Supply Chain Managementquestions Flashcard
Generally the word supply chain management triggers the name of the most famous Wal-Mart in mind but supply chain business and management are not just related to the Wal-Mart. Supply chain management is basically an amalgamation of art and science that a company may adapt to improve the mechanism of processing (raw material to final deliverable) product.
However, In case of banking the meaning of supply chain management is a little different. In all financial institutions, Supply chain management means the delivery of critical information of the finance to their customers.The new concept of “Every thing, every where” has changed this scenario dramatically. Now customer demands everything under single click by the curtsey of ‘The Jinny’ – Internet. Precisely, the supply chain management today, in search of its survival, rather a better survival, has found its way in Internet with the birth of e-banking. Further the big trade institutions are now bridging the gap between global supply chain and finance chain by reconciliation of common standards to document and transfer of file.
According to Allan Beattie, Head of Supply Chain Services at HSBC, there are only two factors responsible for change in supply chain that are Globalization and Compliance. Basically changes in supply chains are due to some changes in corporate. Globalization demands meetings of CEOs and heads of finance, trade and treasury to work together while, to meet the needs of supply chains physically, logistics needs visibility and IT needs the hard document to go soft or e-documents. But all of these require constant diligence.
The change in supply chain can provide better opportunities for both banks and corporates. The management of supply chain is also painless, if only due attention is paid to mitigation. The futuristic focus of banks is to re-engage in servicing of corporates. Allan Beattie said that 60% of data in supply chains is common or re-used, re-keyed, re-entered, or re-validated. ” Banks should get speed up to enter in tier of supply chain by taking information feeds from systems and helping others to follow (SWIFT, 2006).The future of supply chain management is not very well defined right now but one thing is certain, CHANGE.
(Shister, 2006)A GLANCE AT FUTUREE-banking has brought a revolution in the world of trade and finance. Certainly there are risks. But there are also opportunities, and significant potential benefits for consumers, banks and regulators. All we need to see is the approaches we adapt are adequate to deal with the risks without getting in the way of the innovations and benefits that E-banking brings to firms and consumers.
Downfalls come and go, but the one who wins in the end, is the one who survives in all these difficult times. Probably FT and International Financial Corporation has realised it too soon. Therefore, HSBC has been named as overall winner in the first FT Sustainable Banking Awards, in recognition of its leadership in merging social, environmental and business objectives (HSBC – News Archives 2006). Coming to good position is difficult to achieve but it is far difficult to sustain it.According to forecast for the year 2007, this is the year of living dangerously, Lets wish Best Luck to HSBC with its management in all areas, especially security (World trade Magazine – The Fearless forecast, 2007).REFERENCESAmicus (2006).
Retrieved from: http://www. amicustheunion. org/Default. aspx? page=4345 Retrieved on: January 06, 2006. Published on August 03, 2006.
Bottomline Technologies (2006). Retrieved from: http://www. bottomline. co.
uk/news/press_releases/hsbc. html Retrieved on: January 05, 2007. Published on May 23, 2006.