Supply Chain Management Essay Example | Topics and Well Written Essays - 1500 words - 1

Supply Chain Management - Essay drillThus, the concept as well as the process of SCM encapsulates all the methods and procedures needed for the comprehensive configuration, planning and concur of cross business and company wide supply chains (Thaler, 1999 Walther and Bund, 2001). Among all the tools, unlike modes of transportation forms an underlying component, without which Supply chain cannot function and can even collapse. This was visible during the volcanic eruptions in Iceland in 2010. The change in the clouds impacted the air transportation, which not only affected the passenger traffic, but in addition the driving force of goods in the supply chain. The ash emitted by the Eyjafjallajokull volcano eruption in Iceland spread far and wide, curiously over many of the European countries, causing the closure of airspace and grounding of flights. British government unappealing the countrys entire airspace, grounding all flights at five airports, including the flights whose journeys originated elsewhere in Europe, North America and beyond and who would have only passed through Heathrow. (Walsh 2010). ... World container traffic in 1970 was virtually zero, today it is around calciferol million tons per year. (Short 2010). In addition, when there is need for quick transportation and delivery, air transportations are the scoop out option, and this is particularly relevant in the current times with the manufacturing supply chain being quickened through various processes. Icelands volcanic ash disrupted air transport across Europe and gave the worlds manufacturing supply chain one of its biggest tests since the advent of the low-inventory, just-in-time era (The Economist). The grounding of the flights impeded the flow of raw materials to the industries in Europe from all over the world, as well as vice-versa. In addition, the finished goods could not likewise reach the customers within the stipulated deadlines, in both the ways. These restrictions on the supply chain resulted in heavy losses to the involved organizations as well as the airlines industry. The International Air Transport Association (IATA) estimated that due to wrack of the supply chains as well as passenger traffic, airline industry lost at least $200 million per day (Banham 2010). This type of disruptions not only affects the major players but also the small local players in the supply chain, particularly the small retailers who sell the finished products to the customers. This can be seen during the Icelandic volcanic eruptions as well. That is, many retailers located in the UK and other European regions were affected by the lack of supplies and also delayed supplies. With many retailers not receiving the goods needed to keep their stores in stock, it conduct to