The Management Environment Essay Example | Topics and Well Written Essays - 2500 words

The Management Environment - Essay Example Although it is difficult to believe that Supply chain management is a recent concept since even Shakespeare discussed how ships and merchandise at sea can be at risk from various threats, the process of actually managing a supply chain through technology and modern communication tools is certainly a recent innovation. With reference to globalisation, logistics is simply the science of getting the required materials, goods or equipment to the right people at the right time and the development of this field owes a lot to the military history of civilisation which goes all the way back to the Roman era where armies had to be kept in supply even in far flung regions of the empire (Christopher, 2005). In the modern world, when supply chain management and the philosophy of logistics are combined in an efficient manner a company can become richer and more powerful than any emperor of the past. Supply chain management not only allows the right people to have the right things at the right time, it also makes sure that there is no wastage in the process and the overall costs of the business are reduced (Van Hoek, 2005). For the company, it could mean less mistakes in ordering the right part, making sure that production facilities around the world are occupied and that production matches the consumption as well as client requirements. Every business decision and every business choice comes with an associated cost which must be borne by the shareholders or the owners of the business which means that costs need to be reduced to ensure a healthy profit. An efficiently managed global supply chain does exactly that by cutting down costs in several important areas of business (Christopher, 2 005). Lummus and Demarie (2006) give the example of supply chain management experts such as Renee Gregoire and James Correll who discussed the importance of supply chain management with reference to