Application of Supply Chain Management in a Local Manufacturing Company and to Assess its Impacts On Performance of the Organization

Abstract

A supply chain consists of all stages involved directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers but also transporters, warehouses, retailers, and customers. A supply chain is dynamic by nature and involves the constant flow of information, products, and funds between different stages. Each stage of the supply chain performs processes and interacts with other stages of the supply chain. A good design, planning, and operations of supply chain management (SCM) can be a competitive advantage for business organization. In contrast, a bad design, planning, and operations of supply chain hurts the performance of the SCM. The key drivers of supply chain performance are identified as facilities, inventory, transportation, and information. A recent study implied that in many organizations the purchase content accounts up to 70 percent of the total cost which is much higher than that of the manufactured accounts. Therefore, the strategic significance of SCM function has become a major determinant both for competitiveness in market and for corporate profitability. The present study focused on SCM of a cable manufacturing company which manufactures different types of telecommunication cables for local network, subscribers line etc. The company presently meets the entire demand of BTTB and other agencies and thereby playing a vital roll to the national economy. Besides meeting local demand, it is also exporting its cables to Pakistan, Syria, Kuwait, Russia etc. The chief and most important raw material of the company is copper, which is imported from Australia, Korea etc. Here, we have shown a supply chain model for proper functioning of the supply chain. Among all drivers of supply chain model in BCSL, inventory decision is very important. Due to habitual and conventional inventory policy, BCSL is not much aware of supply chain management and maximum profitability. Situation could be improved further by applying proper supply chain management system and thereby implementing a proper decision in inventory policy or import policy for increase of profitability.