Analyse relations of power among actors in a supply chain of your Essay

Analyse relations of power among actors in a supply chain of your choice - Essay Example A supply chain involves all processes that receive and fulfill the customer request. The functions of a supply chain include marketing, operation, product development, distribution, customer service and finance. This paper seeks to analyze the relations of power among actors in the Wal-Mart supply chain. The success of a business lies in the management of the actors involved in the supply chain. This results in the achievement of improved value to consumers. The most profound challenge in a supply chain is the challenge of wastage. The Wal-Mart supply chain is committed to deliver exceptional value to customers. The management of the supply chain is committed to constructing an efficient and responsive supply chain by harmonizing the relations of power among the actors within it. The market place develops a competition of supply chains (Sehgal 2011). The strategic approach to the supply chain is to ensure the activities within the players are harmonized. The strategic approach to Wal -Mart supply chain The company has invested in core-competences among the players in the supply chain. Wal-Mart is estimated to have 90, 000 suppliers. About 200 of them are global suppliers e.g. Nestle, Kraft, Unilever and P&G. The actors of the supply chain face competition when passing value to the consumers (Dicker 2005). The companies are expected to deliberate on their role in the Wal-Mart supply chain. ... Wal-Mart supply chain actors have constructed strategies that allow them to remain competitive. Wal-Mart is committed to finding its competitive advantage and outsourcing the non-core competencies. There are several functions done by multiple firms which are linked to the success of the supply chain. The supply chain is developed upon these strategic links (Seifert 2003). However, the fragmentation of the production process for Wal-Mart has increased the pressure for centralized coordination. The firm has an international present and is expanding to new markets. The supply chain must add value to the firm (Fishman 2006). The management of the Wal-Mart supply chain has recognized that the real competition is not between companies within the supply chain. Rather, it is the competition between supply chains (Dicker 2005). Therefore, Wal-Mart pays attention to the quality and competence of the players within the supply chain. The Wal-Mart retailers, suppliers and transporters work to ens ure that the process of chain execution is flawless, smooth to give the firm a competitive advantage. Research indicates that the company that manages its supply chain with excellence wins the largest market share. Importance of power and theory in supply chains Wal-Mart actors Power can be defined as the ability for a company to own and control resources and assets within supply chains and markets to ensure sustainability in accumulation of value and leveraging the other actors. The practitioners in the Wal-Mart supply chain must identify the most appropriate context before executing a plan. The modern business is changing from appropriating value for oneself to a commitment to passing value to the consumers. In Wal-Mart the supply chain commences