Supply Chain Management Processes Dissertation

Pages: 22 (6606 words)  ·  Bibliography Sources: 17  ·  File: .docx  ·  Level: Master's  ·  Topic: Business - Management  ·  Written: May 31, 2019

SAMPLE EXCERPT . . .
Similarly, Premus & Sanders (2015) contend that companies in the modern business environment have gone too far as they outsource core and non-core competencies. Mclvor (2000) contends that some of the core competencies that are currently outsourced to other companies or nations include design and manufacturing. In concurrence, Mohuiddin & Su (2013) state that core competencies that are outsources to other companies or nations are the highest level of knowledge and skills that are shared across functional units. These competencies are outsourced since they add the most value to the organization with regards to integrating and harmonizing strategic business units.

Non-core Competencies

Mclvor (2000) and Premus & Sanders (2015) state that non-core competencies that are outsourced to other companies or nations as part of supply chain management are peripheral activities. These peripheral activities are outsourced to help enhance the company’s focus on its core competencies in order to enhance its efficiency and effectiveness in manufacturing finished products and achieving overall profitability. According to Mclvor (2000), some non-core competencies that are outsourced by business organizations include cleaning and catering services. These activities are not the highest level of knowledge and skills in the organization, but play critical roles in enhancing operations in the company.

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Pros/Cons of Both

Dissertation on Supply Chain Management Processes Assignment

Premus & Sanders (2015) state that outsourcing core and non-core competencies as part of supply chain management is associated with some advantages and disadvantages. These advantages and disadvantages emerge from the fact that outsourcing has developed to become a major industry trend over the past decade. According to Mohuiddin & Su (2013), the advantage of outsourcing core competencies as part of supply chain management is enhanced organizational performance. Improved performance from outsourcing core competencies is attributable to the fact that it enables the company to transfer work and activities to external providers who are knowledgeable, use innovative technologies, and specialized resources. The use of expertise in these critical business activities in turn enhances the quality or products and/or services generated by the company, which in turn improves overall organizational performance. Heikkila & Cordon (2002) state that outsourcing core competencies helps to lessen operational costs, enhances the speed of production, and promotes organizational flexibility. However, this strategy is linked to some disadvantages including emergence of numerous business risks as the organization does not handle its critical business activities and functions. Secondly, outsourcing core competencies results in exchange of proprietary information, which could in turn result in loss of these core competencies.

Mohuiddin & Su (2013) states that outsourcing non-core competencies enables the company to focus on its critical business activities, which is a major advantage. Through enhancing focus on core competencies, outsourcing non-core competencies in turn enhances organizational performance, reduces costs of operations, and enhances competitive advantage. Similar to outsourcing core competencies, this strategy could result in numerous business risks that could in turn affect an organization’s operations and competitiveness in the market (Heikkila & Cordon, 2002). Such risks could emerge if the outsourcing process results in loss of critical business information relating to core competencies or critical activities.

C. Analysis of Off-Shore Chains

As outsourcing has continued to dominate modern supply chain systems, especially because of rapid technological advancements and globalization, off-shore chains have emerged (Szuster, 2013). Off-shore chains are established as part of supply chain management to help lessen operating costs, enhance the recruitment and retaining of highly-qualified personnel, and promote operations in a less strict environment. Off-shore chains handle different kinds of work for an organization ranging from core competencies to non-core competencies. Some of the critical activities handled by off-shore chains include manufacturing and service delivery while non-core competencies include transportation services. Szuster (2013) states that offshoring in supply chain management is a practice or strategy that increases risks in supply chain processes.

Potential Threats for Customers

Off-shore chains have potential threats for customers as they enhance risks associated with supply chain processes (Szuster, 2013). According to this researcher, off-shore chains could result in manufacture of low-quality products, which is a major threat to customers since they will be unable to access desired products. If the production processes are compromised in the offshore chains, low quality products are manufactured. This in turn compromises the ability of the company to attract and maintain its customers. Schoenherr (2010) contends that offshoring could result in the production of expensive products and/or services. While off-shore chains are established to help reduce operational costs, the company could end up using high pricing strategy to help cover for the costs of off-shore chains. This implies that customers would in turn be required to pay more for their products and services.

Potential Threats for Non-customers and Management

Tate & Ellram (2012) argue that offshoring could generate potential threats to an organization’s management and non-customer/other stakeholders. Based on their evaluation of offshore outsourcing in the service industry, Tate & Ellram (2012) found that offshore outsourcing poses significant threats on formalization, centralization, and complexity. In essence, off-shore chains have been found to negatively impact critical components of organizational formalization, centralization and complexity in relation to production processes. In addition, these researchers contend that offshoring has been found to generate more complex structures in production processes. This in turn generates new demands on non-customers and management in the organization with respect to streamlining operations. Additionally, Tate & Ellram (2012) states that off-shore chains generate difficulties for the management and other organizational stakeholders to remain flexible toward ongoing adaptation and improvement.

Structure of Supply Chain

Vonderembse et al. (2006) state that there are different structures or design of supply chain as different approaches are adopted to establish and maintain relationships among manufacturers, suppliers, distributors and retailers. These researchers postulate that the structure of supply chain is dependent on the type of relationship that exists between these various stakeholders. These researchers further contend that organizational stakeholders consider various factors when determining the structure of the supply chain. One of the major considerations… [END OF PREVIEW] . . . READ MORE

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