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The Challenges of Managing a Supply Chain

Compare the most significant challenges of managing the supply chain for a manufacturing company to that of a service company, and determine which is the most challenging to manage effectively. Provide specific examples to support the response.

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Supply chain management challenges

Manufacturing company:

Kenneth et al (2009) provide that manufacturing companies face the challenge of lacking a measured readiness production function at the unit stage and these results in uncertainty and causes variability to be exhibited at the point of consumption. This can result in inadequate planning and budgeting thus the company does not achieve objectives. Failure to appropriately organize operations in wholesale stage depot repair leads to the creation of gap in critical repair capacity. Inadequate management of the manufacturing process can lead to cycles of boom and bust characterized by long lead times, price volatility, and increased business risk.

According SCDigest Editorial Staff (2010), increase in volatility and uncertainty in the supply chain affects manufacturing companies. Increased price sensitivity and market transparency means volatility has high impact on companies as customers find alternative ...

Solution Summary

Using examples and 551 words with 3 references, the solution outlines significant challenges of managing a supply chain.