Supply Chain Management, Relational Dynamics and Strategic Intelligence for Sustainable Business
Actors in supply network management and role they play in sustainable business practices
Relation between Firms and Support Structures for Innovative Sustainable Practices
The report is aimed at studying, analyzing and understanding the present industry standards of execution of supply chain management using Samsung electronics Ltd. (a multinational technology company)’s supply chain as an example.
Any supply chain has a number of actors who play a crucial role at every step in the supply network. Well distinct role and possibility of every performer goes far in smooth application of the supply network for any business.
Different strategies investors and value creation association etc. at the point when assembled lays a solid substance of the vital thought of any business. The strategic insights assume an essential job for line among policy and business which additionally advises how to go for competition in the focused marketplace by applying business knowledge intelligences.
The level of working and the productive development of any business relies on inner and outer support erections. Additionally, the division of association examines the current market importance, innovative developing challengers and creation or services appraisals.
The principle objective of the report is to understand the key ideas in inventory network, the jobs different performers play in the store network, and genuine task of production network administration in any random business. Likewise it intends to clarify the key help structure for any sustainable business insight to be in front of competition.
The structure of the report is as follows:
Actors in Supply Network Organization and their Role
The management of supply chain is the mixture of different procedure which incorporates producer, dealer, client, transporter and so forthn. Figure 1, demonstrates that store network can be distinctive according to the organisation prerequisites. The combination differs in size and extension, client needs, topographical nearness and item. It is innocuous to express that no two supply chains are really comparable, there may be different role for same participant in each.
Figure 1 Supply chain management model of Samsung Electronics Ltd (samsung.com, 2018)
In Figure 1 above the total supply network of Samsung electronics comprise of suppliers of various parts, the manufacturers or assemblers of final product, the logistics, the venders and the end consumers. The system is complex and it sees how individual key performer assumes an imperative job in finishing the coordination and entire store network circle.
Almost all the supply chains focus on end user demand for planning activities. End user may be a retailer, consumer, or other business entity depending upon if it is a consumer product supply chain or industrial supply chain. For example, a lot of Samsung’s sales come from sale of consumer products (home appliances) and mobile phone handsets in various parts of the world. (Venkateshwar, 2017)
Retailers are middlemen which work as a link between manufacturers and end consumers. Samsung have a huge number of retail outlets and individual retailers selling its products worldwide. Also a good amount of sales come from sales of products on online platforms (own or third party). Retailers provide shelf space, assistance in financial transactions, customer support and also act as a first point in after sales services.
Distributors and wholesalers are also an important link in the supply chain. These are the businesses involved in buying and stocking large quantities of merchandise from manufacturers and then distributing it in small batches throughout the retailer network. They help in building a local network of retailers and distribution/introduction of product at a local scale.
Manufacturers are the entities which transform raw materials in to usable products. It may be done through production from basic raw materials (making of LCD screens from scratch) or assembling of different components sourced from various suppliers (assembling of a smartphone using a number of components supplied by a number of other manufacturers)
Producers are in charge of development stock, arrange and build the requests which impact the plan and activity of the inventory network.
Suppliers produce raw materials or manufacturer individual components for a device. (CSCMP CSCMP, 2014) a number of Samsung subsidiaries, other manufacturing units, small business enterprises are involved in manufacturing components for Samsung products. Samsung works only with Eco Partner-certified suppliers so that the environmental impact can be easily assessed and managed. (samsung.com, 2018)
Relation between Firms and Support Structures for Innovative Sustainable Practices
Value creation, Network sustainability, and financial strategy are the important features for sustainability.
Creating value for consumers in the form of better (design/efficiency or NPD) products, and for investors in the form of increase in the stock price is main aim of any business entity. It ensures smooth incoming of orders/sales and at the same time ensures the availability of investment capital for future operations. (Hillstrom, 2018)
Samsung started as a small trading business in year 1938 and expanded into food processing, insurance cloths, security and trade within 30 years. It started its electronics business in late 1960s; it also has shipbuilding and construction business. Mobile phones, home appliances and semiconductors are the main source of company’s income. It has brought a number of new technologies and products into customer hands and the stocks have been roaring continuously. (Wikipedia, 2018)
System basics are helps in the stream of business inside an association or among various associations. It is vital to obviously characterize the scope and obligations of a person in the business or different provision structures in order to have long term sustainable business practices.
Following table shows scope and responsibilities of different departments in an organization:
|Research and development||
Table 1. Different departments and their roles in a business
Apart from the support structures within the organization, a business entity also need support from external sources, for example a logistic partner will be needed to transport merchandise from one place to other and to deliver direct sales to end consumers. For online help of their merchandise they require a different IT accomplice. Calculated accomplice and IT accomplice go about as an outer system structure for running end to end business. (Reckitt Benckiser Group plc, 2006)
Key Financial administration refers to exact positioning, usage and organization of an association’s monetary resources for achieve its motivations as a business concern and return most outrageous incentive to speculators over the time goes on. Strategic Financial management includes accurately describing an association’s business targets or objectives, individual and evaluating its accessible or potential resources, and devising a plan for using funds and other capital assets to accomplish its objectives. (Investopedia, 2018)
Samsung takes a one of a kind financial strategy to increase sales and improve organization’s image.
Financial strategy of Samsung includes series of strategies that incorporates comprehensive range of organization’s expenses.
This covers defining out financial objectives and goals, recognizing assets, engaging into financial decision making, examining information and following fluctuation among planned and real outcomes and deciding the explanations for the difference. The financial strategy of Samsung rotates around the correct ways to deal with a perfect financial management with long term prospect. (Marketing Slides.2018)
Strategic intelligence comprises of combination of various types of academics which makes collaboration between organisation intelligence, competitive intelligence, and knowledge management to give value‐added data and information toward settling on organizational strategic decisions. (Pellissier, & Kruger, 2011)
Business intelligence (BI) includes the procedures and innovations utilized by undertakings for examination of business data. BI innovations give chronicled, current and predictive perspectives of business operations. (Techtarget, 2017)
Competitive intelligence is the gathering and investigating noteworthy data about competitors and the market to shape a business strategy. Its point is to pick up everything there is to know about the competitive environment outside your business to settle on the best decisions about how to run it. (Investopedia, 2018)
Learning administration is the route toward making, sharing, using and managing the data and information of an association. It refers to a multidisciplinary way to deal with accomplishing organizational targets by making the best operation of information. (Investopedia, 2018)
Actors play an important role in management of supply chain. Operations and profitability of any .business relies on inside and outside help structures. Various business strategies help businesses understand the current ongoing market trends and formulate plans and policies to counter competition run business efficiently.
Strategic intelligence helps gather information about market, competition and manage intellectual property efficiently. It also helps to recognizes changes to be made in the existing policies of an business in order to recover itself in the modest market, increasing profitability sustainably.
- Samsung.com. (2018). Supply Chain | Sustainability | Samsung India. Retrieved from https://www.samsung.com/in/aboutsamsung/sustainability/supply-chain/
- Venkateshwar, k. (2017). Samsung case study. Retrieved from https://www.slideshare.net/KUMARVENKATESHWAR/samsung-case-study-73439489
- CSCMP CSCMP, H. C. (2014, 01 10). informit. Retrieved from informit: http://www.informit.com/articles/article.aspx?p=2166717&seqNum=3
- samsung.com. (2018). Supply Chain | Sustainability | Samsung India. Retrieved from https://www.samsung.com/in/aboutsamsung/sustainability/supply-chain/
- Hillstrom, L. (2018). Value Creation – strategy, organization, definition, school, company, business, and competitiveness. Retrieved from https://www.referenceforbusiness.com/management/Tr-Z/Value-Creation.html
- Wikipedia. (2018). Samsung. Retrieved from https://en.wikipedia.org/wiki/Samsung
- RB. (n.d.). Retrieved from RB: https://www.rb.com/
- Investopedia (2018). Strategic Financial Management. Retrieved from https://www.investopedia.com/terms/s/strategic-financial-management.asp
- René Pellissier, J.‐P. Kruger, (2011) “A study of strategic intelligence as a strategic management tool in the long‐term insurance industry in South Africa”, European Business Review, Vol. 23 Issue: 6, pp.609-631, https://doi.org/10.1108/09555341111175435