Supply Chain Strategy
Supply-Chain Management
Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.
1 Supply Chain Strategy Across the Organization
Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential for service as well as manufacturing firms.
2 Supply Chain for Services and Manufacturing
Every firm or organization is a member of some supply chain.
1 Services
Supply chain design for a service provider is driven by the need to provide support for the essential elements of the various service packages it delivers. Elements of its service package include:
➢ Supporting facilities
➢ Facilitating goods
➢ Explicit services
➢ Implicit services
2 Manufacturing
A fundamental purpose of supply chain design for manufacturers is to control inventory by managing the flow of materials. Inventory is a stock of materials used to satisfy customer demand or to support the production of services or goods.
Inventory exists in three aggregate categories, which are useful for accounting purposes. Raw Materials (RM) are inventories needed for the production of services or goods. They are considered to be inputs to the transformation processes of the firm. Work-in-process (WIP) consists of items such as components or assemblies, needed to produce a final product in manufacturing. WIP is also present in some service operations, such as repair shops, restaurants, check-processing centers,
Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.
1 Supply Chain Strategy Across the Organization
Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential for service as well as manufacturing firms.
2 Supply Chain for Services and Manufacturing
Every firm or organization is a member of some supply chain.
1 Services
Supply chain design for a service provider is driven by the need to provide support for the essential elements of the various service packages it delivers. Elements of its service package include:
➢ Supporting facilities
➢ Facilitating goods
➢ Explicit services
➢ Implicit services
2 Manufacturing
A fundamental purpose of supply chain design for manufacturers is to control inventory by managing the flow of materials. Inventory is a stock of materials used to satisfy customer demand or to support the production of services or goods.
Inventory exists in three aggregate categories, which are useful for accounting purposes. Raw Materials (RM) are inventories needed for the production of services or goods. They are considered to be inputs to the transformation processes of the firm. Work-in-process (WIP) consists of items such as components or assemblies, needed to produce a final product in manufacturing. WIP is also present in some service operations, such as repair shops, restaurants, check-processing centers,