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Learning Objectives
You should be able to:
Discuss the current state & future challenges of SCM. Explain why Supply Chains are becoming more global. Describe how firms are expanding their SCM efforts to second& third-tier members of their supply chains. Discuss why & how supply chains are making greater efforts to become more environmental responsible. Explain how supply chains are becoming faster. Explain why firms are outsourcing some or all SCM processes. Describe some of the ways supply chains are reducing total costs.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Learning Objectives
You should be able to:
Explain the importance of supplier partnerships and strategic alliances Understand factors for developing successful partnerships Develop a supplier evaluation & certification program Explain the importance of a supplier awards program Understand the capabilities of supplier relationship management technology Explain the benefits of using SRM software to manage suppliers
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Introduction
Supply, sourcing, and purchasing professionals in companies nationwide believe strongly that more and stronger supplier partnerships are critical to achieving competitive corporate performance Purchasing Magazine
Supplier partnerships involve a mutual commitment over an extended time to work together to the mutual benefit of both parties, sharing relevant information and the risks and rewards of the relationship Institute for Supply Management
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Change Management
Companies must be prepared to manage change that comes with the formation of new partnerships.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
Capabilities
Key suppliers must have the right technology and capabilities to meet cost, quality, and delivery requirements. In addition, suppliers must respond quickly to changing customer requirements.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Cost/Price- Competitive price & availability of cost breakdowns Quality- Zero defects, Fit for use, ISO 9000 Delivery- Fast, Reliable/on time Responsiveness & Flexibility- Responsiveness to customers & to changing situations Environment- Environmentally responsible, ISO 14000 Technology- Superior product/service design Business Metrics- Reputation, information sharing Total Cost of Ownership
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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ISO 14000
A family of standards for environmental management. The benefits include reduced energy consumption, environmental liability, waste and pollution, and improved community goodwill.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Supplier Development
Supplier development refers to buyers activities undertakes to improve a suppliers performance and/or capabilities based on the following approach:
1. 2. 3. 4. 5. 6. 7. Identify critical products and services Identify critical suppliers Form a cross-functional team Meet with top management of supplier Identify key projects Define details of Agreement Monitor status and modify strategies
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Supplier Awards
Companies should recognize and celebrate the achievements of their best suppliers.
Award winners exemplify true partnerships continuous improvement, organizational commitment, and excellence. Award-winning suppliers serve as role models for other suppliers.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan. 2005 Thomson Business and Professional Publishing
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