Effective Markets Penetrating During Rise in Competition of Global Businesses - Paper Example

INTRODUCTION

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Handlers of Supply chain and managers ambitious to achieve wholly integrated and working chains of supply which should have the capability to creating and maintaining competitive advantage. The companies should aim at balancing the pressure due to the downward cost and the general requirement for efficient methods coupled up with effective means required in managing the needs of service expectations that drive the market and the risks involved whenever there is failure of supply chain CITATION Mar041 \l 1033 (Lee, 2004). It is however important to note that we are currently living in an error where there is lengthening of supply chains which serve global operations and this generally causes difficulty in developing predictions considering the vast changing world. Natural disasters and war have brought about major shifts and general disruptions to the supply chain as a whole globally CITATION Mar04 \l 1033 (Peck, 2004). Considering the fact that the modern commercial supply chains are actually quite dynamic in their network set up, no organization today is an island because of the vastness in the interconnections of these firms and organizations.

In most cases, lean thinking is mainly applied in the manufacturing process. However, it is important to note that the lean techniques are applicable in various processes where there is the need for improvement, and this includes in the supply chain. An ideal lean supply chain is the one whereby the supplier will produce the product or service that is needed by the consumer. The supplier will also provide the right quantity that is needed by the consumer, at an ideal time, and where the product that is produced is needed. A lean principle is a systematic approach whereby the supplier will take the necessary measures of eliminating waste so that in every step during the process of supply adds value in the customers perspective.

1.1 BACKGROUND

Due to the rise in competition of global businesses, quite a number of organizations are on the search for different ways that will help them be ahead of their competitors within their niches apart from being in consideration of businesses that arise daily and penetrate markets quite effectively. According to Vonderembse, competition has changed from orientation of company to orientation of supply network, hence necessitating the need to improve the supply network to ensure survival. For organizations to get ahead of their competitors, researchers have advised them to implement a lean in their supply chain (Cudney and Elrod, 2011; Oliver, 1993; Taylor, 2006; Womack and Jones, 1994). Agus and Hajinoor (2012) suggested that implementing lean is the core for effective management of supply chains. There exist quite a substantial number of case studies that are based on showing how the implementation of lean within the supply chain handling has brought about drastic and vast improvements to the supply chains according to Eriksson, and On extension the lean supply chain management, which was conceptualized and previously placed in the automotive industries inclusive of the shop floor operations, it is needless to say that in the current world, the entire supply chain inclusive of all other industrial sectors require extensive research and adaptation of the concept. Hines also suggests that the lean technique is on a rapid evolution as a suggestion and is spreading rapidly within the scope of study of management of supply chain thus entirely puts emphasis on the importance of having detailed knowledge and understanding of this area, lean within supply chain management approach.

There are already quite a vast number of studies being conducted which basically aim at further widening the knowledge on the various aspects related to lean and supply chain management. The researches aim at developing understanding on how there can be an extension of the lean suggestions that have been acknowledge overly as to being a fruitful approach within the shop floors of the automotive industries and have it extended to the other industry sectors which will be far beyond the shop floors. The adoption of the lean management through the supply chain is an enigma for many companies that implement lean in some areas of their supply chain

Resources are essential in accomplishing organizational goals. There are, however, risks or problems that are brought by due to the unproductive use of resources which could be the use of wrong resources, lack of utilization of necessary resources or even using resources for a wrong process or output. All these circumstances will end up causing the creation of waste. This will entirely lead to the occurrence of unwanted costs, consumption of necessary time, loss of value creation opportunities and growth and even worse will be leading to consumer dissatisfaction. The first step to lean thinking is to understand what value is and the different activities and resources that are important in the creation of value. Once there is a deep understanding on value, then what is left out is considered waste. The lean principle focus is essential in creating value because; it will specify the value about the way the customer views value. It will determine the appropriate value system by identifying the value stream and challenging all the necessary steps that are to be considered in this system. It also lines up value and creates the necessary steps that are required. This is essential because the supplier will know all the sequences that are needed for the process of supply to be successful. Therefore, it will reduce the aspect of time wasting. The supplier will use the principle focus to ensure better service delivery to the customers through deriving the information from the customers. Also, they will make an effort to improve continuously to reduce and also eliminate waste.

When one is talking about the value stream, it focuses on the value-adding activities that will normally be required to facilitate the design, order and provide the required product from when it is launched, until when it will be delivered to the customer. To develop an efficient value stream map for a certain product, it is important to note the product that will be supplied or produced. The next step is to collect all the required process information. Then it will be important to develop the current-state map that notes the sequence and the information flows. The current-state map will normally provide a clear picture regarding the process steps for the supply process. The current state map normally includes the product flow of the supply product, the transportation links that will be used, defects, delivery time, and the information flow. As this is a value-adding activity, the supplier or the user of the lean technique will search the map to note the improvement opportunities that exist and then create a more refined map known as the future-state map. The importance of the future map is that it helps the user to be in a better position and then visualize the roadmap that he will use to improve his activities from the now to future.

On applying lean thinking, it focuses on ensuring that the producer or supplier can use fewer resources than the rival producers or suppliers; while at the same time ensuring that the customer will receive the product that he or she wanted. For an organization to...