GMS 401 Chapter Notes - Chapter 9: Mass Customization, Fax, Online Auction
24 Dec 2017
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Document Summary
Most firms spend a huge portion of their sales dollars on purchases. Because an increasing percentage of an organization"s 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. Such efforts, when part of a corporate-wide strategy, can dramatically improve both partners" competitiveness. This integrated focus places added emphasis on managing supplier relationships. Supply-chain management is the integration of activities that procure materials and services, transform them into an intermediate goods and final products, and deliver them to customers. These activities include purchasing and outsourcing activities, plus many other functions that are important to the relationship with suppliers and distributors. Supply-chain management includes determining: transportation vendors, credit and cash transfers, suppliers, distributors, accounts payable and receivable, warehousing and inventory, order fulfillment, and, sharing customer, forecasting, and production information.
