After reviewing the video, please do a comparative analysis of what you learned in the textbook reading assignment and video. Describe the pros and cons of the supply chain management process.
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Supply chain management is extremely important in every industry out there – not just in aviation, and not just in companies that deliver tangible products. Everything we as end-user consumers receive, whether it is a tangible product or an intangible service, has been a part of a supply chain at some point. Like the person in the video mentioned, nothing in manufacturing is free. A water bottle is a pretty good example of a tangible product, and hotels are great examples of manufacturers of experiences vs. things that the consumer can take home with them. It is important for managers in manufacturing both tangible products and intangible services to understand that everything comes at a cost, and that nothing is really free. This is why, to bring in a profit, it’s important to ensure that operations are streamlined and extraneous expenditures are minimized where possible.
One of the most obvious advantages of supply chain management is that it gives managers a quite detailed look into the manufacturing processes in their specific organizations, and allows them to gauge the likelihood of future supplier relationships that will reduce outright expenditures. By working with a supplier that understands the needs of the manufacturing business and ensures that whatever they supply toward the end result will positively impact the product, the business will be able to better achieve its goals. Communication and collaboration between managers in different organizations is essential to ensuring efficient product manufacturing and deliveries that meet established quotas and deadlines. Another advantage of SCM is that it allows management to make changes to production where necessary. If managers determine that a supplied material is not holding its own or is not positively contributing to the end result, they can choose another product or supplier that will better address their business needs and goals for the future. This might take some time as most manufacturing partnerships are bound by contracts, but once a contract is up neither side is under any obligation to renew it. Because of this, competition between suppliers for new contracts and renewals is fierce.