LOOPHOLES IN THE SUPPLY CHAIN MANAGEMENT

Introduction:

SCM is a two way inter-enterprise system that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners. The goal of SCM is to create a fast, efficient , and low cost network of business relationships, or supply chain, to get a company’s products from concept to market.
What exactly is a company’s supply chain? Let’s suppose a company wants to build and sell a product to atother businesses. Then it must buy raw materials and a variety of contracted services from other companies. The inter relationships with suppliers, customers, distributors, and other businesses that are needed to design, and sell a product make up the network of business entities, relationships, and processes that is called a supply chain. Because each supply chain process should add value to the production or services a company produces, a supply chain is frequently called a value chain. Many companies are using internet technologies to create inter-enterprise e-business systems for supply chain management that help a company streamline its traditional supply chain processes.[1]

The biggest loophole in today’s era:

The uninterrupted flow of goods and services to the users or customers are essential for the survival and growth of a business firm.
For example , if we take the case of bribing doctors under the table for writing the prescriptions of drugs or the medicines that are told by the medical representatives(MR) of a particular company’s because they are paid for that. These company’s and doctors are playing with the life of many people in the country. They are suppose to save the life’s of the people by giving them proper medication and these people are doing such things so that is a shame for us.in some cases they just prescribe the wrong medicine and it can prove fatal for anyone.

 Keys to avoid it:

The logistics management is the answer . Energy and people are also included within logistics management. In simple terms, logistics management can be defined as a channel of supply chain management that leads to adding value to time and place. Logistics management enables to plan, implement and control the efficient, effective to and fro flow and storage of goods, services and related information. Automation plays a significant role in the success of logistics management. This automation can be done by Warehousing and logistics software. These software package are aimed at improving the efficiency of logistics operations and make it error free.

 Many companies have started manufacturing the logistics and warehousing softwares due to its heavy demand. There are different types of software’s and customised versions available in the market. However, Warehousing and logistics software is a better deal as it is specially designed keeping the specific issues of your business in mind. For this purpose many company’s are providing softwares at affordable rate.[2]

So, I strongly believe that as these companies are responsible for the protecting the people from various medical problems, so there should be strict laws against such acts.

“This blog does not contain any plagiarized material.”

References:

1. Management information system, a book written by James O’ Brien and Ramesh Behl.

2. : http://articles.itzall.com/viewart.php?artID=13261 [accessed on 20th march 2010]