GMS 401 Chapter Notes - Chapter 9: Vendor-Managed Inventory, Keiretsu, Vertical Integration
23 Mar 2017
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Important scm activities include determining: transportation vendors, credit and cash transfers, suppliers, distributors, accounts payable and receivable, warehouse and inventory, order fulfillment, sharing customer, forecasting, and production information, how supply-chain decisions affect strategy: Share market lowest cost (taco changing research; jointly. Bell) requirements and develop products demand to minimize (benetton) stock-outs (dell) Select primarily for criteria cost capacity, speed, and product development flexibility skills. Use modular characteristics average utilization capacity and flexible processes that lend processes themselves to mass customization: supply-chain risk, more reliance on supply chains mean more risk, fewer suppliers increase dependence between suppliers and customer. Supply-chain economics: make-or-buy decisions a choice between producing a component or service in-house or purchasing it from an outside source, outsourcing tra(cid:374)sferri(cid:374)g a fir(cid:373)"s a(cid:272)tivities that have traditio(cid:374)all(cid:455) (cid:271)e(cid:374) i(cid:374)ter(cid:374)al to e(cid:454)ter(cid:374)al suppliers. (specialization). Risky in industries with rapid tech changes: backwards integration moves towards supplier, forward integration moves towards the customer.
