chapter 17

4 Pages
Unlock Document

University of Toronto Scarborough
Management (MGM)
Ingrid L.Stefanovic

INTRODUCTION Products that are moving quickly can be replenished at the retail level before current supplies run out, so sales are not missed Supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers Seven key elements involved in a supply chain o Supply o Production o Inventory o Location o Transportation o Information o Customer needs Supply chain management is the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purposes of improving the long term performance of the individual companies and the supply chain as a whole Key success to supply chain is the speed that the activities can be accomplished Characteristics of effective supply chain management o Reduced inventories o Lower operating costs o Product availability o Customer satisfaction Since supply chain managements goal is to build flexible and efficient chains, manufacturers need to forge close, long term ties with their suppliers Most effective alliances with external suppliers o Power balancing Purchasing managers balance their contracts so that neither manufacturer nor supplier is highly dependent on each other o Co-Specialization Purchasing managers try to achieve a degree of mutual dependence in their alliances o Target Costing Purchasing manager set target costs based on the manufacturers goal for the final selling price Cooperative approach to pricing o Personal ties Personal ties among managers are often what keep alliances productive Logistics: The Critical Element in Supply Chain Management
More Less

Related notes for MGMA01H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.