Answer to Question #200817 in Management for Sinalo

Question

Factors that influence and challenge supply chain in management

Answer 1

Supply chain refers to processes occurring in a particular sequence during the distribution and production of a commodity. In management, various factors influence and challenge the supply chain. Some of the factors that influence the supply chain include stock control and outsourcing. Through stock control, the amount of available stock is monitored and identified. It applies to both finished and raw materials. Stock control facilitates ease in production and distribution. Outsourcing in the supply chain enables an organization to tap skills lacking in the supply chain and reduce costs. Also, factors such as cost control and partner/supplier relationship management. Supply chain management is faced with the challenge of ensuring that costs during production and distribution are minimized. When the cost of production and distribution is high, it affects the profitability of the organization. Partner/supplier management is another chain supply challenge. When the relationship with a supplier is not good, it results to delay in deliveries or unwillingness to lend items on credit. This leads to delays in production that wastes time while increasing the cost of production.