The Importance Of Supply Chain Management In Chemical Industry
In terms of chemical industry, the supply chain management is in the phase of transition. The main purpose of supply chain management is to balance the cost of supply chain, which occurs against the service levels of customers. This takes place in ordered to assist the businesses in delivering against volume and sales targets. Supply chain management is given high priority by all the corporations functioning in the chemical industry. It is noticed that various challenges are faced by the organizations in terms of supply chain management within chemical industry. With the help of professional management of supply chain, the organizations in this industry can reduce cost, increase the level of productivity, increase safety, and improve satisfaction …show more content…
• How supply chain disruption risks can be minimized in the chemical industry?
Literature Review
It is noted that the idea of supply chain management has been extensively acknowledged and practice in the daily activities by the large-scale organizations. Moreover, in the late-nineteenth century most of the large firms, which are consider as multinational corporations that have started to execute the supply chain concept in their daily business activities in order to expand their business viably. According to Foerstl, Reuter, Hartmann, & Blome (2010), most of the organizations particularly multinational firms have started the incorporation of SCM in their job
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However, it is a prior duty of the top officials of an organization that they must consider all possible hurdles that affect the supply chain activities in a negative manner for the reason that it would create problems for them to attain their set goals and objectives. It is observed that a supply chain includes all actions that convoluted in sourcing and procurement, transformation, and logistics (Reuter, Foerstl, Hartmann, & Blome, 2010). Moreover, the chemical organization supply chains might range from being reasonably short and guileless to extremely difficult. Furthermore, the raw materials at times be found in a producer’s back yard, or they might require to be obtained from distant and risky areas of the world. However, the number of suppliers and raw materials might vary extensively from organization to organization dependent on the terrestrial assortment of activities and consumers, the difficulty of the product line, and the accessibility of raw materials. In addition, materials might have to move thousands of miles by different mode of transportation in order to reach their
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