How can we explain how important supply chain management is in the business industry? Many business go through the process of supply chain such as Public v Private Primary, Secondary, Tertiary sectors, Financial, Retailing, Manufacturing, Wholesale trades, Construction, Mining Quarrying/Farming, Services and Transport. Our lives moves and grows through supply chain management its part of a system in receiving our products, everyday goods, Raw materials, Packaging materials, Semi - finished goods, Finished goods , Machines & spares, Services and Office Equipment. It can be defined as a process of arranging, preparing, applying and taking efficient control, by storing goods or services and taking information from the original point to the point of its development or consumption for the intention of conforming to customer’s orders and requirements. It involves coordination of all sectors involved in delivering the arrangement of inputs, outputs or outcomes that will meet a specification of customer or buyers requirement. Figure 1 TRADITIONAL SUPPLY CHAIN MODEL
Physical good flow information flow
In a way it’s like the circle of life, business life.
To go through the process of purchasing you must first characterize and define what is required and when it is wanted. Second identify the item, suppliers and evaluate. After that you negotiate the terms in which you want and negotiate the price or the order. The result is receiving the requirements, goods or services. The final stage is the payment procedure in which will either be in check or cash. “To acquire the right quality material, at the right quantity, from the right source, at the right price.” - Baily 2005 Our aim is to the theory or definition of purchasing which are six rights can impact on coca cola as the key official supplier to the 2012 Olympics. We’re going to cover each of the six rights which are: