Thanks for making me think through this in more

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Thanks for making me think through this in more detail than I normally do. Bill Thread: 24 Supply Chain Post: 24 Supply Chain Author: Posted Date: December 7, 2015 10:42 AM Status: Published Sue Smithee
2/21/2016 Collection – MBA675­T303 Operations & Logistics in the (... ; 19/30 24. What is meant by the term:the supply chain?How does this impact a firm’soperationsstrategy? How can a proper supply chain aid a firm in gaining a competitiveadvantage? Simply stated, the supply chain is the flow of goods from source to consumer. Therole of the firm in the supply chain is to effectively coordinate the movement ofgoods from raw material to finished products in the most cost and time efficient waypossible.“Customers are demanding products consistently delivered faster, exactlyon time, and with no damage” (Mentzer, et al., 2001, p. 2). As markets mature,supply chain management is more than competitive advantage, but a marketrequirement.Crude oil sourced from Canada, for example follows a Supply Chain through pipelinesor via railway south into the United States. Once in the US, the oil goes to refineries,where it is processed into gasoline, oil and other petroleum products. Some of thosepetroleum products are sent to other factories, where they are consumed as rawmaterials for beauty products, plastics or hundreds of other items. The refinedgasoline and the other products then are transported via truck or rail to retaillocations where they are consumed by the public.Some companies base their business model on removing parts of the supply chain sothat goods are sold at wholesale prices. Others concern their operations with agrowing trend toward sustainability, taking steps to ensure that raw materials aresourced with fair trade practices, and that transportation and other logistics aremanaged in a way to conserve resources. Creating less waste with supply chain istheoretically more cost efficient.Supply chains can encompass more than just raw materials, but also information,services, and financing as these factors move from source to customer. Some of theimportant factors of supply chains, according to Mentzer et al. are integratedbehaviors, long term relationships, and cooperation – including mutual sharing orrisks, rewards, and information.Walmart and Proctor and Gamble use an integrated approach to monitor supplychain (Wailgum, 2008). As razors are purchased from Walmart, scan data istransmitted back to Proctor and Gamble, automatically alerting them that moresupplies are needed. This allows P&G to sell razors at a lower price to Walmart,because they save overhead on not having to retain inventory in razors. This is anexample of an integrated effort with cooperation between the two companies and amutual benefit.The supply chain impacts firm operations by impacting the finances needed totransport items, and the coordination and communication between one firm andanother. It also impacts timing and volume of production, and virtually every other

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