Strengths and Weaknesses of Mainstream Supply Chains Essay

Strengths and Weaknesses of Mainstream Supply Chains - Essay Example As the report declares supply chain management is an essential component of the management tools of organizations dealing in the flow of goods and services. Value creation is important for organizations because the main objective for existence of companies is to make profits. It means that companies must design a competitive infrastructure through which all its supplies and products/services will flow. The ease of flow of which products/services from the manufacturers to the final consumer is tantamount to the efficiency, and largely the profitability, of such manufacturers. According to the research findings conversely, the manufacturers or service providers must design an efficient infrastructure through which raw materials flow from the supplies. Besides the suppliers and the final consumers of products and services, supply chains involve many other entities, who either create value or facilitate the movement of products and services across the supply chain. Accordingly, organizations employ supply chain management as a means of ensuring smooth flow of raw materials from the suppliers and efficiency in delivery of products/services to the end customers. The logistics of supply chain management increase tremendously when it comes to international businesses. The global context of the supply chain involves many middle parties from across the globe. As a result, Global Production Networks (GPN) becomes inevitable, particularly for multinationals with subsidiaries in far-flung countries where the supplies do not have a base.