Chapter 10: Extending the Organization- Supply Chain Management

Basics of Supply Chain:

1. Plan- A company must have a plan for managing all the resources that go towards meeting customer demand for products or services.
2. Source- Companies must carefully choose reliable suppliers that will deliver goods and services required for making products.
3. Make- This is the step where companies manufacture their products or services.
4. Deliver- Companies must be able to receive orders from customers, fulfill the orders via a network of warehouses, pick transportation companies to deliver the products, and implement a billing and invoicing system to facilitate payments.
5. Return- This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products.

Factors Driving SCM:

• Visibility- more visible models of different ways to do things in the supply chain have emerged.
•  Consumer behavior
• Competition
• Speed