Supply Chain Management: Define Supply Chain Management
Article 4 Review
O’Marah, K. (2018, July 5). The semantics of supply chain.” Forbes. Retrieved from https://www.forbes.com/sites/kevinomarah/2018/07/05/the-semantics-of-supply-chain/#4ea0fcef4db5
Synopsis
In “The Semantics of Supply Chain,” Kevin O’Marah (2018) attempts to convince his audience about the superiority of the term “supply chain,” its impact on economics, and the long term-scope in business organizations. The author’s argument is based on the existing variation in people’s perception of the terminology, especially those who regard it as unexciting and a label with baggage. In O’Marah’s view, supply chain as a network of shared responsibilities and an independent occupation is responsible for boosting profits, delivering innovation, and improving people’s lives through three foundational metrics: cost, quality, and speed.
In support of his argument regarding the supply chain as an independent profession and a practice that facilitates organizational success, the author uses real-life examples in the business world, where the concept has been highly utilized. For instance, he gives the scenario of companies such as Walmart, Apple, and Amazon, which manage to create shareholders’ value through effective supply chain management (O’Marah, 2018). In addition, the writer mentions some of the most prominent positions in organizations that are currently occupied by individuals elevated from supply chain roles, such as CEOs of Apple and General Motors (O’Marah, 2018). Furthermore, he acknowledges that supply chain programs have become autonomous majors in universities. The author’s main aim of highlighting the above examples is to rebrand the notion of supply chain among his audience.
O’Marah also briefly discusses the three foundational metrics of supply chain management, cost quality, and speed. In his view, the long-term scope of supply chain management is determined by a successful balance between traditional accountability of cost, quality, and the 21st century need for speed (O’Marah, 2018). If properly adjusted, the three elements can easily facilitate the primary functions of organizations, which include triggering customer demand, indulging in research and development (R&D) to invent products that satisfy demand, and supplying goods within the shortest time possible. In general, the author attempts to explain factors that determine the effectiveness of supply chain management.
How This Relates to Chapter 12
Chapter 12 relates to the article on the aspect of project phases and factors that define projects’ success. Just like other business initiatives, supply chain management is a process whose effectiveness can be measured against pre-established metrics. For instance, cost, quality, and speed are the three main foundational metrics defining the supply chain’s future (O’Marah, 2018). Hence, supply chains that fail to operate profitably or provide quality products and services and fail to function within the expected time frame may need to review their plans. Additionally, the author highlights a vital project phase-post-completion stage, where cross-functional meetings, such as sales and operations planning (S&OP) meetings and stage-gate reviews, are conducted (O’Marah, 2018). Similarly, the chapter addresses the metrics of project success, such as plan completion within the allocated time and budget and project phases, including the post-completion stage.
My Opinion on the Article
In my view, the supply chain is an essential system in small and large organizations because it facilitates shareholders’ value creation, generates profits, and develops products that satisfy consumer needs. Hence, supply chain as a profession should be promoted in higher learning institutions. However, firms that wish to adopt the system in their daily operations should ensure that the network is monitored closely and evaluated against the firm’s and industrial metrics, which include cost, efficiency, quality, and speed, to ensure that supply chain facilitates the intended outcome.
