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Alongside, An Interesting Element With The Supply Chain Management Is The ...

Alongside, an interesting element with the supply chain management is the twenty-first century is the increasing globalisation where the suppliers and customers for an organization are geographically separated as argued by Malcolm J. Saunders (1997).
Furthermore it is also because of the increasing cost effective strive of the western conglomerates through saving in the procurements of the raw materials or the finished goods for sales from the far eastern countries. The finished goods especially in the clothing and fashion industry that is pre-produced to the necessary design form the key source for savings to the organizations in the west as argued by Robert G. Cooper (2004). The clothing and fashion products retailing in the west contributes a major portion of the revenue both in the European Union and within the UK as argued by Jenny Baxter (2004).
The increase in the competition in the UK retail sector for the clothing and fashion goods have increased the necessity to increase the profit margin and customer relationship through the effective supply chain management. Jenny Baxter (2004) further says that the logistics of the goods in both the procurement and the sales of the finished goods is critical for the effective management of the customer relationship as well as increase the profits.
Operations management in the manufacturing sector is another critical element where the supply of the raw material plays a vital role in the day-to-day production of the goods by the organization (Malcolm J. Saunders, 1997). The manufacturing sector especially in the engineering division where the raw materials range from massive quantities of metal up to the precision tools and equipments for the manufacturers thus making it a critical element in the overall production process in an organization. The increase in the need for the effective production through reducing costs as well as reducing the workshop to the shop floor time efficiency is a critical element in the success of an organization as argued by Malcolm J. Saunders (1997).
Just in Time production method was introduced to increase the productivity of an organization through reducing the time involved in the delivery, warehousing and storage of the raw materials and finished products in the storage. This approach mainly increases the productivity through reducing the costs associated with the storage and area of the workshop floor used for the manufacturing process within the company. E. Houghton and V. Portougal (1997) further justify that the JIT approach to the production in a manufacturing organization is the strategic move to save costs for the organization.


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