Supply Chain Management Essay Example | Topics and Well Written Essays - 250 words - 1

Supply Chain Management - Essay Example The UN through the World Health Organization ensures that the malaria drugs reaches its intended destination by coordinating with the local governments to enable an efficient and effective supply chain that is less costly (Chopra & Meindl, 2007). A system is developed that assists in coordination between pharmaceutical manufacturers and procurement agents. The system ensures cost-effectiveness and transparency in the shipment, procurement and drugs delivery. The local government develops capacities including warehousing, distribution and delivery of the drugs to patients. So as to reduce the amount of inventory being held, the just in time (JIT) approach is used and it ensures problems do not come up because of managing large inventories. Inventory management is important in the reduction of the cost of running the supply chain. The malaria supply chain faces a number of challenges in its operation ranging from missing coordination, Inventory management, expiration of drugs due to delays and order management problems. The above mentioned operational challenges facing the supply chain are costly. So as to eliminate or reduce this cost, emphasis must on the implementation of a strategic cost management. It enables the carrying out of cost analysis techniques. The strategy should be focused at standardization of supplies, reduction of inventory, centralized purchasing, and labor automation (Turney,