Question

Explain the concept of supply chain and show why the goods analogy of a supply chain is inappropriate for services.

"Effective management of the supply chain of goods contributes to better management of the environment". Explain with the help of examples.

Answer 1

supply chain strategy is used by firm to manage it’s inbound and outbound logistics. supply chain strategy helps the firm to manage it supply chain, delivery and continuous operation.

supply chain decision should be linked to need of manufacturer. Suppose manufacturer need delivery within 24-48 hours , for that he can spend extra money. So, for this type of manufacturing firm need to plan its supply chain strategy in such a way that manufacturer get delivery in that time period, for that firm may use transport by air , use technology like drone. So, they should have plan to logically link manufacturer need with the supply chain decision.

So, by doing so supply chain management enhance customer value by producing state of product for the customers.

Now, we always have to remember that supply chain use some mode of transport. It can be water, road, air etc. This mode use resource which degrade our environment. What we need to do is better management of this mode of transport. We need to find the optimum mix of transport which make the environment sustainable and also give sufficient profit to the business that it can survive.

So, we can easily conclude that effective management of the supply chain of goods contributes to better management of the environment