ASSIGNMENT: PRODUCTION &

OPERATIONS MANAGEMENT

Submitted to: Sir Fahad Bin Abdullah

Submitted from: Fatima Nadim (21292)
ANSWER#1: WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)?

Supply chain management (SCM) is the broad range of activities required to plan, control and execute a
product's flow, from acquiring raw materials and production through distribution to the final customer,
in the most streamlined and cost-effective way possible.

SCM encompasses the integrated planning and execution of processes required to optimize the flow of
materials, information and financial capital in the areas that broadly include demand planning, sourcing,
production, inventory management and storage, transportation -- or logistics -- and return for excess or
defective products. Both business strategy and specialized software are used in these endeavors to
create a competitive advantage.
Supply chain management is the management of the flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in the
marketplace. SCM represents an effort by suppliers to develop and implement supply chains that are as
efficient and economical as possible. Supply chains cover everything from production to product
development to the information systems needed to direct these undertakings.

ANSWER#2: DISCUSS BREIFLY THE WHEN AND HOW SUPPLY CHAIN GREW UP?

The combination of many other events and developments has brought supply chain management to
where it is today, and it will be the basis for what SCM will become in the future. As logistics and supply
chain professionals prepare for the future, they will face a number of challenges and issues. Most
notably, they will have to deal with continuous upgrades in technology; the growing importance of "big
data" and data analytics in SCM; increasingly widespread uncertainty and the associated need for a
greater focus on risk management; growing government involvement in business (in regard to taxes,
inflation, debt, and infrastructure, for example); and labor shortages at all levels.

Technology improvements have been of tremendous benefit to supply chain professionals. From
sophisticated software and wireless systems to smart phones, ipads, and other devices that seem to be
getting smaller, cheaper, and more mobile all the time, technology has had, and will continue to have, a
significant impact on SCM and its components. Many managerial decisions that could only be made over
a few weeks or a few days in the past must be made in just a few hours or even a few minutes today,
and they may have to be made within seconds in the not-too-distant future. To assist the supply chain
professional in making decisions more quickly, technology will allow both line and staff personnel to
access large amounts of data, quickly analyze that data, and the use that information to determine the
best course of action for a particular circumstance. The concept of quick response will become more
widespread as organizations are able to respond to situations more rapidly.

The increasing availability of large amounts of data will assist supply chain decision-makers to respond
more quickly. For decades, the availability of data has been growing exponentially each year. In 2006,
IBM estimated that by 2010, knowledge would double every 11 hours.1 In 2010, Eric Schmidt, Google's
chief executive officer, was quoted as saying, "Every two days we create as much information as we did
from the dawn of civilization up until 2003."

ANSWER#3: WHAT IS THE IMPACT OF GLOBALIZATION ON SCM?

Globalization has created both opportunities and risks for companies, as the more connected economic
environment has brought more customers and new markets whereas also bought larger extent of
competitors.
Globalization process along with the emerging of new markets for goods and service, new resources and
supplier, and new pools of labor creates opportunities to companies. The more collaborative
environment makes it possible for companies to reduce cost and focusing on these core competencies
to participate more profitably in the global trade.

Accompanied with the opportunities, challenges regard to supply chain also presented with the
globalization. The global marketplace has made supply and demand more volatile and hard to forecast
as there is a greater reliance on different companies spread over great distances. The global network
made the supply chain more complex as the increased number of suppliers, customers and plants
spread throughout the world. This can make it difficult for managers to maintain an adequate level of
control over their operations.
There is also increased competition from low cost products from overseas markets. Expanded market
also means a broader range of competitors; companies devote themselves to explore more efficient
technologies, strategies to provide better quality products, faster delivery service, and lower cost in
order to maintain their comparative advantages in the global competition.
Decreased number of information is another factor that may undermine the global supply chain. With
large number of partners and franchises, decisions are difficult to be made with full information and
therefore brings risk to the supply chain. The uncertainty accompanied with the globalization process,
companies are seeking for new methods and strategies to mitigate the risk and take control over the
uncertainty factors. Have a better understanding of the risks and prepare for an plan to response to the
issues coming out is the way to enhance the ability of companies to stand against the challenges.

ANSWER#4: WHAT IS THE IMPACT OF ENVIORMENTAL SUSTAINIBALITY AND THE “GREEN”

MOVEMENT ON SCM?

The whole idea of a sustainable supply chain is to reduce costs while helping the environment. A Green
Sustainable Supply Chain integrates ecological factors and supply chain management principles to
identify the environmental impact of an organization's supply chain processes. The “green” movement
has created more challenges and benefits to supply chains for businesses of all sizes who deal with
providing products to customers. For you to stay competitive, you may be looking for sustainability in
operations to satisfy customers’ pain points while still bringing in profits to keep your operations
running at full speed. Yet going green has created some interesting challenges to the manufacturing
marketplace and how to operate supply chains without compromising established budgets.
“Going Green” Impacting Supply Chain Best Practices
Luckily, your supply chain can adopt specific best practices and policies that allow for more green
manufacturing operations while lowering operational costs. Some of the top supply chain management
decisions you can make include:
 Selecting the right suppliers with streamlined RFP processes
 Collaborating with suppliers to adopt more green initiatives
 Focusing on key green supply chain objectives that applies to your operations
 Enforcing transparency for greater business compliance
 Selecting and managing suppliers that are willing to accept your company’s sustainability

An objective throughout the green supply chain is crucial for success. For your company to reach
this stage, a versatile and scalable eSourcing and RFP technology can prove beneficial in keeping
costs low as you locate the right suppliers, find out what types of green processes they employ,
and ensure the suppliers meet business compliance standards.
Benefits to a Green Supply Chain:
There are several benefits to having a green supply chain. By collaborating with suppliers, your company
gains more transparency into their processes. You can make instant changes when the supplier no
longer offers the quality products you desire, or engages in risky labor operations or environmental
practices that can cause risks to your company’s reputation. In addition, you improve communication
with suppliers to strength the business relationship. Lastly, you are reducing the carbon footprint for
your manufacturing processes by producing less waste and lowering expenses.

ANSWER#5: WHAT DO YOU THINK ABOUT SCM IF YOU CONSIDER “PAK-CHINA ECONOMIC
CORRIDOR”

Scholars have explored the significance of SCM on the business prospects of small scale and
medium scale firms from various dimensions. Supply chain management processes have direct impact
upon the overall performance of the firm.
These processes also give competitive edge to the organizations because SCM
Implementation means addition of value creating elements in various supply chain processes like
Supply, manufacturing, and distribution processes from raw material extraction, the
Transformation process and end user consumption.
The most common internal factors identified were knowledge, time, technology, leadership,
communication, commitment, customer requirements, production forecast, inventory
management, customer service, transportation, relations with vendors, integration with
manufacturing, purchasing, order processing, and procurement. All the interviewees were found
to have good knowledge on the components that impact the SCM of SME’s.
On the other hand, the external factors found were business operations, business collaborations,
industry, environment, social, cultural, economic, government policies, and political.