The coordination of the Supply Chain Management varies on the business industry and collaboration of each company functions. In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities, most important fundamental component of the supply chain management would be Functional Coordination within the firm operation, without this function we couldn’t isolate who does what in each phase of operation, and couldn’t determine who being profitable by accomplishing the objective task ...view middle of the document...
The transportation manager was not attentive or notified of the billing cost of each outbound load being transported out of the warehouse facility only scheduled orders. The logistics of our operation is a very exhausting cause of the reporting to the state who we selling wine to and excises taxes. The coordination of each process is very important that every individual in the process chain comprehends their responsibility and their job assignments, each department should comprehend the multi-functional positions. As the owner of the company I had to identify the cost approach in each phase of the supply chain process I scrutinized the actual expense of these transactions.
Prestige’s Wines LLC has been able to follow each step of the process and cut cost due to the mishandling of the logistics. The saving is about 30 percent per transaction, a major cost saving out the operation expense of each outbound order from the bottom line of that department expense, by just scrutinizing the internal process with the cooperative arrangement with each outsourced company of the logistics operation.
The external operation had to be assessed also because it too had higher expense on the cost side, the employee’s didn’t have clear communication with logistics team until I clarified to the staff that this discrepancy will affect their quarterly bonuses at the end of the fiscal year for Christmas bonus, the team now has taken the initiative to research favorable rates, the group and management started endorsing for reasonable rates to ship and distribute the wines product to our customers. The Cross-functional alliance is to evaluate the state of the supply chain and the needs of the organization and the customer, then it determines an approach for creating and sustaining value based on that collaborative assessment, that’s something I have come to realize about Supply Chain Management Process.
I have to comprehend that the systemic, strategic coordination of the traditional business functions and tactics across these businesses functions within a particular organization and across businesses within the supply chain for the purposes of improving the long-term performance of the individual organizations and the supply chain as a whole. The first are functions the supply chain partner does not do well, but are your core competencies. These are functions you can do for your partners that will tie them more closely to you as either a supplier or a customer, both of which are sources of competitive advantage.
The second are functions that the supply chain partner does well, that your company does not. These are functions you should let your supply chain partner do for you, who will get the function done better and at less cost to you again, a source of competitive advantage. Of course, all these combinations require close coordination with the supply chain partner to ensure optimal performance of the functions and elimination of duplication of effort.