Scm in Mc Donald's
OPERATION MANAGEMENT
TERM PAPER on
SUPPLY CHAIN MANAGEMENT
AND OUTSOUTRCING OF
MC DONALDS
What is supply chain management?
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer
Main characteristics of supply chain management? * Many Suppliers -the supplier respond to the demands & specifications of a “request for quotation” with the other usually going to the low bidder. This approach holds the supplier responsible for maintaining the necessary technology, expertise, & forecasting abilities, as well as cost, quality &delivery competencies. * Few Suppliers- implies that rather than looking for short-term attributes, such as low cost, a buyer is better off forming a long-term relationships with a few dedicated suppliers. * Vertical Integration- developing the ability to produce goods or services previously purchased or actually buying a supplier or distributor
2 types of Vertical Integration- 1. Backward integration-suggest firms to purchase its suppliers. 2. Forward integration-suggests that manufacturer of components make the finished product.
VI can yield: cost reduction, quality adherence, timely delivery. * Keirestu networks- a Japanese term to describe suppliers who become part of a company coalition * Virtual companies- companies that rely on a variety of supplier relationships to provide services on demand. Also known as hollow corporations or network companies.
Advantage of Virtual Companies * Include specializes management expertise * Low capital investment * Flexibility &speed w/c results to efficiency.
Traditional example of VO: apparel business
TERM PAPER on
SUPPLY CHAIN MANAGEMENT
AND OUTSOUTRCING OF
MC DONALDS
What is supply chain management?
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer
Main characteristics of supply chain management? * Many Suppliers -the supplier respond to the demands & specifications of a “request for quotation” with the other usually going to the low bidder. This approach holds the supplier responsible for maintaining the necessary technology, expertise, & forecasting abilities, as well as cost, quality &delivery competencies. * Few Suppliers- implies that rather than looking for short-term attributes, such as low cost, a buyer is better off forming a long-term relationships with a few dedicated suppliers. * Vertical Integration- developing the ability to produce goods or services previously purchased or actually buying a supplier or distributor
2 types of Vertical Integration- 1. Backward integration-suggest firms to purchase its suppliers. 2. Forward integration-suggests that manufacturer of components make the finished product.
VI can yield: cost reduction, quality adherence, timely delivery. * Keirestu networks- a Japanese term to describe suppliers who become part of a company coalition * Virtual companies- companies that rely on a variety of supplier relationships to provide services on demand. Also known as hollow corporations or network companies.
Advantage of Virtual Companies * Include specializes management expertise * Low capital investment * Flexibility &speed w/c results to efficiency.
Traditional example of VO: apparel business