ENG ELC 220 Lecture Notes - Lecture 29: Offshoring, Purchase Order, Supplier Relationship Management
23 Oct 2020
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10. 1 supply managements impact on firm and supply chain performance. Supply management (according to the institute for supply management ism)= the identification, acquisition, positioning, and management of resources and capabilities that a firm needs to attain its strategic objectives. It is important to select and work with the right partners, because purchases account for a large percentage of the firms cost. Sourcing= the process used to acquire goods and services from suppliers, it is an important part of supply management. Supply chain risk= the probability of an unplanned event in acquisition and delivery. Sources of supply chain risk are often upstream in the supply chain, beyond a firms first tier supplier. Supply chain risk management (scrm) identifies, assess, and reduce exposure and speed recovery if a disruption occurs. Supply chain resilience= the capability to resist and recover from supply chain disruptions. The total cost of using a product can be much greater than its purchase price.
