VALUE NETWORK MANAGEMENT 4
SupplyChain Management and
Supplychain management is generally the oversight of information, materialsand finances as they move in an avenue from the supplier to theconsumer (Burt, Petcavage & Pinkerton, 2010). Before reaching theconsumer, the three elements of supply chain management move frommanufacturers to wholesalers and then to the retailers. It involvesdetailed coordination and integration of these flows both among andwithin companies. On the other hand, value chain management involvesorganizing the connected set of activities that form the value byproducing goods or services from the materials for supply to theconsumer (Burt, Petcavage & Pinkerton, 2010). The main reason forapplying value chain management in businesses is to integratecommunication and improve cooperation among production chain members.It is essential in order to reduce inventories, decrease deliverytimes and ensure customer satisfaction is achieved.
VisionStatement and a Mission Statement
Amission statement illustrates a company’s or business’s reasonfor existence (Burt, Petcavage & Pinkerton, 2010). It furtherdescribes what a company or business does and the intention. Inaddition, the mission supports the vision and communicates thepurpose and direction to stakeholders, employees, vendors and thecustomers. A mission can always change to reflect the priorities andmethods a company or business has put in place to accomplish thevision. On the other hand, a vision statement describes how a companyor a business hopes to appear in the future after going throughsuccess (Burt, Petcavage & Pinkerton, 2010). When coming up witha vision statement, the management tries to answer the followingquestion- if the company or business achieves all the strategicgoals, how would it look like in a decade from now? It should beinspirational and should challenge and inspire the employees. Itcreates an image in mind of the future state that the company orbusiness wishes to achieve (Burt, Petcavage & Pinkerton, 2010).
Elementsof the course that you believe are effective and elements that can beimproved.
Themain elements of the course include demand management, communication,collaboration and integration. Demand management is the mostessential aspect of supply management since it focuses on companies’activities to meet the customers’ needs. There is need foreffective communication in order to improve the productivity andefficiency by enabling all the stakeholders to experience same demandand information concerning operations. Integration helps all themembers involved to reduce the inventory costs while collaborationensures that it strengthens the relationships by improving networks. The elements that need improvement involve risk management, leverageand innovation. Companies need to reduce management spending despitetheir revenue and size. In addition, the companies that support andrepresent the operations of the company externally may present riskto them. Hence, an effective risk management strategy has to be putin place (Burt, Petcavage & Pinkerton, 2010).
Burt,D. N., Petcavage, S. D. & Pinkerton, R. L. (2010). Supplymanagement. Boston: McGraw-Hill Irwin.