COMMERCE 2OC3 Chapter Notes - Chapter 11: Drop Shipping, E-Procurement, Inventory Turnover
25 Apr 2017
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Document Summary
The supply chain"s strategic importance: object is to build a chain of suppliers that focus on maximizing value to the ultimate customer. Importance: supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system. Competition is no longer between companies, it is between supply chains. Commonly used for commodity products, purchasing is based on price, suppliers compete with one another. Supplier is responsible for technology, expertise, forecasting, cost, quality, and delivery. Buyer forms longer term relationships with fewer suppliers. Create value through economies of scale and learning curve improvements. Suppliers are more willing to participate in jit programs and contribute design and technological expertise. Developing the ability to produce goods or service previously purchased. Can improve cost, quality, and inventory but requires capital, managerial skills, and demand. Formal collaboration: enhance skills, secure supply, reduce costs.
