Supply Chain Management Lecture One
Introduction Every organization must make a product or a service that someone values . In the global competition in today's customer demands on high quality , increased variety of products and services faster , has been caused increasing pressures on organizations. Today success of any organization is not only dependent on managing its relationships with its customers but also is dependent on considering suppliers group. 2 Prepared by … Dr. Magdy A. Khalaf
Introduction Most organizations function as part of larger supply chains . Supply chains integrating suppliers, manufacturers, distributors and retailers, such that products are produced and distributed at the right quantities , to the right location , at the right time , with the mutual goals of minimizing system wide costs and satisfying customer service requirements. 3 Prepared by … Dr. Magdy A. Khalaf
Supply Chain … 4 Suppliers Market intermediaries Company Competitors End users A group of inter-connected participating companies that add value to a stream of transformed inputs from their source of origin to the end products or services that are demanded by the designated end customers. Prepared by … Dr. Magdy A. Khalaf
Supply Chain ... A supply chain is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer. Linked through physical , information , and monetary flows 5 Prepared by … Dr. Magdy A. Khalaf
Sharing information from customers and suppliers. It is both directions. Supply chain ... Flows Information Flow Monetary Flow starting from the raw materials to the end product to the customer the funds flow from the consumers to the manufacturer, ... to supplier. Physical Flow 6 Prepared by … Dr. Magdy A. Khalaf
Transactional Supplier Relationship 7 … adversarial relationships … each party (supplier / customer) try to get much benefit Suppliers are not friends … no long term commitment to a supplier … encourages them to stay competitive … allow having better supplier Short term contracts and competitive tendering … supplier with reduced price is preferred … intend to reduce piece cost yearly Cost is everything Basic Assumptions Prepared by … Dr. Magdy A. Khalaf
Transactional Supplier Relationship 8 Benefits • Efficient … maintains competition between suppliers • Flexible … add extra suppliers or turn -off some suppliers according to demand changes • Technology … take the advantage of innovations of any supplier Prepared by … Dr. Magdy A. Khalaf
Transactional Supplier Relationship 9 Criticism 1. Costs may not be reduced: •
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- Spring '19
- Magdy Khalaf
- Supply Chain Management, Dr. Magdy A. Khalaf