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Essay / Introduction to Supply Chain Management - 1203
As soon as an idea turns into a project, the organization of the supply chain becomes essential to provide quality service to the customer but at a cost minimal for the company involved. Vertical interpretation is necessary to deal with various constraints that arise at different stages of the project with the aim of reducing problems and increasing efficiency. Throughout this article, the author will describe how supply chain management (SCM) helps bring systems together to present a desirable outcome as well as the issues and practicalities that are involved. John Hicks (2004) suggests that there are three main methods to help deliver systems within budget and to make them work properly, these are called 'runners, repeaters and aliens'. These methods require different inventory, storage and production strategies to maximize turnover. "Runners" are used when the basic manufactured goods are continuous and constitute the majority of the production volume during a given period. This supply chain will focus on component cost, quality and supplier delivery performance. The “outsiders” supply chain is different because it must be prepared to meet irregular customer orders and there will be more emphasis on supplier delivery times and the ability to meet these hard-to-predict demands. “Repeaters” are a supply chain that requires a mix of regular manufactured products, but with the flexibility aspect of the customer still involved. This system uses the storage of goods and materials, which allows for maximum efficiency. Customer service is essential to supply chain success and customer demands and needs must be met to a high standard. A good relationship with the buyer will help resolve any issues that arise and increase the chances of b...... middle of paper ......, 1st ed. Oxfordshire, Keith Day Printers. Jepersen B. D, Skjott-Larsen T (2005) Supply Chain Management: in theory and practice, 1st edn. Denmark, Holbaek Amts Bogtrykkeri.Johnson G, Scholes K, Whittington R (2008) Exploring Corporate Strategy, 8th edn. Essex, Pearson Education Limited. Marakas GM, O'Brien J.A (2009) Management Information Systems, 9th edn. New York, McGraw-Hill/Irwin.Porter ME (1985) Competitive advantage: creating and sustaining superior performance, 1st edn. New York, The Free Press.Proven Models (2011) Value Chain Analysis [Internet], available at: [Accessed March 9, 2011].RICS (2011) The construction sectors and the roles of the chartered quantity surveyor [Internet], available on: [Consulted March 9 2011].