B A 360 Chapter Notes - Chapter 11: Keiretsu, Supply Chain, Purchasing Manager
Document Summary
Supply chain management - coordination of all supply chain activities, starting with raw materials and ending with a satisfied customer. Includes suppliers, manufactures and/or service providers, and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer. Objective is to structure the supply chain to maximize its competitive advantage and benefits to the ultimate consumer. Make-or-buy decision - choosing products and services that can be advantageously obtained eternally as opposed to produced internally. Outsourcing - transfers some of what are traditional internal activities and resources of a firm to outside vendors. Vendor performing the outsourced service is an expert intuit particular speciality. Rather than looking for short-term attributes, a buyer is better off forming a long-term relationships with a few dedicated suppliers. Using few suppliers can create value by allowing suppliers to have economies of scale and a learning curve that yields both lower transaction costs and lower production costs.
