Supply Chain Network Design Considerations

Topic: Logistics
Words: 884 Pages: 3


For any sector, conceptualizing an effective supply chain system requires taking all pertinent elements into account. This includes commodity, demand, operation, innovation, expenses, surrounding world, variables, and their effects, and assessing alternative contexts that best serve one’s unique business needs. It is crucial to understand that a company’s network affects the effectiveness of its distribution network and consumer happiness. The network must meet the organization’s ultimate strategic goals to create the best supply chain network. A schematic system design affects most of a company’s operational or strategic entities.


In general, people perceive water to be a common substance. Water has long been viewed as a cheap and constant resource compared to other factors. While it was simpler to get board-level support for actions to promote sustainability for issues that had a significant influence on profitability and losses, such as the use of fossil energy, water is now an exceedingly challenging concern for organizations (Xu et al., 2021). Water is ranked seventh and enormously due to the inherent difficulties and lack of openness in worldwide supply chains, as well as additional difficulties brought on by variations in sourcing arrangements between businesses. It is impossible to overestimate the significance of water to societal and individual well-being, given its significance for life as we know it and for sustained financial growth (Xu et al., 2021). Businesses’ sustainability objectives must prioritize making the commercial case for shift more. Since water is no longer as reliable as it once was, large portions of the world are in danger of experiencing shortage or flooding.


Regulatory criteria are the rules and procedures of a supervisory authority. Among these are guidelines for how businesses must run their activities, strategies for certain commodities like environmental preservation, and legislation to safeguard customers from cartels or fraudulence. These requirements are ranked eighth by professionals in the supply chain. Numerous laws and rules apply to all industries, while others are specified to particular industries, with the environment playing a vital role in most. One example is that, while making up only 5% of the global population, Americans use over 25% of the commodities available to humanity (Gardner et al., 2019). Like other technological transformations, China’s rapid rise has been accompanied by significant environmental issues. Leaders in industries and government should think about the implications of these figures.


Compliance describes an organization’s conformity to rules and specifications related to each risk area throughout the supply chain continuity and its capacity to achieve or surpass consumer aspirations for material procurement, production, and transportation. Compliance is ranked ninth by professionals in the supply chain management industry. An efficient supply chain compliance framework makes proper control and awareness of the supply chain, which facilitates more efficient workflows and the transit of commodities (Gardner et al., 2019). It is possible to guarantee that regulatory compliance is upheld by performing thorough research on companies and using analysis to gain more profound information on them.

Supplier Relationships

Management of the relationships above is the methodical process of assessing suppliers who provide goods, resources, and activities to a business, figuring out how each provider contributes to profitability and coming up with plans to enhance productivity. Supplier relationships are ranked tenth. The domain aids in identifying the worth each vendor offers and which providers are most important for business effectiveness and sustainability (Sodhi & Tang, 2019). This criterion’s overall objective continues to simplify and enhance the procedures between the entity as a buyer of goods and services and the businesses that provide them.

Commodity Availability

A commodity is an essential item used in trade and can be exchanged for other items. Most of the time, commodities are utilized as raw materials to create other products or services. Therefore, a commodity is a fundamental resource to create complete goods (Sodhi & Tang, 2019). This consideration is ranked eleventh by professionals in the field. Contrarily, a product is the finalized good that is offered for sale to customers. Therefore, its accessibility is essential for the consumer’s welfare and the advancement of any firm. Since food is a necessity for human survival and a commodity, it must always be supplied to ensure the well-being of people.

Cross-Sale Requirements

Selling a consumer on comparable items is known as cross-selling. One of the best forms of advertisement is cross-selling. This consideration is ranked twelfth in the supply chain. Presenting clients more things to acquire is not cross-selling; it takes competence. A company must comprehend consumer habits, demands, and the value-adding functions of complementary items (Bowersox et al., 2020). Customers make purchases from companies they like and previously had success with. As a result, selling to an established client becomes simpler than doing so to a potential client (Bowersox et al., 2020). Customers who have already made a purchase are more inclined to buy things related to or enhance what they are currently planning to buy. Customers develop brand loyalty as they use more of a business’s items.


Giving the attributes mentioned earlier much consideration when dealing with the supply chain would ensure success for any business. All businesses look to achieve a more outstanding market given that their product or service is relevant to individuals generally. Therefore, as businesses look to progress financially and market-wise, they need to put more emphasis on the highlighted considerations.


Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2020). Supply Chain Logistics Management, (5th ed.). McGraw-Hill Education.

Gardner, T. A., Benzie, M., Börner, J., Dawkins, E., Fick, S., Garrett, R., Godar, J., Grimard, A., Lake, S., Larsen, R. K., Mardas, N., McDermott, C. L., Meyfroidt, P., Osbeck, M., Persson, M., Sembres, T., Suavet, C., Strassburg, B., Trevisan, A., … Wolvekamp, P. (2019). Transparency and sustainability in global commodity supply chains. World Development, 121, 163–177.

Sodhi, M. M. S., & Tang, C. S. (2019). Research opportunities in supply chain transparency. Production and Operations Management, 28(12), 2946–2959.

Xu, W., Zhong, Z., Proverbs, D., Xiong, S., & Zhang, Y. (2021). Enhancing the resilience of the management of water resources in the Agricultural Supply Chain. Water, 13(12), 1619.

Improving Business Logistics and Supply Chain Management Operations
Impact of COVID-19 on Global Supply Chain