Supply Chain Management Flashcards
Operations management
The planning, directing and controlling of the transformation of ‘inputs’ to ‘outputs’ that meets the needs of our customers
Procurement
The sourcing and purchasing of goods for business use i.e. getting the right material from the right supplier at the right price and the right time
Purchasing
Refers only to the transaction part of procurement
Supply chain management
Concerned with the flow of goods through the organisation with the aim of achieving strong coordination and efficiency, which in turn makes the firm more competitive
Supply chain
Includes everything that comes into contact with a particular product
Single sourcing
Each product is purchased from 1 supplier which may be due to scarcity of supply or a mutually beneficial relationship
Multiple sourcing
The company has a number of suppliers, which reduces their power
Delegated sourcing
The task of sourcing is delegated to an external organisation
Parallel sourcing
The product may be sourced from separate supply systems e.g. local/online/overseas
Supply chain network
A co-ordinated network of vendors that supports a network of customers
Push based system
Producers form links between themselves to produce a product they believe customers will buy. The chain then pushes the product out into the market
Pull based systems
The market pulls the products into existence in response to demand signals. The demand network collaborates to produce product that the market demands
