Chapter 1

Question 1

Supply Chain Management

Answer 1

“The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technological resources are critical to successful supply chain integration.”

Question 2

Differences between Manufacturing and Services Organizations

Answer 2

Manufacturing

• The largest portion of needs is generated by customer needs.
• The largest portion of spend with suppliers will be on direct requirements which comprise products sold to customers.

Supplier Management

• The largest portion of needs is generated by capital, services and other requirements enabling employees to provide the service.
• In retailing the largest spend is focused on re-sale requirements. Total cost improvement