Supply Chain Management
Introduction
This paper identifies an existing supply chain management process within an organization. It describes the flow of materials to the organization, the organization's function, and the customer base that organization serves. The supply chain practice will be compared with other supply chain process. An analysis will be provided based on research and cost-benefit and the recommended changes. The paper has taken a supply chain process exists in the Minneapolis based retail giant Target. Target has 1500 stores, 25 regional distribution centers and 3 import warehouses.
Supply Chain Process
The idea of supply chain is the application of total systems approach in managing the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customers. Inventory turnover and weeks of supply are two common measures to evaluate the supply chain efficiency. Inventory turnover is measured as the ratio between the cost of goods sold and the average aggregate inventory value, while weeks of supply is a measure of how many weeks' worth of inventory is in the system at a particular point in time. A firm considers inventory an investment as it ties up funds that could be used for other purposes, and a firm may have to borrow money to finance the inventory investment (Chase, Jacobs, & Nicholas, 2006).
The global supply chain management process covers aspects of the business that includes sourcing, order fulfillment, offshore procurement, distribution, warehousing, and inventory management. Managing the global supply chain effectively increases competitive advantage, market share and profits. Target's supply chain is very complex and ...