There is fierce competition in the world market, which has led various businesses to develop a give–take relationship with the suppliers and the consumers. The processes in a business, such as decision making and material flow through various supply chains to meet the final consumer's needs, is called supply chain management.

SCM or Supply Chain Management systems have been effectively in use by various organisations since the 1990s. From small businesses to huge enterprises, harmony and coordination of various supply chains are necessary to determine the business's profits.

The worldwide network of the supply chain is predicted to experience a market value rise of 11.2%, which equates to 37 billion dollars from 2020 to 2027. Such a surge will persist in the market despite the Covid crisis.

In this literature review on supply chain management, we will review the various factors of a supply chain and the future scope of the supply chain to produce, distribute, and sell a business's goods. As the business and technology sector is changing and evolving every day, there are various future scopes for improving the SMC.

5 key objectives ofsupply chain management

Key Decisions in a Supply Chain Management System

An organisation's supply chain management system has three major components: business processes, network, and management. Maintaining these three allows the business to meet the supply chain's objectives and determine the supply chain's performance. Different industries have distinct models and modes for all such processes, yet the prime aim remains customer-oriented.


An organisation's supply chain management refers to various processes combined, movement of products, planning, development, manufacture and distribution, ect are all included in an SCM. The prime objective of such a system is to heed the business principles, improve quality, efficiency, logistics and offer the customers enhanced goods at low prices.


Supply chain performance is another important factor affected by the decision making processes in a business. Many factors define the quality of an SCM's performance; product availability, meeting customer requirements, and delivering the goods on time are some factors. These factors are often the external factors of a business environment; the availability of raw materials, different geographical, economic conditions, and recession are some factors that affect the performance of a supply chain.

Third-party logistics improve supply chain efficiency, and they also save money. Over 70 per cent of suppliers use third party logistics, which helps them reduce cost while also enhancing their quality.

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SCM Decisions

  • Business Processes - The different processes under a business affect the supply chain. Customer relationship management, service management, demand management, order delivery, manufacturing to meet the demand, and procurement are the main business processes important for maintaining the supply chain.
  • Network Structure - The supply chain network structure of every business is different, and it majorly depends on the type of goods or service they offer and the medium of sales. The SCM design includes technology, market availability, processes, cost, and other external factors. The supply chain framework is intricate and must be maintained at various levels.
  • Management Components - Planning, sourcing raw materials, manufacturing process, delivery medium and duration, and return policies are the basic processes that the different departments must manage under an organisation.

An SMC is composed of these key elements, and the objective and performance depend on these. All the processes mentioned here might not be necessary for every business model. The proper management of a supply chain allows the fulfilment of the objective, and maintaining the performance helps innovate new strategies and sub-models for improvement in the business.

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what are the main supply chain decisions

What are a Few Redesign Strategies that Can Improve Effectiveness and Efficiency in an SCM?

There are various processes under an organisation, and the optimal functioning of the supply chain results in increased efficiency and organisational effectiveness. Managing individual processes to improve implementation at the organisational level can be done through various strategies; a few of the factors on which strategies can be developed are:

  • Redesigning the roles and responsibilities of the various entities involved in the supply chain can also improve or disturb the flow of goods and services. Increasing the number of labourers in an organisation's business process helps increase efficiency.
  • Reducing the customer leads or taking orders also help manage the performance of the SCM. Of course, not many businesses can deny their customer services, but it is not exactly denying them. The process of putting the customers on a waitlist or letting them choose an order receiving date is an example of such practice.
  • Creating new processes in the organisation also might increase the number of sub-processes to be managed. Yet, it will help increase productivity and reduce the timing for delivering the outcome.
  • Synchronisation of the various processes is one of the most important factors, as a slight imbalance can disrupt the supply chain. Delayed delivery often results in disparity in the supply-demand framework, resulting in monetary losses.
  • Coordination among the processes help ensure the logistic decision-making process as the various processes would be aware of the overall demand and supply for effective functioning of the business.

Customers are beginning to demand same-day delivery from stores, putting strain on supply chains — again another factor why third-party logistics are so popular among large corporations.

To identify the shortcomings of a supply chain model, businesses must focus on these factors to improve efficiency. As we discussed above, the effectiveness of an SCM model depends on the objective, and it also depends on the sub-objective of each process. The planning, workflow, communication, and management methods are the management groups that must align to maintain effectiveness and efficiency.

Literature Review on Supply Chain Management: A Sample Case Study

Universities might be a place of learning and are entirely related to academics, yet it also possesses a business model and a supply chain model. Many factors help maintain the efficiency of an education industry business model. A few of such factors are programs in the university, faculty, university culture, and facilities for the student. Such factors decide the learning effectiveness of an educational institution.

SCM Factors in Tertiary Educational Institutions to Accomplish Effective Learning.

Availability of programs: It is the most important yet basic factor for university/ education institution functioning. Students pick a university majorly based on the programs available there, and it determines the effectiveness of the business model.

Faculty: We often witness the qualification of the faculty members written beside their names; it is to let the customers (students) perceive the abilities of the organisation or university. The more qualified the professors are, the more reliable the university is or atleast perceived as such.

University Culture: University culture comprises the courses, extracurricular activities, sports programs, and other socio-economic factors that determine the university environment. Students often choose a university based on the university culture; the "Harvard is for scholars" notion defines it the best.

Facilities: The facilities in an educational institution also helps students to learn effectively as various courses require different facilities. For example, students pursuing a nursing course will need a laboratory for their lab classes, and engineering students will conduct their practical learning in a workshop.

The main objective is to provide educational facilities and varied programs that help the students in the institution learn effectively and get employment. These basic facilities determine the university's effectiveness and are the exclusive factors that maintain the institution's supply chain. A university has different input materials, and processes are different than your regular corporation; it requires a library, classrooms, teaching staff, non-teaching faculty, sports facilities, etc; to function. The availability of such materials and the proper management of all processes influence the students' learning process in the university.

Supply chain analytics, inventory management, and financial management are a part of management studies. Students often find such concepts hard to comprehend. Get Management Assignment Help for compiling your assignments; learn these concepts with subject matter experts and score HD. Enrol today!

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About the Author

Charles Hill

Charles Hill

Charles writes blogs and articles for students who are facing problems with their management assignments. His articles have been featured on several websites. He has contributed to the academic enhancement of students from the University of New South Wales, Central Queensland University, Edith Cowan University, etc. He joined the team of My Assignment Services as a consulting expert and now is a full-time academic help provider. His expertise in the field of management covers topics like leadership management, human resource management, business management and several others. His blogs focus on solving the most complex of the queries and simplifying the processes.


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