scm 101
TRANSCRIPT
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Running Head: SUPPLY CHAIN MANAGEMENT
[Importance of Supply Chain Management for Global Organizations]
[Name of the Writer]
[Name of the Institution]
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Table of ContentsSupply Chain Management ............................................................................................................. 3
Ethical Supply Chain Management ................................................................................................ 3
Purpose of the Code of Ethics for managing the supply chain ....................................................... 3
Personal integrity and professionalism ........................................................................................... 4
Accountability and transparency ..................................................................................................... 5
Compliance and continuous improvement...................................................................................... 5
Debate regarding ethical supply chain management ...................................................................... 5
Longer delivery times and logistics complex ................................................................................. 6
Lack of communication and trust ................................................................................................... 6
Compare and contrast researchers views and opinions concerned with the issue of ethics andsupply chain management ............................................................................................................... 7
Conclusion .................................................................................................................................... 11
Major Supply chain issues: A example of car manufacturing ...................................................... 12
Issues addressed by the Smart Concept and Logistics at MCC .................................................... 13
Postponement and Extended enterprise ........................................................................................ 15
Quality Assurance in the supply chain through Co-operation with suppliers .............................. 18
Disaster Management through Effective Supply chain ................................................................ 19
Recommendations ......................................................................................................................... 25
References ..................................................................................................................................... 26
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Supply Chain Management
Ethical Supply Chain Management
As we have been stressing throughout this text, ethical decisions are critical to the long-
term success of any organization. However, the supply chain is particularly prone to slippage, as
the opportunities to behave unethically are enormous (Carterm 2002, 37). With a sales staff
eager to sell, and purchasing agents who spend huge amounts, the temptation to unethical
behavior is considerable. Many sellers end up making friends with their customers, making
favors, taking them to lunch or giving them small (or big) gifts.
Define when a gift of friendship becomes a bribe is a challenge. Many companies have
rules and strict codes of conduct that limit what is considered acceptable. Being aware of these
problems, the Institute for Supply Management has developed principles and standards that can
be used as guidelines for ethical behavior (Halldorsson, 2007, 284). Ethical supply chain is
viable because ethical supply chain sets the basic global principles to condition the behavior of
the broader public sector, their suppliers, their advisors and others involved in activities related
to chain supply (Oliver, 2009, 246).
Purpose of the Code of Ethics for managing the supply chain
Ethics in supply chain management is viable because this is a type of activity that is need
to been handled with care and efficiently because if these principles would not be followed it
could have drastic impact on the organizations and their reputation. The Code does not replace
the ethical codes in place in some organizations, but rather just add the codes by providing
specific standards of practice applicable to the supply chain (Masters, 2008, 78).
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Some factors are important to make a supply chain activity viable these factors are (Carter,
2002a, 145):
Personal integrity and professionalism
All persons involved in purchases or other activities related to the supply chain must act
with integrity and professionalism and show their involvement. Honesty, diligence and
reasonable care must be integral to all activities of the supply chain, both within the broader
public sector organizations, suppliers and other stakeholders among themselves. All must show
respect for others and the environment.
Confidential information must be protected. All concerned must refrain from engaging in
any activity that could create or appear to create a conflict of interest, such as accepting gifts or
favors, giving preferential treatment to certain public or press suppliers and products (Movahedi,
2009, 75). There might be a question from where to begin but these few elaborative prominent
points will provide an overview of how it should be done.
1. Make a commitment- Actions must affirm words and dedication towards thefinancial maximization keeping in mind the ethical perspective.
2. Assess where you standthoroughly assess where organizations stand and thenexecute strategies accordingly to tackle it.
3. Decide and plan where you want togo - Based on assessment of risks andopportunities, a strategy and action plan can be developed. Targets help focus
efforts and also provide a benchmark for measuring success.
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4. Get efficient- Looking at your life or business can help in other ways byincreasing the efficiency of resource use ultimately improving overall
performance and reputation.
Accountability and transparency
Activities related to the supply chain should be conducted openly and be based on
responsible management. Thus, contracting and procurement should be conducted in a fair and
transparent and seek the optimization of federal funds. All persons involved in these activities
must ensure the responsible use, skilled and effective public sector resources (Worrell, 2009,
277).
Compliance and continuous improvement
Those involved in procurement or pursuing other activities related to the supply chain
must comply with this Code of Ethics and the laws of Canada and Ontario. They must
continually work to improve policies and procedures relating to the supply chain, their skills and
knowledge related to supply chain and for disseminating leading practices (Woodhouse, 2010,
23).
Debate regarding ethical supply chain management
Ethics in supply chain management is very necessary and it can be used as long term
strategy for generating maximum profits in the industry. According to Mentzer, ethical supply
chain management is viable, you just need to focus on the below mentioned tips. ethical supply
chain management reduced risks stemming from miscommunication, cultural differences, and
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logistical challenges while improving accountability and quality assurance in the supply chain,
companies investing in any country should consider taking one or more of the following steps
(Mentzer, 2010, 25).
The seasonality of some products and markets means that manufacturers take requests
large amounts over a very short time and therefore need much capacity production and
availability of labor, while the demand during the rest of the year lower, or perhaps there is less
demand for the buyer, so there is no need same level of capacity and personnel.
Economic impacts on companies and homes have drawn attention to the shortage of
natural resources and possible methods cope with the consequences. The vulnerability of the
safety chain of supply is major theme that is emerging in the running chains and involves greater
need information on the economic situation of suppliers (Leopold, 2000, 39).
Longer delivery times and logistics complex
The production is increasingly located abroad, providers are more dispersed and in
distinct social and cultural contexts, which leads to more complex logistics. Another growing
trend is to pressure suppliers to occur faster and to accept an order confirmation as close as
possible delivery day, so the buyer can make changes in quantity and design art hour (Kouvelis,
2009, 449).
Lack of communication and trust
The lack of communication and exchange of information on the production process can
lead a lack of trust between buyer and supplier, with the possible consequences of failures
planning and production delays. If there are communication failures, it is difficult to specify
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product and design changes already decided. The result in the whole process can be delayed
delivery or failure in the final product. Moreover, in some cultures, for example in China,
considered impolite to refuse requests from clients, but still an order for buyer is a fact, the
reality may be impossible to meet.
By contrast, the supply can offer opportunities for global remote producers in developing
countries. The term "ethical supply chain management" refers to the creation of equal conditions
for suppliers. Corruption and bribery Corruption is an issue always present, although more
common in some places than others. Because the supply chains are increasingly complex,
include more players and more international control and transparency are difficult.
Compare and contrast researchers views and opinions concerned with the issue of eth ics and
supply chain management
The ethical problems, that emerges in interaction with business partners and competition
with other businesses can also be considered as, external stake-holder relations issues (Herkert,
2010, 403). Both business partners and competitors can be accounted for as stakeholder
according to the definition of a stakeholder as anyone who affects or is affected by the
corporation.
There are many ethical problems related to suppliers, competitors, and other businesses
with which the corporation interacts. Relations between businesses are becoming increasingly
important in the context of globalization and network economy (Harris, 2009, 138).
There has been a penchant to regard business competition as dependent on economics and not as
a subject for ethical analysis; however, as has been previously discussed, there are ethics of
competition, which corporations should follow in interaction with each other. Moreover, in the
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global environment, suppliers may sometimes be considered as equivalent to employees. A
corporation may have increased responsibility towards its suppliers, who are very dependent on
its treatment of them.
In the competitive environment of business-to-business relations, there are also a great
many ethical questions related to problems of trust in dealing with trading partners and in
formulating contracts. In international business, the question of bribery and gift giving is also
important and emerges not only in relation to governments, but also in business-to-business
situations (Halldorsson, 2009, 89). There may, furthermore, be ethics of negotiation with
possible business partners and suppliers which sets a limit to workable aggressiveness and
deceptive practices (Winner, 2011, 53).
Certainly, there are many ways in which a corporation can hurt and violate the rights of
suppliers and competitors, but there is also a great deal of mutual dependence between the
corporation and the other corporations in the business environment. Some complain about an
environment of negative dependence on competitors, in the way that businesses in mutual
competition shape to be the social field of their industry and its developments and innovations,
but it is often possible to learn a lot about business developments by looking at the actions of
competitors (Halldorsson, 2007, 284).
The same dialectics between competition and dependence may to a lesser extent be the
case with supplier relations, where a different dependency may exist. Sometimes a corporation
cannot live without its suppliers, and they totally determine its existence, for example, in the case
of suppliers of very sophisticated software for televisions or computers.
In other cases, it may be that the corporation is so strong, and there may be so many
suppliers on the market, that the corporation can do anything it wants with suppliers. This raises
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provocative questions about multinational companies and their relations to some suppliers in
developing countries. In both cases, corporations have to respect basic ethical principles and
comply with the laws and values of competition and values-driven management (Fiksel, 2009,
289).
Surely corporations are not isolated entities but are mutually dependant on other
companies in advanced network economies. The general ambience of ethics in different
industries is very significant for the integration of values driven management. It is routinely
argued that a corporation cannot, and will not, establish an ethics program because it is not
common in the industry and, further, that the expense of an ethics program will raise overall
costs and have a determinant influence of the corporations competitiveness.
Consequently in order to succeed with ethics policies. It is necessary to convince all
corporations in the industry to make an effort to comply with ethics and advance ethics
programs. This was the case when the United States defense industry, pushed by the government,
formulated its business ethics program and codes of compliance in 1986 (Davis, 2010, 379).
Ethic issues related to suppliers concern questions of loyalty and partnership.
These issues are particularly complicated when people from different countries
collaborate in a global economy. Issues of correct behavior, may complicate different cultural
norms, as well as, different conceptions of a contract (Carter, 2009, 191). The power differentials
that exist between business partners, for instance in meetings between Western and northwestern
partners, or big and small firms, may define the pressure of ethical behavior.
Large European or American firms have quite extensive responsibilities towards their
eventual suppliers from imperfect and small third world countries (Roberts, 2009, 159). Powerful
corporations can use their force in regard to self-interested profit maximization in order to
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dominate suppliers in a negative way that has a damaging impact on their mutual relationship.
Suppliers can play with their loyalty in order to deal with the best buyer, hut they can also go
into stable business relations with one business partner, which may benefit both corporations
(Carter, 2010b, 37).
Loyalty may likewise be broken because of better business opportunities with different
suppliers. The ethics of business negotiations between different corporations presents
comparable issues. As Albert Carr has argued, there is a close link between the ethics of business
competition and negotiation, but there is a wider degree of latitude to the game of negotiation
(Carter, 2010a, 180). Most would agree that (here is nothing wrong with being rude, as long as
one plays by the rules of the game.
However, there are also practices of negotiation that are at the borderline. What about
lying, deception, misleading nondisclosure, exploitation, or simply running away from foregoing
agreements? How many of such practices arc part of rules of the game? And what about the
cultural differences in concepts of negotiation, such as cases where one party may view the
aggressive style of American negotiation as a war? Carroll stated that with a bias toward the
basic ethical principles of autonomy, dignity, integrity and vulnerability, it is possible to
conceive of negotiation as consensual openness searching for solutions that will be an advantage
for all (Carroll, 2011, 39).
As economists emphasize, competition is necessary for business innovation, but it can
also be destructive insofar as businesses use forceful measures to obtain market share or destroy
other competitors. In addition to the issue of aggressive competition, the ethics of oligarchic and
monopolistic practices are of concern in free markets. State intervention in such practices firms
with dominant market share is occurring in many countries in order to protect the ethics of free
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markets. In the context of liberalization and globalization of international markets, this issue of
the legal and ethical limitations of market behavior is becoming more important (Carroll, 2009,
497).
Corporations may not only have to be aware of their own relations with competitors and
suppliers, but also to investigate the ethical dimensions of their supply chain. Ethical supply
chain management involves investigating the ethical issues pertaining to all the members of the
business network. In relation to developing countries, the firm would probably have to deal with
questionable working practices of business partners in these countries (Brumsen, 2010, 378). A
widespread practice of supply chain ethics management is represented by the fair trade
movement, which was discussed previously. To provide proof of supply chain ethics firms, are
frequently requested to give a transparent description of the production history of their goods
(Beamon, 2008, 20).
Conclusion
Today consumers and suppliers are increasingly concerned about the SECH (social,
ethical, cultural and health) of the product. Everyone today is focusing on ethics in business
because it is the only factor that contributes towards the success and trust in the organization.
Research has indicated that today organizations are meeting the challenges without creating
waste, loosing energy or damaging the communities touch.
From the preceding discussion, it can be concluded that ethical supply chain management
is viable. By comparing and contrasting researchers views and opinions about the issue of ethics
and supply chain management, we come to know that they should ensure quality control that
companies must build more accountable, transparent, and ethically managed supply chains.
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Corporations may not only have to be aware of their own relations with competitors and
suppliers, but also to investigate the ethical dimensions of their supply chain.
Ethical supply chain management involves investigating the ethical issues pertaining to all the
members of the business network. In relation to developing countries, the firm would probably
have to deal with questionable working practices of business partners in these countries.
Major Supply chain issues: A example of car manufacturing
Supply chain is recognized as the major opportunity for business improvement for almost
all the industrial sectors. The sector of automotive is the furthermost advanced in its supply chain
management but there are some major issues which are being faced by the conventional volume
car manufacturers. If the supply chain is managed effectively by the automotive sector than it can
bring substantial outcomes and the benefits would continue.
The needs of the customers should be met reliably, quickly and consistently on high
service levels. But this was not being done by the conventional volume car manufacturers and
they were facing problems in making their customers satisfied. The main issue is to keep up the
quick and rapid pace of technological advancements. Growth and change is needed to make a
place in saturated market. While keeping costs level under control, the quality and diversity is
difficult to achieve.
The marketing strategies are old and the companies do not focus on innovative ideas.
Many industries have just started to recognize the importance of supply chains, and are not able
to make progress. The demand of the customers could not be met by such industries. They face
ultimate issues of cost effective processes and in providing compelling value to the customer.
The conventional industries are not able to connect extensively with suppliers and customers.
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They lack continuous improvement required in saturated markets. The strategies built are not up
to date and does not contain such features which makes the product different from others.
Flexibility is absent. People, processes and systems are not adaptive and innovative.
Issues addressed by the Smart Concept and Logistics at MCC
The supply chain issues which are conventional for car manufacturers are addressed by
Smart cars. The set-up of the Smart has a number of apparent and obvious benefits.
Variety of the product can be supplied to the customers without additional costs, this is not easy
to handle. The issue which is being faced in the market is addressed by Smart Cars and is able to
create a strong position in the saturated market.
The idea of modular creation and rearrangement permits cost efficient, diversity, the
harmony of modules and the general nature of manufacturing processes allows fast cycle times
and a small level of stock. External integration is strong. The involvement and participation of
dealers and suppliers is high.
This can be done due to the large share of value added they create and the input that they
have in product and process development. Fast cycle times interpret into squat lead times while
postponement and modular production allows for a dialogue with customers and enable them to
deal greatly with the conventional issues.
Marketing strategies are infamous and creates hype. Marketing concepts challenges the
conventional car marketing by establishing new channels which includes internet sites, retail
formats and customer involvement in designing and color scheming. Innovative marketing
strategies made them outclass and strong enough to capture the market.
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In addition to these, the car fits within a mobility concept for urban lifestyle. The
included deal with Rent-a-car Company for abridged rental fees for hiring a smart car in foreign
cities made a mobility concept for urban movement. The company also focuses on the latest
issues of global warming and thus attracting the customers.
Smart car is being made environmental friendly and the parts are recyclable which made
it different. The engine is fuel efficient, thus reducing the effect of carbon emission and cost on
the fuel. Minimum product complexity with product variation is the key idea. Customization is
providing longer lifetime to the car. Making the car different from other small cars by
introducing latest technology, makes the car a big success. The factor of differentiation is being
focused by MCC.
The innovative little car is destined to be unlike any other car currently on the road. The
public were intrigued by both the concept and the cars appearance but other carmakers were
much more interested in the MCCS manufacturing systems. Smart Car could be built in only
seven and a half hours, some two and a half hours less than the time taken to build a car by the
industrys leading performers. The difference in performance is due to the fact that MCC is a
very different kind of Car Company with a radically different approach to vehicle development
and manufacturing.
The cars were to be produced in a region with no previous history of automotive
manufacturing, at a single site factory complex in eastern France. At the heart of the complex is a
large cruciform building housing the main assembly line, radiating off each arm of the cruciform
are a number of smaller structures, containing one or another time, via one of five European
regional distribution centers. To retain maximum flexibility, some elements of product
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customization will take place at the distribution centre, where stocks of easily interchangeable
modules and body parts will be held, so that features can be changed or added as required.
Likewise, the modular construction of the vehicles means that they can easily be
upgraded or reconfigured at any point during the lifetime of the car by simply replacing easily
detachable sub assemblies or body parts. This changes the nature of the product itself from a
fixed consumer durable to a much more flexible, renewable product, with associated benefits in
terms of reverse logistics and recycling.
In practice the Smart Car and the organization that builds it represent a curious blend of
out-sourcing and reintegration. MCC has secured the expertise and full commitment of leading
manufacturing specialists and service providers, while spreading the investment and financial
risks associated with this ground-breaking project.
If the public do take to the little car, then despite a long set-back when the prototype
failed a crucial high-speed stability test.4 Smart Cars makers could still recoup their $1bn
investment, as originally planned, during the cars first five to six year production cycles If this is
so then Smart Car could be set to redefine the processes of car manufacturing and ownership.
Postponement and Extended enterprise
The cars are mainly built to customer orders. Centers of Smart do not have cars in stock
and in the situation when the car is needed; a customized car is being made. The car is made on
the specifications provided by the customers. Thus postponement which is a business strategy
that maximizes possible benefit is applied at MCC through customizing the product to clients
needs. The risk is being delayed and further investment in product to produce stock is saved.
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One of the distinguishing characteristics of a supply chain at MCC is that the final
product or offer is not created until the last possible moment. The idea is that maximum
flexibility is achieved. The challenge is to delay the final configuration as long as possible and
hence reduce the risk.
To achieve this specification is being offered. Can the product be modularized, can it be
designed so that localization can be performed at a later stage? Hewlett Packard has made the
idea of design for localization a fundamental element of their product development philosophy.
Often the final assembly or finishing of the product may be performed by another partner in the
supply chain. MCC as the logistics service providers is now acting as value-added partners in an
extended, often global supply chain.
Whilst the unit costs of manufacturing under a postponement strategy may he higher than
under the traditional mass production model, the overall cost benefit will often be considerable
as inventory holding costs fall, obsolescence reduces and customer service improves. In many
ways the concept of postponement is making redundant the conventional wisdom of the
economies of scale.
The system at MCC is practicing outsourcing and differs from traditional supply chains.
The coordination of internal logistics, painting the body of the car and pressing the body parts
are not performed by MCC and thus practicing extend enterprise.
The suppliers are not just participating in final assembly of the car but are also involved
in development of the product. Smart sourcing in MCC enables the company to meet the
changing needs of the market. The approach brings trusting relationships and a positive growth.
Postponement enables the company to integrate as the customers are giving specifications
and then the cars are being made. Outsourcing that is extended enterprise permit the company to
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integrate in a great way as the efficiency increases. The plants which are being outsourced permit
the company to deliver large number of goods at delivery points, while using less number of
transports.
The integrated suppliers can also supply their finished goods directly to the point.
MCC has single sources for all major suppliers. About seventy percent of the material that
reaches the assembly line is produced by system suppliers. The suppliers not only manufacture
and deliver but design it as well. Transparency in the supply chain increases as the complications
incurred by the host of non-interacting suppliers can be reduced.
Manufacturing process starts with an outsourced company assembling the body and then
providing the finished body to the next partner. Then the body is being painted. Every
outsourced company knows what to do and they are master of the particular work they perform.
This can be seen from the prospect of specialization. Information flow becomes easy as the
hierarchy of the system is defined.
Particular function is performed at a particular step and information is kept flowing.
MCC has recognized that the key to success in supply chain management is the information
system. However, there is a dimension to information that enables supply and demand to be
matched in multiple markets, often with tailored products, in ever-shorter time-frames.
This extension of the information system beyond the classical dimensions of simple
planning and control enables time and space to be collapsed through the ability to link the
customer directly to the supplier and for the supplier to react, sometimes in real-time, to changes
in the market.
Rayport and Sviok1a have coined the term market space to describe the new world of
electronic commerce, internets and virtual supply chains. In the market space, customer demands
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can be identified as it occurs and through CAD/CAM and flexible manufacturing products
created in minimal batch sizes. Equa1ly networks of specialist suppliers are joined together to
create innovative yet cost-effective solutions.
The way that Smart cars are now designed and assemble, would not be possible without
the use of global information networks that link one end of the value chain to the other. The
Internet has perhaps provided one of the biggest breakthroughs of the late twentieth century
when its potential impact upon supply chain management is considered.
The Internet provides a perfect vehicle for the establishment of the virtual supply chain.
Not only does it enable vast global markets to be accessed at minimal cost and allow customers
to reduce dramatically search time and transaction costs but it also enables MCC in a supply
chain to share information with each other in a highly cost effective way.
These extranets as they have organizations in a supply chain to share information with
each other in a highly cost-effective way. These extranets as they have come to be termed are
revolutionizing supply chain management. Organizations with quite different internal
information systems can now access data from customers on sales or product usage and can use
that information to manage replenishment and to alert their suppliers of forthcoming
requirements.
Quality Assurance in the supply chain through Co-operation with suppliers
The suppliers also monitor the successes and failures of MCC. By making the suppliers
analyze the need of quality, it can be assured. Communication between the suppliers and the
manufacturers should be effective enough so that misunderstandings can be avoided. To ease
communication and the swap of ideas in the middle of staff and partners, a central area of the
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plant is considered as a meeting room. Its function as marketplace is reinforced by its use for
open discussion of problems and for quality management and quality improvement meetings.
The evaluation of the processes is being done automatically and is displayed at the
market place. Actions include assembly line stoppage times, delivery performance, product
reclamation and scrap, productivity targets and trends, as well as qualifications of teams or
sections along the line.
The model which is based on partnership is being practiced. The carmaker bears overall
responsibility and is the module system integrator, process manager and manufacturer. The
partners also share a substantial quantity of responsibility. The advantage of this modern system
is to form co-operation, which enables the partners to contribute to the success and supports in
the organizational success.
Disaster Management through Effective Supply chain
Logistics comes under supply chain management. Logistics is divided into inbound and
outbound logistics. Inbound logistics deals with internal transportation of firms such as moving
raw materials from supplier to manufacturer. Outbound logistics deals with storage of data in
warehouses and the distribution of products. Logistics is the professional key element of
successful disaster management. It is a support service for relief operations in disaster and
ongoing programs of the International Federation of Red Cross and Red Crescent. The basic task
of the logistics function is to provide appropriate goods and services, under appropriate
conditions, the quantity required and in the places and the time needed. (Ketchen & Hult, 2006,
pp. 573-580)
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In the humanitarian field, logistics refers to the efficient and effective form of emergency
relief from its origin to the beneficiaries. In a humanitarian context, the coordinated management
of the supply chain to an effective response and optimal use of scarce resources are becoming
crucial. It save lives and reduce the effects of disease due to inhumane living conditions.
Logistics activities, then, must be managed from a global perspective that considers the
full term of the supply-manufacturing process, delivery, greater exchange of information, more
involvement of all companies, sharing responsibilities, and with the active participation of each a
partner in decision-making and in addressing all the problems that arise (Ireland & Crum, 2005,
pp.123). This means, changing the fragmented and by function, into a horizontal and processes.
Positioning the supply chain and logistics within the establishments, it is possible to recognize
the advantages that the company perceives as the product is delivered at the time, place and
appropriate state, meeting the expectations of partners chain and customer (Makadok, 2001, pp.
387).
To achieve the objectives of better performance in the competitive environment,
companies should manage supply chain as it involves several processes or activities (Kevin,
2003, pp. 52). These activities include the procurement, planning, compliance with all relevant
orders, emergency orders by the process on analysis of stocks, transfer and release of products,
management and receipt of inventory, collateral management, monitoring of possible failures
that may have components, invoicing, receipting and processing payments (Naim, Childerhouse,
Disney & Towill, 2002, pp. 135).
If we dig a little in the supply chain, distribution systems usually work with the
management of the supply chain as the product is first passed through a small warehouse or store
that is located in the business to be transferred (Hoopes, Madsen & Walker, 2003, pp. 889). Then
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the product is moved to a regional warehouse where the product will be stored until it is sent to
storage for businesses that marketed it. In order to offer more specific concept, managing the
supply chain is responsible for carrying out the planning, organization and control of all
activities involving the supply chain (Chris, Harrity & Vitasek, 2005, pp.20).
The companies that use SCM include Silicon Graphics, IBM, soft power and the German
software titan SAP AG. According to a study conducted in UK, Ovum Associates has increased
sales of SCM tools since 1995 to an average of 50 percent per year. In 1999, it won the global
market for configuration management and "CM" tools and services, an increase of about $ 1.5
billion. The fact that users of these SCM are already in first tests and have successfully applied it
which leads to sustained growth.
There are numerous strategies and processes that have been recommended for
management is fragmented and complex characteristics of the tourist destinations, including
planning, cooperation and partnership. In the Caribbean, it is noted that the multifaceted nature
of the tourism industry of tourism ministries and agencies at the national level to address the
marketing and promotion rather than product development in general. This focus will not be
optimal, and "new and innovative ways should be designed for the tourism product in your
hand". It is described that the sub-sector, consisting of producers (e.g., airlines, service providers,
on-site), distributors (e.g. tour operators), intermediaries (such as financial service providers) and
consumers (passengers / tourists).
At the producer level, also believes that because of the complexity and the development
of marketing campaigns, they will be able to change the direction of the value creation of the
product development and integration of these two functions. Although the integration of
marketing and planning at the regional and local level is not discussed in detail, Pun said that the
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cooperation of public and private sector cooperation is crucial to the success of building a
dynamic private sector in tourism Caribbean. Development of this new measure requires regional
cooperation and development of new institutions.
This problem is evident when one examines the role and functions of tourism
organizations, which are mainly engaged in marketing and promotion of tourist destinations.
Review of tourism organizations in several developed countries, as provided on tourism
organizations, shows that most travel agencies do not usually participate in the planning aspect
of directions, with some exceptions. For example, the Department of Tourism New Zealand, one
of the first national tourism organizations (NTOs), traces its roots back to 1901.
Its activities prior to 1984 include the direct management and development of tourist
zones, performing an extensive tour of the operating divisions and overseas sales and
promotions, however, since 1984, the department has been deprived of their business operations
and is currently focused on assisting the private sector develop and market New Zealand as a
tourist destination in the framework of the objectives of the government. ROC is in connection
with its important role in tourist destinations.
Sustainability has been recognized by most members of the international scientific
community, and increasingly accepted part of society, as the development model which should
underpin the management of destinations tourist. However, the process of awareness and
decision making regarding practical implications stemming from it has not been an easy road,
facing often with conflicting positions and controversial debates in which warns that good
intentions do not always found space policy to be real effective. This approach has been
insufficiently incorporated into the development models implanted on the coastal tourism,
expressed clearly problematic destinations traditional tourist sun and beach. New alternatives for
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these tourist areas have been made and taken to roads made on the basis of the principles of
planning strategic space tourist, reorienting towards its consolidation as destinations Sun and
Beach Resorts Plus. It is possible therefore, to assume the best and corroborated management
practices of sustainable tourism development with critical approach and adapt to reality of
coastal and inland areas of the Cuban archipelago.
Derived from that statement is timely to reflect on how to structure strategic planning for
coastal destinations to project management to local tourist a new scenario of sustainability? The
scientific concern behind the selection of issue of finding geospatial management practices
incompatible with fitness local functional space, which creates real adverse impacts potential. In
that sense, it is necessary to design a strategic plan to guide the tourism implementation
alternatives, therefore the high levels sensitivity of the receptive space to new development
projects.
To cope with the processes of local and regional development are used to local politics
and management of tourist areas comprising different fashion planning, as problems to be
solved, objectives and actors participants, among other determining factors.
The term strategy is derived from the military, as part of war relations between nations
and communities. Management theory adapted the term to competitive business situations
between firms in terms of economic, technological or managerial dimensions. The meaning of
strategy in the organizational context involves an amalgam of decisions, characterized by unique
features, aimed at reaching the goals of the organization. Clearly the desire to succeed in
business and avoid failure requires formulation of strategies that determine exactly what the
organization wants to achieve and what means are required to achieve these goals. It should be
noted that in corporate strategy, not unlike military strategy, the actors may choose to cooperate
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rather than to be involved in head-on conflict. The literature offers numerous definitions of
organizational strategy. It appears that common to all definitions is the realization that strategy
involves significant decisions that can be detrimental to the future of the organizations.
Additionally, these decisions always involve resource allocations and cannot be changed
immediately or in the short term.
As it emerges from the research, a more detailed definition of strategy includes the design
and formulation of the goals and objectives of the entire organization, allocation of the resources
needed to achieve these goals and the organizational processes dealing with the implementation
of the decisions. A successful strategy is one that enhances the value of the organization in the
long run through the development of sustainable competitive advantage. This advantage can be
achieved if the organization manages to position itself in a preferred position in the competitive
arena, often through the accumulation of unique resources.
The critics of the rational strategy model suggest instead that the strategies which emerge
in businesses are a combination of planned strategies and unanticipated emergent strategies.
This emergent strategy approach suggests that strategies may be realised because of, despite, or
in the absence of, objectivesthey simply happen along the way. Such an approach sees the
essential role of managers as moving their organizations along in small incremental steps rather
than relying on visions or strategic plans. The emergent strategy approach sees no clear
distinction between the steps of strategy development and strategy implementation: instead it
views the business as learning by experimentation and discussion as strategies are developed,
implemented, revised and adapted (Hoopes, Madsen & Walker, pp. 889).
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Recommendations
The company should start the manufacturing of buses and truck that should be compact.
This would make the traffic easier on the roads. The drive would be easier and the issues of
parking would be further solved. The company should work on the electric cars because it
would magnetize environment lovers and would considerably decrease the operating costs.
The company should make its positioning extremely apparent to the Target market segment
which includes students, business people and working ladies along with the old people.
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