Supply Chain Management Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers. (Handfield, 2011) The CEO of Durham International Manufacturing Company believes that the company can significantly increase its operating profit by implementing supply change management. An analysis will discuss DIMCO current supply chain, suggests the advantages of implementing a new supply chain system, recommend a strategy for external suppliers and distributors, and analyze the consequences of all recommendations by identifying who can be affected and how.
Discuss the current supply chain system at DIMCO.
Durham International Manufacturing Company (DIMCO), CEO Lucille Jenkins is looking to integrating the company external processes. The company currently has a traditional or basic supply chain structure which consists of three components; the company’s internal functions, external suppliers, and external distributors. The internal function includes 1350 different components and raw material in manufacturing its product line. The external suppliers are those components and raw material purchased from approximately 375 different suppliers around the world. The finished goods are then sent to external distributor which is in this case is a central warehouse. The central warehouse supplies 10 regional distribution centers
References: Handfield, R. PH D. (2011). What is Supply Chain Management? Retrieved from
Reid, R. D., & Sanders, N. R. (2010). Operations Management: An Integrated Approach.
Hoboken, NJ: John Wiley & Sons, Inc.