Question-5 of SMU Assignment-1 from the MB 0028 Book

Hi to all! I am going to publish question 5 which is the from MB 0028 assignment. I have already published question 4 in my previous post. I think it will also help you in the understanding of SCM in MBA.

Question 5. Explain the necessity and objectives a SCM?

Answer. SCM is the abbreviation of supply chain Management. It is considered by many express worldwide as the ultimate solution towards efficient enterprise management.

Now, we explain the necessity and objectives of SCM-

SCM is required by and enterprise as a tow to enhance management effectiveness with a following organizational objective:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP, Accounting. Software and Documentation like financial reports statements ISO 9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication systems, documentation system and secure, Design R&D systems etc.

Better utilization of resources- men, material, equipment and money.

Optimization of money flow cycle within the organization as well as to and from external agencies.

Enhancement of value of products, operations and services and consequently, enhancements of profitability.

Enhancement of satisfaction level of customer and clients, supporting institutions, statutory control agencies, supporting institutions, statutory control agencies, suppliers and vendors, employees and executives.

Enhancement of flexibility in the organization to help in easy implementation of schemes involving modernization, expansion and divestment, merges and acquisitions.

Enhancement of coverage and accuracy of management information systems.
With the objectives of SCM its implementation are required. Implementation is in the form of various functional blocks of an organization interpenetrated through which a smooth flow of the product development is possible.

A relatively new SCM option involves web based software with a browser interface. Several electronic marketplaces for buying and selling goods and materials.