Question: What is Supply Chain Management and What Are Examples In the Retail Industry?
Explanation, description, and definition of "supply chain management" and examples of it in the U.S. retail industry...
Answer: A supply chain is comprised of all the businesses and individual contributors involved in creating a product, from raw materials to finished merchandise.
Examples of supply chain activities include farming, refining, design, manufacturing, packaging and transportation.
Retail companies become involved in supply chain management in order to control product quality, inventory levels, timing, and expenses. In a global economy, supply chain management often includes dealings with companies and individual contributors in other countries, which requires involvement in politics, trade and tariff laws, quality control, and international relationships.
Because global supply chains are both logistically and technologically complicated, there are now global supply chain management specialists and firms who oversee the process for many different retail companies.
An example of how U.S. retail industry companies are involved with supply chain management was demonstrated by Wal-Mart when it announced its plans for developing a sustainability system for the products sold in its stores, and environmental accountability from all parties involved in its supply chain. An example of what happens when the supply chain is neglected or mismanaged was the global toy recall by Mattel in 2007. After it was discovered that some toys manufactured in China contained toxic lead paint and a design flaw which caused a safety hazard, Mattel had to recall 20 million toys that had been distributed and sold around the world. More About Supply and Demand:
Examples of supply chain activities include farming, refining, design, manufacturing, packaging and transportation.
Retail companies become involved in supply chain management in order to control product quality, inventory levels, timing, and expenses. In a global economy, supply chain management often includes dealings with companies and individual contributors in other countries, which requires involvement in politics, trade and tariff laws, quality control, and international relationships.
Because global supply chains are both logistically and technologically complicated, there are now global supply chain management specialists and firms who oversee the process for many different retail companies.
An example of how U.S. retail industry companies are involved with supply chain management was demonstrated by Wal-Mart when it announced its plans for developing a sustainability system for the products sold in its stores, and environmental accountability from all parties involved in its supply chain. An example of what happens when the supply chain is neglected or mismanaged was the global toy recall by Mattel in 2007. After it was discovered that some toys manufactured in China contained toxic lead paint and a design flaw which caused a safety hazard, Mattel had to recall 20 million toys that had been distributed and sold around the world. More About Supply and Demand:
