Inventory Management in the Supply Chain Essay Example | Topics and Well Written Essays - 2750 words

Inventory Management in the Supply Chain - Essay Example As the paper declares the supply chain begins with the extraction of the raw material, there are then value additions along the supply chain along with several production links before the product finally reaches the end consumer. The Global Supply Chain Forum introcduced a supply chain model which included the following business processes which are cross-functional and cross-firm in nature. These processes and components include; customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development and commercialization and returns management/ reverse logistics. This discussion stresses that supply chains are an integral component of any business. The term ‘Supply Chain Management’ was coined in the 1980s to express the need of integrating the key business functions from the supplier to the end user. The original idea behind supply chain is that companies involve themselves in sharing of information regarding market dynamics and production capabilities. The automobile industry has experienced a boom in recent years with automobile demand soaring up. However today it faces a lot of challenges including ; cost reduction and performance improvement, emerging markets, excess labour, production capacity and inventory, retail and distribution performance and environmental sustainability. In this situation it has been imperative to examine all areas of the value chain in the industry including the supply chain. This is because companies