supply chain management

Question 1

supply chain management

Answer 1

consists of a network of organisations. Together they
provide and process the necessary raw materials firstly into work in
progress and then into finished goods for distribution and sale to the end
customer.

Question 2

Supply chain management (SCM)

Answer 2

involves the co-ordination of activities
from the supplier(s) of raw materials at one end of the supply chain to the
customer at the other end.

Question 3

Organisation
structure

Answer 3

The choice of structure (centralised, decentralised or a mix of these) impacts control and interaction. It should
enhance rather than hinder supply strategy.

Question 4

Relationship with suppliers

Answer 4

can be:
* competitive (contractual) – based on price deals, or
* collaborative (relational) – a more positive
relationship based on a joint quest to reduce costs
and a sharing of technology and innovations to
improve quality

Question 5

Cost/benefit

Answer 5

Supply decisions should be based on benefits as well as
costs. Cost/benefit analysis should be at the heart of any
strategic decision.

Question 6

comprtencies

Answer 6

Do the skills exist to achieve the chosen strategy? For
example, the development of long term supplier relations
may lead to a need to retrain key personnel.

Question 7

performance measures

Answer 7

Necessary for monitoring and controlling the strategy
chosen. Measures should extend beyond price and be
aligned with the strategy