Understanding business operations Essay Example | Topics and Well Written Essays - 2000 words - 1

Understanding business operations - Essay ExampleSupply image of mountains management integrates the make business processes, from end user through original suppliers.Companies and corporations involve themselves in a supply chain by exchanging information regarding market fluctuations and production capabilities. Technology can be used effectively to sharpen the performance of the supply chain to ensure evaluate propositions at all points of the supply chain. Ensuring superior value propositions based on customer service leads to competitive advantage.If all relevant information is accessible to every relevant keep company, every company in the supply chain has the possibility to and can seek to function optimizing the entire supply chain rather than sub optimize based on a local anaesthetic interest. This will lead to discover planned overall production and distribution which can cut be and give a more attractive final product leading to better sales and better overall res ults for the companies involved.The primary objective of a companys supply chain management is to consummate customer demands through the most efficient use of resources, including distribution capacity, inventory and labour. A supply chain seeks to match demand with supply and do so with the minimal inventory. Various aspects of optimizing the supply chain overwhelm liaising with suppliers to eliminate bottlenecks sourcing strategically to strike a balance between lowest material cost and transportation, implementing JIT (Just In Time) techniques to optimize manufacturing flow maintaining the right mix and location of factories and warehouses to serve customer markets, and using location/allocation, fomite routing analysis, dynamic programming and traditional logistics optimization to maximize the efficiency of the distribution side.Incorporating SCM successfully leads to a unfermented kind of competition on the global market where competition is no longer of the company versus company form but rather takes on a supply chain versus supply chain form.When a firm sustains