Supply Chian Management Flashcards
Resulting effects of a efficient supply chain management
Reduced costs
Increased quality
Supply chain management definition
Is the active streamlining of a business supply side activities to maximise customer value and gain a competitive advantage in the market place
Factors that effect the supply chain strategy
Compatibility
Manufacturing configuration
Coordination
Control
Difference between sourcing and global sourcing
Sourcing
- is the process of obtaining a supply of inputs for production
Global Sourcing
- is the process of materials management, inventory management and transportation between suppliers, manufacturers and customers
Types of sourcing and shoring
Outsourcing Insourcing Offshoring Restoring Near shoring
Out sourcing definition
An agreement where one company contracts its own activity to a different company
Insourcing definition
Using your own personal resources to accomplish a task
Offshoring
Offshoring is the relocation of a business practices in a different location, usually in another country
Reshoring definition
Is thee act of reintroducing domestic manufacturing to your country
Near shoring definition
Moving the business practices to a near by country
Differences between outsourcing and contract manufacturing
Outsourcing
- when a company externalises a function
Contract manufacturing
- entire manufacturing is moved. To another company
Why do firms globally outsource
Gain materials available in that country
Establish presence in foreign market
Replicate competitors actions
Types of global sourcing
Vertical intergration
-owns most of the supplier network
Industrial clusters
-when business locate together to make ease of business
Four phases of purchasing
Domestic purchasing only
Foreign buying based on need to
Foreign buying as part of procurement strategy
Integration of global procurement strategy
Procurement definition
Is the acquisition of the materials , supplies and services that a company or project requires in order to work successfully
Would be the plan of becoming cost efficient
