Logistics and Supply Chain Management BUAD435 Chapters 3 4

Logistics and Supply Chain Management BUAD435

Chapters 3 & 4 discussed Supply Chain Relationships and Strategies. Pick one main concept from either of these chapters and discuss the importance of the concept both in a positive and negative manner. This post should be no less than 250 words.

Solution

Risks and benefits of supply chain management outsourcing

Supply chain management is an important part of organization and the globalized environment witnessed the outsourcing of supply chain management. It can be useful for few businesses but it can also pose few risks.

It helps for focusing on other business aspects. This is useful as the individuals in the organization can concentrate on supply and distribution handling. It is also useful as it saves time for marketing and developing customer relationships.

It helps for minimizing the overall costs with outsourcing of supply chain management. It helps for the organization to focus on other important aspects.

It helps for meeting the demand of the customers and focus on building the brand equity. It can be an important accelerator for the business.

It adds more flexibility and helps for raiding customer satisfaction. It helps for fueling growth and adds higher profit margins.

Risks

It can cause potential setbacks with its complex process. It had opportunities as well as complications if there are unrealistic timeliness included in it.

There can be unanticipated costs attached to it and this can cause problems with cost projections.

There might be difficulty for integration and complications related to transition process. It might need financial backing which might get complicated and result in delays and mishaps.

When there is lack of experience and quality it may result in deterioration of quality and brand equity.