Supply Chain Management Essay Sample

Supply Chain Management System essay, UAE

In this essay, we will discuss the supply chain management system.

Supply chain management is a crucial determinant in the long-term prosperity of a company. Efficient supply chain management is a feature shared by many successful businesses.  In this sample, we will discuss aspects of supply chain management, working, and its importance to a business.

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What is a supply chain management system?

Supply chain management(SCM) is the management, how products and services emerge from raw materials into assets traded to customers. It involves the methods of transferring and storing the materials used to produce goods, the finished products until they sell, and tracking where sold products go so that you can use that information to drive future sales. The supply chain itself includes everything from the procurement of the raw materials to make the goods to deliver the end product to the consumer.

Aspects of Supply Chain Management

The process of SCM includes every aspect of business operations, including logistics, purchasing, and information technology. It integrates materials, finances, suppliers, manufacturing facilities, wholesalers, retailers, and consumers into a seamless system. Here are some of the steps involved in establishing a system of supply chain management:

  • Planning and designing the supply chain when the business has established
  • Carrying out the plan and carefully controlling for the variables
  • Monitoring the performance of each part of the supply chain
  • Communicating regularly with supply chain partners and ensuring their participation in the plan

Importance of supply chain management in UAE

Today, more than ever before, supply chain management has become an integral part of business and is essential to any company’s success and customer satisfaction. Supply chain management has the power to boost customer service, reduce operating costs and improve the financial standing of a company, but how does this work? 

The UAE is ready to be one of the world leaders in logistics and supply chain management. UAE logistics alone is expecting to grow by 5.7%. In UAE, this exponential growth in the supply chain management associates with several strategies has undertaken by the government and international events planned, like the Dubai 2020

Improve Customer Services

  • Customers expect to receive the correct product mix and quantity to deliver on time. 
  • Products need to be on hand in the exact location. Customer satisfaction breaks if your car’s brake pads fail and the auto repair shop is delayed in making the repairs because parts are not available in-house.
  • Follow-up support, after a sale, must be done quickly. When an appliance store sells a furnace with a warranty, and it breaks down when temperatures are below freezing, it is a possibility the customer will be irate if the heating unit does not fix immediately.

Reduce Operating Costs

  • Decreases Purchasing Cost – Retailers depend on supply chains to quickly distribute expensive products to avoid sitting on costly inventories.
  • Decrease Production Cost – Any delay in production can cost a company tens of thousands of dollars. This factor makes supply chain management ever more important. Reliable delivery of materials to assembly plants avoids any costly delays in manufacturing.
  • Decrease Total Supply Chain Cost – Wholesale manufacturers and retailer suppliers depend on proficient supply chain management to design a network that meets customer service goals. It gives businesses a competitive edge in the marketplace.


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Improve Financial Position

  • Insert Profit Leverage – Businesses value supply chain managers because they help control and decrease supply chain expenditures.
  • Decrease Fixed Assets – Supply chain managers decrease the use of fixed assets such as plants, warehouses, and vehicles, essentially diminishing cost.
  • Increases Cash Flow – Firms appreciate the added value supply chain management contributes to the speed of product flows to customers.

Advanced Supply Chain Management Tech

Most supply chain solutions incorporate business analytics features that measure past performance. These can be broadly termed diagnostic analytics. Some take the next step of determining future trends by using predictive analytics to tap into the company data. These powerful tools help supply chain managers keep abreast of important economic indicators, such as shipping costs, currency variations, and other inflationary factors.

But the most efficient analytics are those that tap into the wealth of information provided by organizational data, diagnostic analytics, and prescriptive analytics to determine optimal supply chain management decisions. This exciting field has various names, such as artificial intelligence, machine learning, supply chain modeling, and prescriptive analytics. It differs from other forms of analytics in that it models the organization and then uses organizational and external data to determine the best supply chain decisions. 

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