TASK: ASSIGNMENT

NAME: DERRICK ACHOKI

UNIT: PURCHASING AND SUPPLY CHAIN STRATEGY

REG NO: HDE121-C006-0179/2022

HUMAN RESOURCE MANAGEMENT IN SUPPLY CHAIN:

Supply chain management is the process of managing and coordinating all activities involved in the
production and delivery of goods and services, from the sourcing of raw materials to the delivery of
finished products to customers. Supply chain management involves the integration of suppliers,
manufacturers, distributors, retailers, and customers, and it aims to optimize the flow of goods and
services while minimizing costs and maximizing value.
SCM INVOLVES SEVERAL KEY ACTIVITIES, INCLUDING:
1. Planning: Forecasting demand, developing procurement plans, and creating production schedules.
2. Manufacturing: Transforming raw materials into finished products through various stages of
production, such as assembly, testing, and packaging.
3. Delivery: Transporting products and services to customers using various modes of transportation,
such as trucks, trains, ships, and aeroplane
4. Customer Service: Providing support to customers before, during, and after the sale to enhance
customer satisfaction and build loyalty.
5. Sourcing: The second step in SCM is sourcing, which involves identifying and selecting suppliers,
negotiating contracts, and managing relationships with suppliers. Sourcing helps
SUPPLY CHAIN MANAGEMENT IS IMPORTANT FOR SEVERAL REASONS :
1. Improved Efficiency: SCM helps to streamline the flow of goods and services from suppliers to
customers, reducing lead times, and increasing efficiency. By optimizing the supply chain,
organisations can reduce costs, increase productivity, and improve profitability.
2. Risk Management: SCM helps organisations to identify and mitigate risks in the supply chain, such
as supply disruptions, quality issues, and delivery delays. Effective risk management strategies can
help organisations to minimize the impact of supply chain disruptions and reduce the risk of financial
losses.
3. Innovation: SCM can drive innovation by facilitating collaboration between suppliers,
manufacturers, and customers. By sharing knowledge and ideas, organisations can develop new
products and services, improve existing ones, and create value for their customers and stakeholders.
4. Sustainability: SCM can contribute to sustainability by promoting ethical and environmentally
responsible practices throughout the supply chain. By minimizing waste, reducing carbon emissions,
and promoting social responsibility, organisations can improve reputation, reduce costs, and enhance
their competitive position in the market
KEY FEATURES OF EFFECTIVE SUPPLY CHAIN MANAGEMENT
Effective supply chain management (SCM) is critical to the success of any organisation that relies on
a complex network of suppliers, manufacturers, distributors, and retailers to deliver products and
services to customers. Here are some key features of effective supply chain management:
1. Integration: Effective SCM requires the integration of all activities involved in the supply chain,
including planning, sourcing, manufacturing, delivery, and customer service. Block chain Integration
enables organisations to optimize their supply chain operations and achieve better alignment between
their business goals and supply chain objectives.
2. Collaboration: Effective SCM involves collaboration between different stakeholders in the supply
chain, including suppliers, manufacturers, distributors, and retailers. Collaboration helps to improve
communication, reduce lead times, and enhance overall supply chain efficiency.
3. Visibility: Effective SCM requires visibility into all aspects of the supply chain, including inventory
levels, production schedules, delivery times, and customer demand. Visibility enables organisations to
identify and address supply chain issues in real-time, reducing the risk of disruptions and delays.
4. Flexibility: Effective SCM requires flexibility to respond to changing customer demands, market
conditions, and supply chain disruptions. Flexibility enables organisations to adapt quickly to changing
circumstances and minimize the impact of disruptions on their supply chain operations.
5. Risk Management: Effective SCM requires effective risk management strategies to mitigate the
impact of supply chain disruptions, such as natural disasters, political instability, and supplier
bankruptcies. Risk management helps organisations to minimize the impact of disruptions on their
supply chain operations and reduce the risk of financial losses.
6. Technology: Effective SCM requires the use of technology to automate processes, improve
visibility, and enhance collaboration. Technology such as supply chain management software, RFID
tags, and GPS tracking can help organisations to optimize their supply chain operations and improve
efficiency.
7. Performance Management: Effective SCM requires effective performance management processes
to monitor and measure supply chain performance, identify areas for improvement, and provide
feedback for continuous improvement. Performance management helps organisations to optimize
their supply chain operations and achieve better alignment with their business goals.
HUMAN RESOURCE MANAGEMENT IN SUPPLY CHAIN
Human Resource Management (HRM) in Supply Chain is the process of effectively managing the
human resources involved in the supply chain management function. It involves the recruitment,
selection, training, development, and retention of employees who are responsible for the planning,
sourcing, manufacturing, delivery, and customer service aspects of the supply chain. HRM in supply
chain is crucial because the success of supply chain management depends on the people who are
involved in it.
Effective HRM in supply chain involves identifying the right talent, providing training and development
opportunities to enhance their skills and knowledge, creating a positive work culture, and ensuring
that the employees are engaged and motivated to perform at their best. This helps organisations to
achieve their supply chain objectives such as increasing efficiency, reducing costs, improving quality,
and enhancing customer satisfaction
CHALLENGES AND SOLUTIONS
HRM in supply chain also involves managing the relationships between suppliers, vendors,
manufacturers, and customers. This includes ensuring that the suppliers are reliable and deliver
goods and services on time, managing the logistics and transportation processes, and providing
excellent customer service. Effective HRM in the supply chain helps organisations to build strong
relationships with their stakeholders and create a competitive advantage in the market.
CHALLENGES:
1. Shortage of skilled labour: One of the biggest challenges organisations face is the shortage of
skilled and experienced professionals in the supply chain industry. This shortage has been
exacerbated by the retirement of baby boomers and the lack of interest among younger generations
to pursue a career in supply chain.
2. Global Workforce: Supply chain operations often involve a global workforce with different cultural
backgrounds, languages, and work styles. Managing such a diverse workforce can be challenging
and requires special skills and expertise.
3. Lack of Training and Development: Many organisations do not provide adequate training and
development opportunities to their supply chain staff, leading to skill gaps and lower productivity.
4. Turnover: High turnover rates can negatively impact supply chain operations, resulting in lower
productivity, increased costs, and reduced customer satisfaction.
Solutions:
1. Attracting and Retaining Talent: Organisations need to develop and implement effective strategies
to attract and retain talent in the supply chain industry. These strategies could include competitive
compensation packages, career development opportunities, and a positive work culture.
2. Cross-Cultural Training: Organisations should provide cross-cultural training to their supply chain
staff to help them understand and appreciate different cultures and work styles. This will improve
communication, collaboration, and teamwork.
3. Training and Development: Providing regular training and development opportunities to supply
chain staff will enhance their skills and knowledge and enable them to perform their roles more
effectively. This could include on-the-job training, online courses, and mentorship programs.
4. Employee Engagement: Organisations need to create a positive work culture and engage their
supply chain staff in decision-making processes. This will help to improve employee morale and
reduce turnover rates.
5. Performance Management: Effective performance management processes can help organisations
identify and address performance issues, recognize top performers, and provide feedback for
improvement.
Essential Skills for Supply Chain Management

1. Communication: Effective communication skills are essential in supply chain management,

including the ability to communicate with suppliers, customers, and other stakeholders. Competency
levels can range from basic communication skills to advanced skills such as negotiation, conflict
resolution, and stakeholder management.
2. Problem-solving: Supply chain management involves dealing with complex issues that require
effective problem-solving skills. Competency levels can range from basic problem-solving skills to
advanced skills such as data analysis, decision-making, and risk management.
3. Time management: Managing time effectively is critical in supply chain management, including
managing delivery schedules, handling unexpected delays, and ensuring that goods are delivered on
time. Competency levels can range from basic time management skills to advanced skills such as
resource allocation, project management, and prioritization.
4. Leadership: Supply chain management requires effective leadership skills, including the ability to
motivate and manage teams, set goals and objectives, and communicate effectively. Competency
levels can range from basic leadership skills to advanced skills such as strategic planning, change
management, and team building.
Essential Knowledge for Supply Chain Management
1. Logistics and Transportation: Understanding logistics and transportation is crucial in supply chain
management, including knowledge of transportation modes, freight forwarding, customs clearance,
and warehouse management.
2. Procurement: Knowledge of procurement is critical in supply chain management, including the
ability to manage supplier relationships, negotiate contracts, and manage inventory levels.
3. Operations Management: Knowledge of operations management is essential in supply chain
management, including understanding production processes, quality control, and lean management
principles.
4. Supply Chain Strategy: Knowledge of supply chain strategy is vital in supply chain management,
including understanding supply chain design, risk management, and sustainability.
Supply Chain Leadership: Choose the right style!
Leadership is all about people aiming to create direction, alignment and commitment within a team. In
the supply chain leadership needs to be shared.
Direction needs to provide aim, mission, vision or goals for the teams work. Alignment is about the
organisation and coordination of knowledge and work, finally commitment is about facilitating mutual
commitment to the Direction.
Three leadership Styles
1 AUTHORITARIAN STYLE - with authoritarian leadership style one can set a specific expectation
and define strict outcome. With this kind of style one person is generally in charge of the all group
rather than delegating leadership roles to others. This type of style can be helpful when the leader has
the most knowledge to achieve goals.
2 DEMOCRATIC STYLE – the whole team communicates their ideas and has the say on the direction
of a project but thee leader will make the final decisions. A democratic leadership style can be
incredibly effective in many solutions
3.TRANSACTIONAL STYLE – a transactional leadership style occurs when a leader uses positive or
negative reinforcement such as reward or punishment to encourage team members to complete task.
The leader will set defined goals or task to establish incentives for team members who meet their
goals
Training
Why is training for logistics and supply chain management important?
Most would think that managing freight from point to point is cut and dry however the very nature of
the industry is continually met with challenges that organizations must be ready to meet. Whether
we’re talking about the management of global supply chains from raw materials to the final product or
the warehousing and transportation of those from a third-party logistics standpoint, the industry as a
whole isn’t immune to change. New transportation systems, software technologies, trends, and
networks, all pose opportunities for organizations to gain an advantage over competitors. Logistics
businesses are always looking for new and efficient ways to deliver more freight on time.
Training courses for SCM and logistics professionals usually encompass an understanding of the
different software implemented and an understanding of practical methods in freight shipping and
management. Common courses supply chain professionals take usually include:
1. Warehouse Management System (WMS) software
2. Freight forwarding and planning
3. Trade lane management
4. Route optimization
5. Transportation management system
6. Enterprise Resource Planning (ERP) system
7. Production and Inventory Management
8. Logistics, Transportation, and Distribution
Reward system, motivation and communication
After a company has designed and implemented a systematic performance appraisal system and provided
adequate feedback to employee, the next step is to consider how to tie available corporate reward to the
outcome of the appraisal. Behavioral research consistently demonstrate that performance levels are highest
when rewards are contingent upon performance

FUNCTIONS OF REWARD SYSTEM

1: job effort and performance – efforts and performance would be expected to increase when they felt that
reward were contingent upon good performance. Hence system serve as a very basic motivational function

2: Attendance and retention – reward system as also shown that it can influence the employee his decision to
come to work or to remain with the organization

3: employee commitment to the organization – reward system is a small way to influence employee
commitment to the organization , thus employees develop tis with organization when they perceive that the
organization are interested on their welfare and willing to protect their interest

4: job satisfaction – satisfaction is influenced by comparison with what happens to others especially coworker

WAYS TO REWARD YOUR EMPLOYEE

1: involve all employees in the development, implementation, and revision of reward program by involving
employee or representative from different position will encourage communication between employee and
management about the reward process.

2: ensure that the employee review the reward as the effort including the employee in the development
process of the reward program is critical to ensuring that they value the reward and see them as worth effort

3: make sure that employee understand how earn the rewards, managers should clearly delineate how
employees can earn rewards. When employee have a comprehensive understanding of what is expected of
them they will be more capable of achieving performance standards.

4: always link reward to the performance since for the reward to have the most impact influence, they must be
directly linked to the desired behavior

5: recognize small and large achievements employees should be recognized when they meet large and small
goals for this will ensure that they receive recognition for their progress and that their behavior is consistent
with the company expectation.

STAFFING AND RECRUITMENT

Staffing is a process of recruiting employees who are eligible for a certain position in the company.

STEPS INVOLVED IN STAFFING

1: MAN POWER PLANNING: can be regarded as the quantitative and qualitative measurement of labor force
required in an enterprise
2: RECRUITMENT: is the process of searching for perspective employees and stimulating them to apply for jobs
in the organization.it stands for finding the source from where potential employees will be selected

3: SELECTION: Is the process of eliminating those who appear unpromising, the purpose fir this selection
process is to determine whether candidate is suitable for the employment in the organization or not.

4: PLACEMENT: placement means putting the person on the job for which is selected it includes introducing
the employee to the job his selected for

5: TRAINING: after selection of employee the important part the program is to provide training for the new
employees. With various technological changes, the need for training employees is being increased to keep the
employees in touch with the various new development

6: DEVELOPMENT: a sound staffing policy provides for the introduction of the planned promotion in every
organization, if employee are not at all having suitable opportunities for their development and promotion
they are frustrated which affect their work

7: PROMOTION: the process of promotion implies that the up-gradation of the employees to the higher post
involving increasing the rank, prestige and responsibility

8: TRANSFER: it means that the movement of employees from one department to another without increment
in pay, status or responsibility. Therefore these process of staffing needs to be evaluated on a timely basis

9: APPAISAL: this is how efficiently the subordinate is performing a job and also to know is attitude and other
qualities necessary foe perfuming the job assigned to him

10: DETERMINATION OF REMUNERFVATION: this is the last process which is very crucial as it involves in
determining remuneration which is one the most difficult function of the personnel department because they
are no definite or exact means to determine correct wages

BENEFITS OF STAFFING PROCESS

1 staffing process help in getting the right people for the right job at the right time, the function of staffing
helps the organization to decide number of employees needed for the organization and wit what qualification

2 it helps to improve organizational productivity, therefore through proper selection of employees in an

organization it can increase the quality of the employees, and the performance level of the employees can also
be increased

3 it help provide job satisfaction to the employees and thus keeps their morale high with proper training and
development programmer the employee get motivated and their efficiency improves.

4 it maintains Harmon in the organization