Chapter 13.docx - CHAPTER 13 - visualizing and exerting...

CHAPTER 13
- visualizing and exerting control entire supply chain => companies can balance demand
for products and services with available supply
I. SUPPLY CHAIN :
- the connected chain of all business entities (internal and external) to the company
- perform or support the logistics function
1. Supply Chain Agility
- operational strategy – creating inventory velocity
- operational flexibility
 Agile Companies :
+ Synchronize activities by sharing supply-and-demand market information
+ Focus on activities that create direct customer benefits
+ Partner closely with suppliers and service providers to reduce customer wait times
for products
+ Reduce supply chain complexity through evaluation and reduction (or elimination)
of items customers aren’t buying
2. Outsourcing (Contract Logistics)
- a manufacturers or suppliers use of an independent third party
- manage an entire function of the logistics system
- Ex : transportation, warehousing, or order processing
3. Third-party logistics company (3PL)
- A firm provides functional logistics services to others
4. Reshoring
- deinstitutionalization of a business process from an outsource location/country to the
original location