Allison Luck
Week 1 Discussion
COLLAPSE
Based on this week’s reading, supply ch
Allison Luck
Week 1 Discussion
COLLAPSE
Based on this week’s reading, supply chain management originated in the 1960s or 1970s, but really started to evolve within the United States about 30 years ago. According to Wisner et al (2019), “Thirty years ago, many large firms were vertically integrated…Thus, a collaborative approach to buying, making, and distributing goods and services has become the best way to for firms to stay successful- and it is central to the practice of supply chain management” (p. 5). Supply chain management is essential for businesses in that it makes the process of buying and shipping a lot smoother and easier. This helps suppliers gain the respect of customers involved with a supply chain. According to Wisner et al (2019), “Product quality [is] considered the most important when evaluating strategic suppliers, followed by on-time delivery, service/support, and finally, price” (p. 16). When suppliers ensure their business meets all these standards, they ensure they will have many returning customers. They are also showcasing these benefits to customers and making the buying and shipping of products a lot simpler. Because of smooth supply chain management practices, the company and the customer both have a satisfying experience.
One of the ways in which supply chain management changed during the pandemic is the method of shipping products and their location. One case is related to the healthcare industry. According to Alicke et al (2021), “Healthcare players stand out as resilience leaders. They applied the broadest range of measures, with 60 percent of healthcare respondents saying they had regionalized their supply chains and 33 percent having moved production closer to end markets. By contrast, only 22 percent of automotive, aerospace, and defense players had regionalized production, even though more than three-quarters of them prioritized this approach in their answers to the 2020 survey” (para. 5). By moving production closer to their home base, they were able to continue shipping their products out and making a profit while respecting pandemic guidelines. Additionally, supply chain management also changed due to the overall challenges of the pandemic. According to Helper and Soltas (2021), “Entire industries that shrank dramatically during the pandemic, such as the hotel and restaurant sectors, are now trying to reopen. Some businesses report that they have been unable to hire quickly enough to keep pace with their rising need for workers, leading to an all-time record 8.3 million job openings in April. Others do not have enough of their products in inventory to avoid running out of stock. The situation has been especially difficult for businesses with complex supply chains, as their production is vulnerable to disruption due to shortages of inputs from other businesses” (para. 2). With the challenge of more customers than inventory or workers, businesses have had to get creative with advertising open positions and attracting more workers to get the job done. They have also had to rely on outside vendors more in order to obtain enough of their product on time. Although supply chains come with many challenges, it is fascinating to see how smoothly things come together to create a great outcome.
References
Alicke, K., Barriball, E., & Trautwein, V. (2021, November 23). How covid-19 is reshaping supply chains. McKinsey & Company. https://www.mckinsey.com/capabilities/operations/our-insights/how-covid-19-is-reshaping-supply-chains
Helper, S., & Soltas, E. (2021, June 17). Why the pandemic has disrupted supply chains. The White House. https://www.whitehouse.gov/cea/written-materials/2021/06/17/why-the-pandemic-has-disrupted-supply-chains/
Wisner, J. D., Leong, G. K., & Tan, K.-C. (2019). Principles of Supply Chain Management: A Balanced Approach (5th ed.). Nelson Education Ltd.