A publicly-traded company that had an accounting change
August 24, 2020

Discuss traits of an effective supply chain. (150 words)

2) A. What factors have led to increasing health care costs?

B. What are some ways to control these costs? As you discuss solutions, please acknowledge potential criticisms of your proposal and offer counterpoints for consideration.
(150 words)

The most effective supply chain management have consistent traits that will set the apart of all others. According to TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE (n. d.) some of those include, but are not limited too-

• Strategy is the first step of any effective management plan, whether it be for logistics or manufacturing. When looking at businesses who have very effective supply chains them most often have a very solid strategy plan in place that the business build upon while moving ahead. This plan will drive the planning, designing milestones and most all other steps with the development and implementation of the plan going forward. You must have a direction to what you are doing to deal in the global business environment. The best have a supply chain management strategy that enables them to plan the tactical operations and to prioritize suppliers, customers and products. Strategy sets the platform for supply chain execution. Supply chain leaders understand that supply chain management is a process that crosses their company and extends beyond the company. They know SCM is about the flow of products and information and that the supply chain stretches from suppliers through to store shelves or to customer warehouses. The supply chain strategy reflects their present position in the market and with supply chain management and what must be done to align with and drive the company strategy. If the company’s strategy means a significant shift as to market, products or customers, then the supply chain must change. There is no such thing as “one” supply chain management approach and one-size supply chain does not fit all. The strategy is long-term, recognizes globalization, and has a growth focus. They also understand how dynamic the strategy must be. They know there is often resistance to change that can happen within companies. That means the supply chain strategy must be a facilitator of change, be agile and able to recognize, incorporate and adapt to drive toward the changes required (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

• Metrics do matter and need to be sure you have the correct measures in place. They know how well their supply chain is or is not performing because they have key performance indicators to tell them. Financial measures are poor ways to evaluate, direct and manage supply chains. For overall evaluation, good supply chain executives look at select metrics, such as the perfect order, for both customers and for suppliers. Namely it is an order that is delivered complete, on time and accurate. They also focus on a key enemy of all business-time. International sourcing has created opportunities for lower-cost products. However it has also created challenges as to lead-times, reliability and resultant impact on inventory levels, potential out of stock conditions and logistics costs (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

• Lean or going lean, is similar to going green. We all know that lean supply chain management is more than warehouses and transport topics, they have a total supply chain package. Within this package it focuses on both domestic and international to ensure your company is competitive throughout the globe. They stay focused on adding value as defined by customer, using the pull which complements SCM, keeping a customer focus, and removing the waste of inventory and time (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

• Technology is considered a process enabler, which without a strong process enabler, many of the much needed benefits of technology are lost or lessened. We all know for a company within a logistics field to make it, national and/or globally we need to have technology that is vital for supply chain execution to provide event management, exception management, complete supply chain visibility from purchase orders to delivery orders, and not just in warehouses or where a truck or container is. (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

• Supplier performance understands the total supply chain process and know that its success is dependent upon supplier performance. So, if the supplier’s performance is not that great or it is very good, it will have a negative or positive impact on the revenue, inventory and profitability. Companies and their supply chains must control suppliers, and not let suppliers control their business (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

There will always be the issue of where trying to go lean and making sure that we are reducing waste of inventory and time starts. That is why it is important for integration and collaboration to be used throughout the supply chain process, not only for the company, but for the suppliers and customers. We know with the use collaboration all key players within the supply chain will be able to provide additional focus and resources to the total supply chain.

• The last couple areas that well usually be involved within the best supply chain will involve –

◦ Risk mitigation which involves the entire supply chain so that they can identify critical areas, including suppliers, logistics service providers, ports and other potential risks that could disrupt the company’s supply chain (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

◦ Green or going green is a concept that we all hear much too often these days as we are trying to reduce the carbon footprint whether it is energy consumption, packaging or other areas that negatively impact the environment (TRAITS OF SUPPLY CHAIN EXCELLENCE-OR HAVING THE SUPPLY CHAIN YOU DESIGNED AND DESERVE, n. d.).

When a company combines all these traits they start to become an agile and responsive company that is better able to meet the needs of its customers, while still being able to control some of the outside forces.

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