(ANSWERED) Key Enablers To Manage SCRM and Enhance Profitability SCMG301

Week 2 Discussion: Key Enablers to Manage SCRM and Enhance Profitability
CO2: Understand how to build a risk management foundation using supply chain risk management enablers.
Discussion Prompt:
Our text offers four basic supply chain risk management enablers – A supportive Organizational Design, Information Technology, Measurement systems, and Talent Management. Describe two of these and offer real world examples of organizations which incorporate these enablers to better manage risk in their supply chains. Possible organizations to consider may be found at the Supply Chain Risk Leadership Council, or Resilinc.

Expert A+ Answer: Key Enablers To Manage SCRM and Enhance Profitability

Effective supply chain risk management is critical for ensuring organizational success and survival. Building a risk management foundation can be achieved through the use of supply chain risk management enablers, which help organizations proactively identify and mitigate potential risks within their supply chain operations.

Information technology and measurement systems are two key enablers of supply chain risk management. Information technology enables the use of IT tools and technologies to manage the risks associated with the supply chain.

This enabler provides real-time data to supply chain managers, allowing them to assess potential risks within an organization’s supply chain. For example, Amazon uses various IT tools and techniques, such as tracking devices and SaaS solutions, to mitigate risks associated with its supply chain operations.

By tracking every shipment, Amazon can prevent risks associated with incorrect order deliveries. At the same time, SaaS solutions provide self-scheduling, shipment tracking, route optimization, and constant customer communication support to mitigate the risks associated with roadblocks and climate changes.

Measurement systems are another enabler that consistently monitors the operations and requirements at every level of supply chain operations, minimizing risks associated with insufficient materials and poor quality products.

For example, Walmart uses inventory management systems to track each product from its source to its destination. These systems help the company in avoiding the risks associated with overstocking and understocking goods.

In addition, by utilizing data from various sources within the supply chain, Walmart ensures that the supply of products is in accordance with the company’s requirements.

Incorporating these enablers into supply chain risk management strategies can provide a proactive approach to managing supply chain risks.

Organizations that successfully implement these enablers can improve their overall supply chain performance, reduce operational costs, and minimize disruptions caused by potential risks.

References

Schlegel, G. L., & Trent, R. J. (2014). Supply Chain Risk Management: An Emerging Discipline. Boca Raton: Taylor & Francis Group.
https://www.urtasker.com/walmart-inventory-management-system/
https://aws.amazon.com/industrial/supply-chain-management/

Key Enablers To Manage SCRM and Enhance Profitability

Organizational Design: Organizations use organizational design to create an effective and efficient supply chain. This includes creating a structure that allows for the efficient flow of materials, information, and money. An example of this is Walmart, which has a hierarchical structure that allows for the efficient flow of goods from suppliers to stores.

Walmart has a well-defined organizational structure that includes a CEO, CFO, COO, and other executive positions. The structure is designed to ensure that the company’s operations are efficient and effective. The company also has a well-defined supply chain structure that includes suppliers, distribution centers, and stores.

This structure allows for the efficient flow of goods from suppliers to stores. Walmart has a sophisticated information system that allows for the efficient flow of data from suppliers to stores. This system allows the company to track the flow of goods, monitor inventory levels, and analyze data.

The system also allows Walmart to identify potential risks and take corrective action. The company also has a well-defined process for responding to customer complaints and resolving disputes.

This process ensures that customer issues are addressed in a timely and efficient manner. Walmart’s organizational design also allows for the efficient flow of money. The company has a well-defined system
for tracking payments and ensuring that suppliers are paid on time.

This system also allows Walmart to identify potential risks and take corrective action. The company also has a well-defined process for resolving disputes and ensuring that suppliers are paid in a timely manner.

Information Technology: Organizations use information technology to manage their supply chain risk.This includes using software to track the flow of goods, monitor inventory levels, and analyze data.

An example of this is Amazon, which uses its own proprietary software to track the flow of goods from suppliers to customers.

Amazon’s information technology system allows the company to track the flow of goods from suppliers to customers. The system allows Amazon to monitor inventory levels and identify potential risks. The system also allows Amazon to analyze data and identify potential problems.

The system also allows Amazon to respond quickly to customer complaints and resolve disputes. The system also allows Amazon to track payments and ensure that suppliers are paid on time. The system also allows Amazon to identify potential risks and take corrective action.

The system also allows Amazon to analyze data and identify potential problems. The system also allows Amazon to respond quickly to customer complaints and resolve disputes.

References

Schlegel, G. L., & Trent, R. J. (2014). Supply Chain Risk Management: An Emerging Discipline. Boca Raton: Taylor & Francis Group.

Key Enablers To Manage SCRM and Enhance Profitability

Organizational design and information technology are critical enablers for managing supply chain risks. According to Schlegel and Trent (2013), “organizational design specifies the framework of authority, responsibility, and communication relationships that enable the organization to pursue and achieve its objectives” (p. 61).

Effective organizational design can help organizations to mitigate supply chain risks by defining roles and responsibilities, establishing communication channels, and ensuring accountability.

On the other hand, information technology (IT) can support risk management through real-time data
collection, analysis, and communication. IT tools such as supply chain management systems (SCMS) can provide visibility into supply chain activities, identify potential disruptions, and enable timely responses (Schlegel & Trent, 2013).

Nike and Apple are two organizations that have successfully integrated organizational design and IT to manage supply chain risks. Nike, for instance, has a dedicated team responsible for supply chain risk management, which is supported by a sophisticated IT infrastructure (Supply Chain Risk Leadership Council, n.d.).

The company uses a variety of tools, including SCMS, supplier scorecards, and risk assessment templates, to monitor and mitigate risks in its supply chain.

In addition, Nike has established a cross-functional risk management framework that involves all key stakeholders, including suppliers, distributors, and customers.

Similarly, Apple has implemented a comprehensive risk management program that leverages its organizational structure and IT capabilities. The company’s supply chain organization is designed to ensure end-to-end visibility and control over its supply chain activities (Resilinc, 2019).

Apple uses a proprietary supplier risk assessment tool that evaluates supplier performance based on various criteria, such as financial stability, compliance, and operational capability. The company also conducts regular audits and inspections to identify and address potential risks.

Furthermore, Apple uses advanced IT systems, such as real-time demand forecasting and inventory management tools, to enable proactive risk management (Resilinc, 2019).

Finally, organizational design and information technology are essential enablers for managing supply chain risks. Effective organizational design can help to establish clear roles and responsibilities, while IT tools can provide real-time data and analytics to support risk management decisions.

Nike and Apple are examples of organizations that have successfully integrated these enablers to manage supply chain risks.

References

Schlegel, G. L., & Trent, R. J. (2018). Supply Chain Risk Management: An Emerging Discipline (2nd ed.). CRC Press.
Supply Chain Risk Leadership Council. (n.d.). Members. https://www.scrlc.com/members/
Resilinc. (n.d.). Customers. https://www.resilinc.com/customers/

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