Introduction
With the increasing levels of competition in the world, organizations have not only been compelled to reduce their production costs to cope with the market demands and restructure their organizations systems to enhance offering of quality services but also to create and effectively manage their supply chain networks. Commonly known as SCM systems, supply chain management structures deal with the integration of frequent activities connected to the transformation and flow of goods from raw materials to the final product, from the producer up to the final consumer. With the advancements in technology, organizations have moved an extra mile from the basic development of these systems to their integration with other business practices. In fact, the effectiveness of SCMs is not only resourceful in enhancing the productivity of an organization but also facilitating the processes involved in the production and transfer of the products in the supply chain.
Similar to any other system, constant updates are essential in the optimization of the software. Developing a supply chain that is responsive to the changing trends in the market demands is imperative as it minimizes the chances of system entropy. Along with that, this advancement benefits new developments in the market making it possible for the corporate establishment to oversee its inventory in accordance with the demand and supply trends in the market.
This paper is aimed at explaining the role of supply chain management systems in the development of competition among organizations. Additionally, it describes the impacts of these systems in improving the efficiency of operations among corporate establishments. The discussion of the findings from the research conducted will be presented in determining effective responses to the research questions posed.
Research Process
The primary sources of information for this exercise were peer-reviewed journals. To ensure that the credibility of these materials was unquestionable, the materials were accessed from reliable libraries. Precisely, the ACM Digital Library and Google Scholar helped to generate nearly 70 percent of the content used in the research. To complement the amount of information used in the generation of a rationale to the research questions developed, other online sources were used. These resources included technological websites with relevant content in relation to the current research. After the collection of these materials, analysis was conducted and comparison of the information obtained from each source followed. This initiative ensured that the credibility of the facts given in one material had some connection to another source. Conflicting facts were excluded from the research to enhance the accuracy of the final report.
Research Questions
The following questions were used in determining the scope of the research:
- Do supply chain management systems improve the efficiency of operations?
- Do supply chain management systems enhance competition among corporate sectors?
Scope of the Research
To determine the role played by supply management systems, there was a need for the development of research parameters to ensure that every important bit of information was covered. As a result, the research was to encompass the following:
The role of SCMs in:
- Communication
- Top management commitment
- Data security
- Hardware and software reliability
- Training and education
Along with these considerations, the processes involved in the management practice were to be evaluated to establish its impacts on these fields. They include:
- Distribution of networks;
- Information and inventory management;
- The components facilitating the supply management process;
- Enhancement in overall planning.
Finally, the benefits of the supply management systems were discussed in accordance with the demands of the research question.
Roles of the Supply Chain Management Systems
Data Security
Supply chain management systems ensure that data integrity is maintained. This is largely attributed to the fact that the roles of the people involved in the supply chain are spelt out and only few people have access to particular information. According to Sabbaghi, organizations that have competent supply chain management systems are lesser likely to suffer from sabotage because of leaked information. Owing to the fact that information insecurity can affect the productivity of a firm, supply chain management systems ensure that higher levels of data security are maintained. In fact, most of the operations are handled by a computer system and the system managers handle the output. As a result, there is a form of security created since maintenance of confidentiality is easily manageable because few people have access to the primary output. Consequently, supply chain management systems improve the efficiency of operations within an organization by fostering data security...
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