Read the summary and the most important questions on Supply Chain Management A Balanced Approach | 9781111532642 | Joel D. Wisner; G. Keong Leong; Keah Choon Tan

• 1 Supply

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• Definition Supply Chain Management:

  Coordinating/integrating a number of  goods- and services-related activities among supply chain participants to improve operating efficiencies, quality and customer service among the collaborating organization.

• What are the activities regarding Supply?

  - Supplier management
  - Strategic partnerships
  - Ethics & sustainability

• What can be done against the Bullwhip Effect?

  Collaborative planning, forecasting & replenishment activities.

• What is the core activity of purchasing & Supply Management?

  Managing supplier relation ships.
  - Structuring purchasing processes internally.
  - Structuring supplier relationships externally.

• Where is Purchasing/Supply Management aimed at?

  -Securing supply
  - Consistent quality
  - Cost reduction
  - Product innovation
  - Efficiency improvement

• What are the criteria regarding centralized or decentralized purchasing?

  - Commonality of purchasing requirements
  - Geographic supplier location
  - Flexibility supply market structure
  - Savings potential
  - Local customer demands (product mix)

• Definition profit leverage effect

  A decrease in purchasing expenditures directly increases profits before taxes.

• Definition Return on Assets Effect

  Financial ratio of a firm's net income in relation to its total assets.
  --> High ROA: management is capable of generating large profits with little investments.

• What are the levels of control for supplier relationships?

  0: Contract
  1: Competitive bidding
  2: Service level agreements + vendor rating
  3. Cost modeling
  4: Value chain analysis/management

• What are the steps for supplier evaluation & selection?

  1. Recognize need for supplier selection.
  2. Identify key purchasing requirements.
  3. Determine appropriate sourcing strategy.
  4. Identify potential supply sources.
  5. Limit suppliers in selection pool.
  6. Determine method of supplier evaluation.
  7. Select supplier & reach agreement