Supply-Chain Management Essay

5449 Words22 Pages
Chapter 11 Supply-Chain Management Background Supply-chain management remains one of the hottest topics in business today, as companies continue to search for effective ways to drive costs out of the supply chain. Many schools offer one or more courses or even full programs devoted to the topic. Chapter 11 provides a good overview of some of the major supply-chain management issues. Slides 11-41 through 11-44 identify important opportunities for managing supply chains. The main theme that instructors should emphasize is that effective supply-chain management is all about cooperation among members of the chain through close partnerships with suppliers, sharing information throughout the supply chain, etc. Optimizing decisions for the whole supply chain instead of for each firm individually creates value, and the extra value creates a win-win situation as long as the benefits are shared among the supply chain members. Class Discussion Ideas 1. The world’s largest retailer, Wal-Mart, owns and manages its own fleet of trucks. The company has often received praise for its distribution capabilities. The practice, however, seems to represent a stark contrast to the practice of outsourcing not only shipping, but other logistics operations to third-party logistics providers. Discussion could address the advantages and disadvantages of these different policies. Under what conditions would it make sense for a firm to own and manage its own trucking operation? 2. Multi-facility companies must decide whether to purchase goods centrally or let each site purchase on its own. Instructors could have the students try to identify the advantages and disadvantages of centralized purchasing. Some advantages include: (1) more ability to obtain quantity discounts, (2) reduced duplication of effort, (3) economies of scale in purchasing activities, and (4) potential risk

More about Supply-Chain Management Essay

Open Document