Supply Chain Management & Inventory

Surname and initials: Makgai Walter

Surname and initials: Makgai NWS

Student number: 25807609

Individual submission: Contact session 5:

Topic(s): Supply Chain Management & Inventory Management

Name (pseudonym) of my organisation:   Nkangala District Municipality (NDM)

Nature of business: Local Government-District Municipality

I declare that this submission is my own work: Walter Makgai (25807609)

By submitting this on eFundi, I declare that this submission is my own work

This submission covers the previous two contact sessions (A and B): Theory of contact A has been submitted during the previous contact session. Summary of the theory (contact session B).

The Nkangala District Municipality (DC31) is one of the three (3) District municipalities in Mpumalanga Province. NDM plays a key role in performing the main priority of supporting its municipalities especially in rural areas of the country where local municipalities are relatively weak and lack capacity. It is also contributes to the furtherance of developmental local government. NDM has committed itself towards paying particular attention to the following:

Build local economies to create more employment, decent work and sustainable livelihoods

Improve local public service and broaden access to them;

Build more united, non-racial, integrated and safer communities;

Promote more active community participation in local government;

Ensure more effective, accountable and clean local government that works together with national and provincial government.

By submitting this on eFundi, I declare that this submission is my own work

Summary of the theory (How I understand the essence of the theory). (Only one page, but including diagrams could take you to two pages!!!)

Supply Chain Management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them to customers. These do include purchasing and outsourcing activities, plus many other functions that are important to the relationship with suppliers and distributors.

Supply Chain includes determining the following components; transportation vendors, credit and cash transfers, suppliers, distributors, accounts payable and receivable, warehousing and inventory, order fulfilment, sharing customer, forecasting and production information. The main objective of SCM is to build a chain of suppliers that focuses on maximising value to the ultimate customer. Supply chain strives to increase their competitiveness via product customisation, high quality, cost reductions and speed to market. It makes suppliers “partners” in the firm’s strategy to satisfy an ever-increasing marketplace.

Characteristics of Supply Chain Management; designed to optimise the factors of material cost, quality and service, includes ongoing monitoring and research into the organisation’s supply environment, collaborates with the Information Technology function to develop a data management system, which facilitates strategic planning, etc. Activities of supply chain managers cut across accounting, finance, marketing, and the operations discipline. Furthermore, Supply Chain must support the Operations Management strategy of the any firm.