chp 11 & 12 - what is supply chain 3 or more organization...

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what is supply chain? 3 or more organization linked directly by one or more upstream and downstream flows of products, services, finances, and information from finances and information from a source to a customer (and back as needed) -sometimes called "demand stream" supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. includes coordination and collaboration with channel partners which can be suppliers, intermediaries, third party service providers and customers. It integrates supply and demand chain management within and across companies. supply chain management is the integration of key business processes from end user through original suppliers, that provide products, services, and information that add value for customers and other stakeholders. Logistic Management that part of the supply chain management that plans, implements and controls the efficient, effective flow and storage of goods and services and related information between the point of origin and point of consumption in order to meet customer requirements. Logistics? place utility (where) time utility (when) also referred to as seven R's--Right product, Right quantity, Right condition, Right place, Right time, Right customer and Right time. Logistics Interfaces with Marketing price, product, promotion, Place career Pricing since the larger the shipment the cheaper the transportation rate, shipment prizes should be tailored to the carrier's vehicle capacity where possible. volume relationship volumes sold will effect inventory requirements strategic sourcing>economies of scale>unit price discounts product: customer packaging generally since the size, shape, weight and other physical characteristics of the product impact on its storage, transportation and handling the logistics management shall be included in any decision regarding these products traits. need to be considered in the decision making process. promotion push vs pull most important factor is that the logistics division is aware of any changes in demands patterns so that it can plan for any consequences. promotion strategies pull strategies-mfr use advertising to stimulate demand from consumers (more erratic...harder to forecast) push strategies-work with distributor or retailer to stimulate demand (provide floor displays, pay part of local) SCM goals reduce total supply chain cost, cost control is usually good but not at SC partner's expense just passes costs to supplier supplier raises costs or eats profits relationship suffers better: eliminates cost across supply chain challenge: cutting costs in one function can increase costs in others targets: transportation, facilities, inventory, info systems.

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