventory. Elimica utilises a standard format in its integrated supply chain structure, which is also favourable for organisations be in similar industries.ProcessThe supply chain Elimica records and maintain inventory and sales forecast on daily basis, that helps in analysing customer satisfaction. This is except collaborated with the ERP system of the Elimica hub ().Global reach and connectivityElimicas founders happen to be the some noteworthy and established leaders in the global industry. This provides an international base for business, that helps in drawing the attention of twain buyers and sellers. This phenomenon further builds up an opportunity to develop relations with new customers. Elimica acts as a facilitator for business transactions on this global platform.SecurityElemica has adopted several measures to protect accessibility and data flow. This helps in safeguarding the transactions of customers/participants. Strict data protection measures, encryption technology and transparent firewalls are features of security offered by Elimica. The policies and pr ocesses are regularly go over to meet the security standards. ConclusionAfter critically evaluating the supply chain management of Shell chemicals, it was found that the benefits of adopting Elemica is seen in the form of improvement in supply chain management that includes reduced cost resulting in cost efficiency, improved quality resulting in customer satisfaction, increased capability of process and increased productivity and dependability. Ultimately these improvements fuelled the profitability of the company.RecommendationWhile dealing with the decisions regarding the implementation of e-business in the process of supply chain, companies should look for the strategy that is most appropriate for the unusual processes combined with the blueprint of the operation. It is mainly important for those clear organisations which cannot invest huge money at particular time period.Managers should conservatively consider coherence between the internet tools to adapt choices in terms of integration with customers and supplies.The internet can support and facilitate information sharing, both in collaborative or in market-type relationships, or can be used to support closer integration (system coupling) with the partners (Cagliano et al, 2005).Prior to a thickening switching to a new SCM system there should be qualified testing to see if the system meets the clients requirements.When a standard supply chain template is modified to suit a customers requirements, particular care should be used in the implementation and provider firms should be very crying(a) that client forms follow the providers implementation methodology (Sridharan et al, 2005 ).ReferenceCroom, S.R (2005), The impact of e-business on supply chain management, International journal of operations and work management, Vol. 25 No. 1, pp. 55-73.Chaffey, D (2009) Supply chain management E-business and E-commerce management. Harlow. Prentice Hall,PP 331Chaffey, D (2009) Supply chain management E-busines s and E-commerce management. Harlow. Prentice Hall,PP 335Cagliano, R., Caniato, F. and Spina, G. (2005) How companies are sharing their supply chain through the internet International Journal of operations and production management, Vol15 No.12, pp1309-1327.Elemica (2010) Supply chain Online. Available from http//www.elemica.com/solutions/elemica-solutions.html Accessed on 15/03/2010.Sridharan, U.V., Caines, W.R., Patterson,C.C (2005), Implementation of supply chain management and its impact on the value of firms, Supply chain management An International Journal, Vol10 No. 4, PP 313-318.Trkman, P Stemberger, M.I Jaklic, J and Groznic, A (2007) Process blast to supply chain integration, Supply chain management An International Journal, Vol12 No.2, pp 116-128.Tan, K.C. (2001), A framework of supply chain management literature, European Journal of purchase and Supply Management, Vol. 7 No. 1, pp. 39-48.