The supply chain management process
in the retail market includes the merchandise planning and the movement from
preparing the purchase order to its availability to the customers. The supply
chain management is an end to end integrated process where the information
plays an important role throughout the each step of the process so that timely
action can be taken if anything goes out of place. There are various components
of the chain and a critical analysis of the implication in this management will
be discussed in this assignment. The various supplies and sourcing of the
requirements in the organisations will be elaborately evaluated along with the
financial implications of the supply and purchasing decisions. The various
concepts involved in the selection of the marketing organisation with its
skilled knowledge to negotiate the procurement procedures will be explained
thoroughly with the help of the concepts of the theoretical models within the
retail sectors in the UK.
Stadtler (2015, p.28) stated that
the purchasing is the basic need of an individual and in the supply and chain
management business processes involve from various raw materials to complete
waste management. In the new order, purchasing product is focused on various
efforts of creating different innovative processes and products. The supply
chain management is a researched track that helps to organize capabilities and
abilities of different suppliers and customers. The quality of performance
determines the effectiveness of the purchasing activities and operations of the
suppliers. The managers of supply and purchase department play a more strategic
role towards its operational activities in an organisation. Fernie and Sparks
(2014, p. 80) commented that the increased amount of specialization in outsourcing
have taken a closer look towards the capabilities of the different resources.
The supply chain management helps in the flow of various services and goods
that helps in process or movement of procurement in the storage of raw
materials in various inventory processes and of various finished goods from the
consumption point of view.
Hingley et al. (2015, p.84) mentioned that the main components of the
supply management system are the plan which has the strategy of the program
that includes various development metrics to be monitored. The suppliers
provide various services and goods that are necessary to run the business and
the various components of execution that requires various packages to test and
produce products and services. There are various delivery systems that receive
orders for customers and networks of the warehouses that result in the
receiving and invoicing payments from the concerned customers. Kozlenkova et al. (2015, p.609) mentioned that, the
system of returning should also be kept in mind that supports and processes
problems of the product from the customers. The organisation should focus on
various companies and its partners that require meeting the needs of their
customers. In order to maximize the supplied content and add supplemented
values to the finished product is the duty of the supply chain. There is
increased the need for production in the supply and business chain of
opportunities for the members. An essential component is a communication that
requires essential efficiency for the production operation that enables members
to demand operational information. Cai et
al. (2013, p.765) states that the new products or services are helped by
efficient communication in the progress level of the business of the
organisation. The integration component is considered as the key to reducing
costs of inventory in order to get a successful progress in the chain
management. It is essential for the organisation to develop integrated
information networks so that the members can access the data securely. Open
standards like the internet protocol are effective to members in spite of them
having various internet networks. Collaboration between the members is
essential as it strengthens the supply chain and improves teamwork between
members and their businesses. Various leading companies training and
development program helps to improve supply markets along with the product
knowledge. An addition to the joint development program with partners helps by
contributing to the knowledge of materials and market partners.
According to the Flint, Lusch, and Vargo (2014, p.23), the sourcing and
supply requirements refer to the procurement practices that aim at finding,
engaging and even evaluating the goods and services of the retailer
organisation. Outsourcing is the process of business function with someone
else. It helps to find the location with the lowest cost and the technology
also helps in the role of delivering collaboration and managing risks. Smart
sourcing is also a mean for responsible sourcing. The source and the supply
chain have helped in the change in some retailers to look for different places
to manufacture goods. Even the new concept of rising global protectionism
sentiment in prompting some of the international sources all together to move
more in production with some home countries at least in a closer way.
As per Holmstrőm et al. (2016, p.37), the implication on
finance on the supply chain is a set of processes and tools to supply a
productive flow in the organisation that minimizes expense as well as
maximizing the profit level. The main objective will be to take the advantage
of the principles that have proven the effectiveness for long decades. The flow
in finance is slowly expanded as the purchasing and supply management analyses
and recognizes various interrelated events and tools that have a vivid impact
on the payment as well as pricing inventory terms. The behaviors along with the
customers need are taken into account of the organisation. Vlachos (2014, p.15)
mentioned that the various sale trends influenced by various changes in
departmental as well as unexpected resignations can also be taken into
consideration in the management of supply chains. The finance helps in
optimizing information and physical product flow that is short minded. The
finance cannot be excluded from the supply chain management system, it can lead
to potential cost reductions and the length is categorized as cash to cash
cycle. The invested capital is finance related and it is transformed into goods
that are sold with much more cash. Cost
can be reduced within the designed chain just by keeping few things in mind.
The stock levels of the costs are inventory to finance that also consists of
the credit risks along with sale and insurance matters. The integrated finance
services will create a financial product that is realizing the opportunities
for reduction in costs of the unused.
Hoejmose et al. (2013, p.620)
mentioned that there are various concepts involved in the selection of
purchasing goods in the retail organisation. Market demand plays an important
role in the retail organisation will buy only those goods that are demanded in
an allocated place. The more there wills the demand for a particular commodity
the more the retail organisation will work on it. The market demand is what the
people or the consumer wants from that particular organisation that is a retail
shop.
Culture also plays a vital role in
the management of the retail organisation. There is a huge diversity in culture
in big countries like the UK. The demand is directly proportional to the market
culture environment. The more there is diversity in culture the more will be
the production of the retail organisation. Ultimately, the more is the demand
the more wills the production quantity. The diversity helps the organisation in
producing more goods that are useful to the consumers and also raises the level
of profit. The economic background plays an important role at least to many
people in a country. Everyone doesn’t have the same economic class to purchase
a good so it is the responsibility or rather the benefit of the organisation to
think of the various needs of people of different classes. As it helps their
growth in business it also helps in the people with different backgrounds to
purchase goods of various ranges that are available both for the high class and
people less fortunate than them. The basic duty of the retail organisation is
to think of everyone in its country.
Venkatesh et
al. (2015, p.167) said that the negotiations help us to deal with critical
procurement procedures. The concept helps in providing the vivid descriptions
along with characteristics of various business tools and factors of success
that are useful in professional decision making and its negotiations. The
flexible procedures for procurement help in contracting and consulting with the
supplier's authority that helps in the choice for negotiating with the contract
terms. The contracts advertised falls under the negotiated procedures within
the organisation of retail management in the UK. Ramanathan, (2014, p.220)
mentioned that the negotiated procedure in procurement helps in some specified
law cases. The key characteristics in the procurement take place in the
contractual documents that help in the classified preceding of the choices that
must state and determine in the tender documents. The failure of this
procurement negotiations helps to be obliged in the tender provisions of the
documents. There are no open or restricted procedures that help to the
provisions of the tender documents. The contracting authority can negotiate
with the candidates on the basis of tenders or documents. These can be allowed
only in open procedures but not in the closed.
According to Monczka et al. (2015, p.70) the Retailer’s model
determines the quantity of the uncertain demands from the manufacturer. The
products demanded by the customers are uncertain and it is assumed that the probability
of the density function is known. The manufacturer and the retailer are
coordinated by a backup contract. The demands once realized the retailers could
return as well as unsold to the manufacturers. It is their decision to
formulate the unconstrained problem in optimization.
As per Christopher (2016, p.60) the Supplier’s model formulates
including the revenue sales, costs of components as well as penalty cost for
the defective components.
As per Sanders, (2014, p.31) the media
attention has been regarded as the ethical sourcing that is regarded as the
supply chain working positions. The invested time in mapped resources finds out
the products are coming from. It is important for them to prioritize the map of
supply chain firstly. There are various ways of requesting the suppliers to
increase the performance invisibility and to provide a program on its basis. Crandall,
Crandall, and Chen, (2014, p.18) mentioned that there should always be a risk
in assessing the priority of the supplier in the audit that helps in the
factors like the suppliers with its location, type of product with the
investment value and the chain of supply.
It is essential to set the standards to engage and develop the codes of
conduct based on their behaviors that enable the suppliers to have a sheer
understanding of the goal at the end. Mena, Humphries and Choi, (2013, p. 77)
mentioned that the audit assesses the limitations that are acknowledged to the
poor auditing and understanding standards along with various attempts by
corrupted and defraud auditors. It is essential to employ the effective skills
and methods in the development program that can be engaging suppliers of the
change. Suppliers should be attended to improve and implement systems and process
that builds and supports the better outcomes for both of them. There is an
impact on suppliers to manage and access the faster and the lower impact on the
supplier's ability to maintain several standards on ethical sourcing. It is
easy to make and avoid doing jobs that can become harder and identify the
opportunities to communicate and plan the issues of supply more
effectively.
The efficient purchase and supply
chain management is crucial for the success of the fabrication in the retail
management in the UK. The supply chain management is a widely researched and
applied in domains of retail management. The remains are of several attempts by
the practitioner and a researcher that has competition in all types of
industries that has embraced an approach of manager that has sustainable growth
and profits while achieving it. The focus is primarily on the supply chain
management process that delivers services with the right amount of place, time
and quantity with maximum benefits. The research has explanatory manufacturing
retail industries of U.K that is based on theories of the supply chain
management and various ethical sourcing in purchasing and supply.
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