Elements Of Supply Chain Management

441 Words2 Pages
ELEMENTS OF SUPPLY CHAIN MANAGEMENT This essay discusses the four elements of supply chain management by first providing a short description of each of the four elements. It then discusses the types of failures each of those elements create within the supply chain. It also looks at why those results are linked to errors in a particular element. Note: While the descriptions of each of the four elements are relatively general and accurate, the types of failures each of the elements may be responsible for, are rather long lists. Therefore, in many cases it is important for the student to explain why one element may ultimately be responsible for a certain problem with a list. Purchasing Elements: The purchasing elements of the supply chain take into account the filling of requisitions through a process of finding suppliers, developing supplier alliances, managing suppliers, strategic sourcing, supplier certification, and purchasing the correct amounts of product with the proper balance of quality, speed, and flexibility at a price that will still provide acceptable return. Some of the mistakes in purchasing can cause low-quality end-items, high inventories, stockouts, excessive cost of goods sold, interruptions in production, or excessive operational costs. Operations Elements: The operations elements of the supply chain take into account the assembly or processing of materials and components into finished products or services. Operations is also responsible for creating the right amount of product within an appropriate period of time that will meet the demand needs of the customer while still satisfying their specific needs in terms of quality, cost, customization, and timely delivery. Mistakes in operations can cause shortages, stockouts, high inventories, low inventories, excessive operational costs, late deliveries, low-quality end-items, defects, or

More about Elements Of Supply Chain Management

Open Document