SCM 303 Lecture Notes - Lecture 25: Outsourcing, Campbell Soup Company, Revenue Sharing
Document Summary
If one firm is fast, efficient, and effective: Net result is no change: but if all sc partners are fast, efficient and effective: Supply chain coordination: coordination across multiple firms in the supply chain to reduce: Risk: much of this course has focused on internal practices of a firm or buyer-supplier practices. Bullwhip effect: demand fluctuations are amplified as they move upstream in the supply chain, ca(cid:373)p(cid:271)ell"s soup example. Cpfr: collaborative planning, forecasting, and replenishment. Once planning is set up, then restart at step 3. Vendor managed inventory: vmi: buyer allocates space for supplier inventory but supplier manages inventory in that space, often (but not always), supplier owns the inventory until buyer uses/sells it, advantages. Supplier has incentive to not stock out. Supplier has incentive to not over stock. Profits and risks are not evenly/equitably shared between firms. Fo(cid:272)us is (cid:449)hat"s (cid:271)est for (cid:373)y fir(cid:373: local optimization example.
