Chapter 8:
Improving Supply chains &
Strengthening customer RElationships
IN CHAPTER QUESTIONS:
1. How can organizations better manage their global supply chain?
There has been a shift towards "just-in-time" inventory delivery systems. These type of inventory management systems can be very effective and cost beneficial to companies, but they require an effective supply chain management system to back them up. To achieve this, a company must ensure they have open and clear communication channels. They should also develop back-up plans and have supplementary agreements with suppliers outside of their usual supplier to secure a life-line for emergency situations.
2. What are the trade-offs when developing a supply chain strategy?
As there is with most decisions, there is a cost-benefit trade-off. Managing a supply chain well requires advanced technology, which can be expensive. An organization must decide what value to place on their supply chain. At some point, the organization must be willing to take a risk on the failure or success of their supply chain. The amount of risk they are willing to take and the cost they are willing to take on are directly effected.
3. How are emerging technologies such as radio frequency identification improving the way in which organizations manage their supply chains?
Companies are using advanced technologies to better manage where their inventory is, and where it is going. With this technology, an organization can determine exactly where each piece of inventory is, how long it has been there, and where it is going when sold. Collection of this data is allowing companies to better determine when they need to order supplies and how much they need to order at a time.
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