Supply chain management Essay Example | Topics and Well Written Essays - 750 words - 2

Supply chain management - Essay Example Big companies, for instance multinationals, normally have corporate purchasing departments and also local purchasing departments (Maskell 2003, p. 67). This implies that, at the HQs, they have a purchasing department, which directs the entire regulation to the local departments. Normally, the purchasing functions are just duplicated at every department meaning that there is a waste of resources. Some vendors, at times, even send incorrect information mistakenly because of the long flow of information from the headquarter to them. This incorrect information can also negatively affect the HQ as that make decisions based on incorrect information as it gets to them (Schonberger 2010, p. 51). What an organisation can do about this is reduce the number of levels that information takes to reach the local departments that deal one on one with the client. Like the way multinational organisations such as McDonalds have done (Schonberger 2010, p. 55). This can be done through incorporating tech nology which top decision makers can use to communicate with the locals instead of having other departments in the middle. These new technology can assist the organisation in its procurement process, for instance, technology that allows internet based buying will allow the top managers to deal straight with the client. Lean management gained recognition in the manufacturing field because this is where vital enhancement can easily be achieved. The processes of manufacturing can be enhanced to significantly decrease waste and resources whereas supporting operational performance (MacInnes 2002, p. 25). Quality is a vital element of lean manufacturing. Having absolutely zero defects in the manufacturing process decreases waste and increases efficiency in the firm all together (MacInnes 2002, p. 25). With many clients not complaining about the goods, this will be a way of building