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Operational Management 2 .edited

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Running head: OPERATIONAL MANAGEMENT 1

Operational Management

Student’s Name

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OPERATIONAL MANAGEMENT 2

Supply Chain Management

Definition

A supply chain management system is the process of looking at the supply chain as a

whole to coordinate and improve the system's overall flow. The actual flow of supplies, services,

finance, and information from raw material suppliers to the manufacturer to wholesaler to retailer

till the product reaches the consumer is referred to as the supply chain.

The ultimate goal of a sound SCM system is to reduce inventory while keeping products

available when they are needed. Creating net value, establishing a competitive infrastructure,

leveraging logistics, and assessing performance are all tasks that must complete. (Lu, 2018) All

of these items are beneficial to the company's operations. Corporations that buy a comparable

firm in almost the same business are called horizontally integrated, whereas corporations that buy

a business that operates in the manufacturing process within a day of the purchasing organization

are deemed vertically integrated.

Horizontal Integration with Example

Horizontal integration is the absorption of a company in the same industry that employs this

very same number of people. (Mahmood, 2018) When a company expands longitudinally, it is

looking to increase its size, broaden its product or services, reduce costs, avoid competition, or

gain access to new customers or areas. To do so, one firm acquires another similar-sized and-

operating organization in almost the same market. Supply chain strategy may be seen in Disney's

purchase of Pixar and Twitter's acquisitions of Facebook.

Vertical Integration with Example

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Running head: OPERATIONAL MANAGEMENT Operational Management Student’s Name Institutional Affiliation 1 OPERATIONAL MANAGEMENT 2 Supply Chain Management Definition A supply chain management system is the process of looking at the supply chain as a whole to coordinate and improve the system's overall flow. The actual flow of supplies, services, finance, and information from raw material suppliers to the manufacturer to wholesaler to retailer till the product reaches the consumer is referred to as the supply chain. The ultimate goal of a sound SCM system is to reduce inventory while keeping products available when they are needed. Creating net value, establishing a competitive infrastructure, leveraging logistics, and assessing performance are all tasks that must complete. (Lu, 2018) All of these items are beneficial to the company's operations. Corporations that buy a comparable firm in almost the same business are called horizontally integrated, whereas corporations that buy a business that operates in the manufacturing process within a day of the purchasing organization are deemed vertically integrated. Horizontal Integration with Example Horizontal integration is the absor ...
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Tags: scm Corporations Horizontal Integration