BU385 Chapter 11: Chapter 11 Textbook Summary
Document Summary
Supply chain a sequence of organizations that are involved in producing and delivering a product. How suppliers, manufacturers, distributors and customers are linked together. Supply chain management collaboration and coordination of all components of the supply chain so that market demand is met as efficiently (reduce costs) and effectively (timeliness and quality) as possible. The need for supply chain management: the need to improve operations. Tqm and jit and other cost saving practices have already reduced costs in most organizations. There are still many cost savings to be realized in procurement, distribution, and logistics; the supply chain. Reducing costs and increasing quality by focusing on core activities and subcontracting others. Outsourcing buying goods or services instead of producing them in-house. Suppliers may have lower cost, more expertise. Risk in reduction in control and expertise. Some companies produce in-house and outsource as a hedge or because they lack capacity.
