The basics of Supply Management

The basics of Supply Management - firms competitive...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Supply Management The basics of Supply Management The make vs buy decision Is activity of strategic importance – NO Does company have a specialised knowledge – NO Is company’s operations performance superior – NO Is significant operations performance involvement likely? NO EXLORE OUTSOURCING POSSIBILITY MAKE Reasons for making Core competencies Lower production cost Unsuitable suppliers Assure adequate supply Utilize surplus labor Obtain desired quantity Remove supplier collusion Unique item Protect proprietary design/ quality Increase/maintain company size BUY Free management time Lower acquisition cost Preserve supplier commitment Obtain technical/management skill Inadequate capacity Reduce inventory costs Flexibility/alternate supply source Inadequate own resource/skill Shifting role of purchasing: a) Passive – performance based on efficiency measures, supplier selection based on rice and availability b) Independent – is independent of
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: firms competitive advantage, performance based on cost reduction , coordination established between purchasing and technical disciplines c) Supportive- support companys competitive advantage, purchasing included in sales, supplies constantly monitored and analysed d) Integrative fully integrated in the firms competitive strategy, cross-functional training Supply chain management managing the flow of material and information between a string of operations that from the chains of a supply network Upstream flow customer requirements Downstream flow products services for the customer (delivery info, new products service) Benefits of looking at the who supply chain:-Puts the operation in to a competitive context-Helps to indentify key players-Shifts emphasis to the long term-Changes the nature of the supplier buyer relationship WHAT DO WE WANT/ WHAT CAN WE DO...
View Full Document

Ask a homework question - tutors are online