COMMERCE 2OC3 Chapter Notes - Chapter 11: Bullwhip, Deckers Outdoor Corporation, Vendor-Managed Inventory
Document Summary
Increasingly organizations costs are determined by purchasing; relationships with suppliers are increasingly integrated and long term. Joint efforts that improve innovation, speed design, and reduce costs are common. Scm involves determining: transportation vendors, credit and cash transfers, suppliers, distributors, accounts payable, warehousing and inventory, order fulfillment, sharing customer, forecasting, and production info. Objective is to build a chain of suppliers that focuses on maximizing value to the ultimate customer. Effective supply chain management makes suppliers partner in the firms strategy to satify an ever changing marketplace. Activities of scm cut across accounting, finance, marketing and operations disciplines. Firms must achieve integration of strategy up and down the supply chain, and must expect that strategy to be different for different products and to change as products move through their life cycles. Having fewer suppliers makes the supplier and customer more dependant on each other, increasing risk for both which is compounded by globalization and logistical complexity.