Page 201 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management Neha Tikoo, Lovely Professional University

Notes Unit 10: Building of a Supply Chain

CONTENTS
Objectives
Introduction

10.1 Orientation of Supply Chain Function within an Organization
10.1.1 Supply Chain Design
10.1.2 Supply Chain Planning

10.1.3 Supply Chain Operation
10.2 Implementation of Supply Chain Function within an Organization
10.2.1 Internal Supply Chains
10.2.2 External Supply Chains
10.3 Supply Chain Processes in an Organization

10.4 Sourcing Strategy
10.4.1 Multi-sourcing Strategy
10.4.2 Network Sourcing Strategy

10.4.3 Single Sourcing Strategy
10.5 Summary
10.6 Keywords
10.7 Review Questions
10.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the orientation and implementation of supply chain function;

 Describe the supply chain processes in an organization;
 Differentiate the single sourcing and multiple sourcing strategy.
Introduction

The business change was driven by a number of macro level forces: an empowered consumer;
a shift in economic power toward the end of the supply chain; deregulation of key industries;
globalization; and technology, especially the phenomenal developments in data processing and
communication technologies. These forces elevated the importance of supply chain management
as a strategic weapon for competitive advantage.
The supply chain not only includes the manufacturer and suppliers, but also transporters,
warehouses, retailers, and customers themselves. Focusing on the management of these factors
was critical. The key factors that allowed organizations to compete successfully, was to find
solutions in all these areas.

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