SCHM 2301 Chapter Notes - Chapter 10: Integrated Operations, Supplier Relationship Management, Insourcing
22 Mar 2016
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Document Summary
Supply management is the identification, acquisition, and management of inputs and supplier relationships that a firm needs to attain its strategic objectives. Aka purchasing and procurement (cid:1) (cid:1) (cid:1) Sourcing the identification, evaluation, and selection of suppliers. Supply management"s impact on firm and supply chain. Corporate purchases go beyond purchases of raw materials: a firm focuses on its core competencies while. The suppliers take on noncore business functions. The goals of effective supply management: ensure timely availability of resources, reduce total costs, enhance quality, access technology and innovation, foster sustainability. Ensuring that the right purchases are available at the right time to (cid:1) (cid:1) support new product launches, production and shipments. Early deliveries can also cause problems: increase inventory cost, waste resources, reduce flexibility for the buyer. Supply risk the probability of an unplanned event in acquisition, delivery and use that negatively affects a firm"s ability to serve its customers: risk increased by.
