Page 331 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes  The supply chain is basically a customer focused, value maximizing function of an
organization.

 Relationship management focuses on improving operations and supply chain performance
by eliciting the cooperation of other firms.
 In order to create an efficient and successful supply chain, organizations have to manage
the relationships on all fronts - with their upstream suppliers, their internal suppliers, as
well as their downstream customers.
 CRM is a strategy used to learn more about customers’ needs and behaviours in order to
develop stronger relationships with them.
 Functional groups (engineering/R&D, manufacturing, and sales/marketing) are all
instrumental in designing, building, and selling products most efficiently for the supply
chain.

 The SRM macro process aims to arrange for and manage supply sources for various goods
and services.
 SRM reflects the need to integrate the entire supply chain – and to do so in a way that
preserves flexibility, opens its enterprise infrastructure to the inventions, expertise and
networks of others, and lets them shed the bits of the supply chain that can be better run by
partners.
 Supply chain management views the operative dimensions such as purchasing/supply
organization as the integrating mechanism in the internal and external exchanges of the
firm.
 A comprehensive supply chain design methodology needs the appropriate scope and
detail to be meaningful for implementation across the supply chain as well as evaluation
to assess the performance of the design.
 Supply chain security refers to efforts to enhance the security of the supply chain, the
transport and logistics system for the world’s cargo.

14.6 Keywords

Asset: A resource with economic value that an individual, corporation or country owns or
controls with the expectation that it will provide future benefit.
Customer Relationship Management: CRM is a strategy used to learn more about customers’
needs and behaviours in order to develop stronger relationships with them.
Financial evaluation: Financial evaluation mainly focuses into – Money aspects of the project,
and – Rewards and financial profitability to the investors.

Intellectual Market-Based Assets: Intellectual market-based assets are the types of knowledge a
firm possesses about the environment.
Internal Supply Chain Management (ISCM): All processes that is internal to the firm.

Organisation: A social unit of people that is structured and managed to meet a need or to pursue
collective goals.
Relational Market-Based Assets: Relational market-based assets are outcomes of the relationship
between a firm and key external stakeholders.
Relationship Management: A strategy employed by an organization in which a continuous
level of engagement is maintained between the organization and its audience.

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