The Impact of Efficient Supply Chain Management

Topics: Supply chain management, Supply chain, Management Pages: 36 (9006 words) Published: February 10, 2011


Background of the Study.

In the 1940’s, there were two hospitals located on a hill in Bantama township designated African and European Hospitals. As the names imply, the African side treated Africans while the European side treated Europeans. However on some rare occasions, high ranking African government officials were given treatment in the European section.

By 1952 there was the need to construct a new hospital to cater for the fast increasing population in Kumasi and for that matter Ashanti Region. The European hospital was transferred to the then Kwadaso Military Quarters to make way for the new project to begin. Between 1954 and 1955, the new hospital complex was completed and named the Kumasi Central Hospital. The name was later changed to Komfo Anokye Teaching Hospital in honor and memory of the powerful and legendary priest Komfo Anokye. The hospital later became a Teaching Hospital in 1975 for the training of Medical Students in collaboration with the school of Medical Sciences of the University of Science and Technology, Kumasi. The mission of the hospital is to provide quality services to meet the needs and expectations of all its clients. This will be achieved through well motivated and committed staff applying best practices and innovations. Effective management of the supply chain requires a thorough assessment of all the constituents of the supply chain environment. The assessment will help reveal deficiencies in the overall system, comprising logistical support, inventory management, and control, supplier relationship management and warehousing activities.

Failure to plan critically for the supply chain can lead to breakdown in the production schedule and service delivery time which in the end creates added cost. Therefore supply chain, as a set of activities that are directly involved in the upstream and downstream flows of products, services, logistics, and/or information from a source to a customer etc, needs a critical and efficient management so as to avoid total shut down.

The successful running of every business is enhanced by a well-managed supply chain. It is because of this that Komfo Anokye Teaching Hospital being a centre of excellence has been selected as a case study for his project work.

Statement of the Problem
It is the vision of every organization to achieve some objectives among which may include the satisfaction of its clients and to achieve a competitive advantage over its competitors in the market environment. Most organizations achieve and make large investments to streamline their supply chain in order to improve customer satisfaction and increase internal productivity. It is the provision of effective management practices and strategies that will ensure that these benefits can be derived.

The success and failure of every organization depend largely on its supply chain performance therefore, responsibilities should be entrusted in the care of well structured procurement unit, suppliers performance management and evaluation unit, stock control section and effective inventory and stores section that work towards the realization of the organizational goals and objectives in line with the organizational culture and mission.

In the service organizations these activities are limited usually to placement of order for stock replenishment, supplier’s consignment note, invoice checking and recording transaction and issuing of the actual goods to the user department. However, the supply chain system should encompass these strategic purchasing, planning, organization system improvement through assessment and evaluations. All theses are overlooked in most service providing organizations which should be given required consideration. There are problems with inventory control system. Stock levels are not properly monitored, here, there are frequent shortages of vital and highly ranked items that will sustain the operational schedule...
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