SCM 2220 Lecture Notes - Lecture 4: Supply Chain Optimization, Value Chain, Market (Place)

• School: University of Manitoba
• Department: Supply Chain Management
• Course: SCM 2220
• Professor: Changmin Jiang

Document Summary

Answer: supply chain rationalization is the process of systematically evaluating the network operations, customers, suppliers, and product offerings to find and eliminate the redundancies and inefficiencies. It increases supply chain visibility, helping the managers to understand the consequences of changing the supply chain structure. Such changes may involve the location of facilities, transportation, inventory control and management, and product mix. It helps in mapping the process, identifying the customers" needs, identifying core competencies, and costing systems in place. This helps in understanding the redundancies and strategies and the trade-offs in configurations. Answer: supply base optimization is a part of overall sourcing strategy where the number of suppliers to be included in the supply chain is decided, identification of right suppliers, and building the right relationships with them. However, on the other hand, supply chain reduction is a process of removing complexities from the supply base complexity in order to reduce the redundancies and inefficiencies from the overall process.