week 4 Flashcards
Define a supply chain
- The process from raw materials to the consumption of the finished product linking across supplier and user companies.
- Functions within and outside a company that enable the value chain to make products and provide services to the customer.
Define Supply chain management
What are the two form of supply chains
- Vertical – all or almost all features of the supply chain are owned or controlled by one organisation. eg raw materials, component manufacture, main product, distribution, logistics, Marks & Spencers, Shell, BP
- Horizontal – many suppliers which can provide solutions which can integrate using standard interfaces. eg computer components, car components, batteries, power supplies
List the functions that manage the supply chain
- Purchasing and supply management
- Physical distribution management
- Logistics
- Material management
- Supply chain management
Discuss the make vs buy issue within supply chains
•Current trend favours outsourcing all activities that do not directly represent or support core competencies. This has occurred in both service and manufacturing industries
What are the advantages of having few suppliers
–Understand the needs of the organisation and its customers in all aspects of the product-service mix
–Economies of scale
–Investment in innovation
–Transaction costs reduced
–Partners develop multiple communication links with a shared approach to problem-solving
What features must a continuing partnership relationship have
–a commitment over an extended time period,
–an exchange of information, and
–an acknowledgement of the risks & rewards of the relationship.
Define a vendor and supplier
•Vendor
–Provider of goods or services who has not yet supplier to your company, potential supplier
–Difficult to obtain data to make an assessment
•Supplier
–Organisation which has supplied goods or services to your company
–Have a performance track record
