MGM102H5 Chapter Notes - Chapter 6: Contribution Margin, Lead Time, Strategic Sourcing
Document Summary
Optimizing the entire supply chain operations for the product: systems approach to managing the flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end customer. Supply chain includes: suppliers, transformation process, distributors, customers. Issues to (cid:271)e addressed i(cid:374) (cid:272)o(cid:373)pa(cid:374)y"s supply (cid:272)hai(cid:374): product design to facilitate supply chain management, strategic sourcing, logistics and inventory management, vertical integration and outsourcing, measuring supply chain performance. Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in optimizing the supply chain needs of the firm. In the past, sourcing = purchasing: sourcing was important but not strategically the centre of attention. Today, globalization and inexpensive communications technology has made strategic sourcing very important. Specificity how common the item is and how many substitutes might be available: eg. blank dvd disks are commonly available from many different vendors, has low specificity, eg.
