Free Essay. Financial Management for the Supply Chain

The Financial Management for supply chains video by the APICS Greater North Jersey speaker is highly informative and gives a comprehensive insight into both worlds of finance and supply chain management. The speaker stresses the need to correlation and interdependence between the different departments of a business, as one of the key factors that contribute to an effective supply chain management system. The speaker highlights the function of different financial statements and their prerequisite actions, stemming from a supply chain e.g. buying of raw material from a manufacturer to the supply of goods to retailers or sale to end users. Further, he stresses the need to train and inform the staff managing a supply chain of an organization, of the financial importance of their activities. He adds that money is the lifeline of a business organization and that all activities that lead to its inflow should be closely monitored.

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As per the expert, supply chains are critical to maintaining the inflow and retention of money in an organization. If the processes within the supply chain are not streamlined and equated to their financial importance, then the organization will lose money. Furthermore, in agreement with (Dreckshage, 2016), the speaker necessitates the need for investment in employing the right personnel and acquisition of updated infrastructure, that aids the collaboration between supply chain processes and other financial activities.

From a reasonable clarification of major ideas to quick exchange of production network development, this video offers understudies and experts a far-reaching presentation with promptly appropriate comprehension. The store network supports the whole structure of assembling and retailing. Supplies chain management can enable an organization to turn into a worldwide behemoth or if not well managed, it can sink an organization before the item ever observes the light of day. the video explains that the production network includes many moving parts, always showing signs of change factors, and a system of different business that may have various needs and interests keeping everything running easily is a complex, however enormously ground-breaking expertise. This video, over and above, takes the viewers inside the production network to demonstrate to them what they have to know.

According to the video, the customary supplies chain in the executives' centers around the two materials and data stream. In any case, significant cost decreases can likewise be accomplished through ideally structured budgetary streams inside the chain. as the speaker narrates, the investment funds because of limited stock dimensions may effectively be balanced by the expenses to back the rest of the stock. Stock carrying expenses do not just include financing costs yet additionally of expenses related with assuming praise dangers upon deal and taking out protection

This collaboration should span across the organization, then externally to the retailers and the manufacturers, to make the efforts more effective. The proper groundwork which indorses fruitful partnership starts with the top management of a company, these officials are charged with the mandate of developing a collaborative approach/program that forms the framework of financially effective supply chains. The resulting initiative/program should have a managerial team, whose membership spans from staff in sales, finance, acquisitions and store operations for the retailer, whereas the manufacturer's end should have supply chain and merchandising staff.

References

APICS Greater North Jersey. (2015). Financial Management for the Supply Chain Professional. Accessed from https://www.youtube.com/watch?v=2mo6MECuQRA&authuser=0 on 10th June 2019.

Bill, K., & Brian, J. D. (2016). Lean Supply Chain Management Essentials: A Framework for Materials Managers: CRC Press. Boca Roton.