Discussion on Topics Related to Supply Chain Management

Discussion on Topics Related to Supply Chain Management


It refers to the business management function that entails identifying, sourcing and accessing external resources that are useful to the extent that the organization can fulfill its strategic objectives. Besides, the tasks involved in procurement include pre-contract activities, which are planning, goods and services identification and sourcing. The post-contract activities include contract and supply chain management, and product disposal (Sollish & Semanik, 2007). Ultimately, the general activities in procurement are corporate governance, risk management, supplier relationship management and risk compliance. The whole operation involves getting goods and services that will help the organization to function and it will stop once the company receives the goods and services. The benefits that an organization receives from procurement include reduced cost for the goods and services, increased efficiency, security of supply, innovation, and improved quality (Sollish & Semanik, 2007).

Supply Chain Uncertainty

The term refers to decision-making circumstances whereby the decision-maker in a supply chain could not make a decision due to being indistinct about the objectives. It could include inadequate information on the supply chain, processing capacities or effective control actions (Simangunsong, Hendry & Stevenson, 2012). Similarly, the decision-maker might be unable to provide an accurate prediction of the effects of the possible control actions. The uncertainty management strategies that an organization can employ include the following. The organization can decide to use reducing uncertainty strategies that will help to eliminate uncertainty at the source. For instance, incentives or proper pricing strategy: this will help to reduce customer demand fluctuation. Also, we have coping with uncertainty strategy. It helps the organization to adapt to uncertainty by minimizing the impact. The main sources of uncertainty are the focal company, internal supply-chain uncertainty, and external uncertainties (Simangunsong, Hendry & Stevenson, 2012).

Risk Management

It refers to the technique that involves identifying, analyzing, assessing, handling and controlling uncertainty in investment. On the same note, supply chain risk management entails strategies and measures, knowledge, institutions and technologies that can be used to lessen the supply chain risk (Kersten, & Bemeleit, 2006). In the supply chain, the process of risk management occurs at the company level and supply chain level. It is because a single company cannot manage and control all these risks and therefore, it would be significant if the process were repeated at the supply chain level. The risk handling strategies that organizations can use include the following. First, risk bearing refers to the strategy that companies use to reduce the impact of risk. Second, risk avoidance entails applying the strategy that will lessen the probability of risk occurrence (Kersten, & Bemeleit, 2006). Lastly, risk transfer refers to using strategies that will help in control or avoid risk by transferring the potential impact of the risk to other organizations.



Kersten, W., & Bemeleit, B. (2006). Managing risks in supply chains: How to build reliable collaboration in logistics. (Managing risks in supply chains.) Berlin: Erich Schmidt.

Simangunsong, E., Hendry, L. C., & Stevenson, M. (2012). Supply-chain uncertainty: a review and theoretical foundation for future research. International Journal of Production Research, 50(16), 4493-4523.

Sollish, F., & Semanik, J. (2007). The procurement and supply manager’s desk reference. Hoboken, N.J: John Wiley & Sons.

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