1. Define supply chain management. Explain how you would communicate the ideas expressed in your definition in a way that could be operationalized.
According to the text, “supply chain management is the theory of comparative advantage applied at the company level. It is the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.” I would communicate the ideas expressed in the above definition by following the internal value chain in such a way the author describes in the text:
• Executive management- “defines company strategy and allocated resources to achieve it.”
• R&D- “responsible for new product design.”
• Supply management- Coordinates the upstream supply base, finding the right suppliers and building the right relationships with them.”
• Operations- “transforms the inputs acquired from suppliers into more highly valued products.”
• Logistics- “moves and stores materials so they are available when and where they are needed.”
• Marketing- “manages the downstream relationships with customers, identifying their needs and communicating to them how the company can meet those needs.”
• Human resources- “designs the systems used to hire, train, and develop the company’s employees.”
• Accounting- “maintains business records that provide information needed to control operations.”
• Finance- “acquires and controls the capital required to operate the business.”
• Information technology- “builds and maintains the system needed to capture and communicate information among decision makers.”
3. Draw the supply chain for an apparel manufacturer selling cotton slacks.
It starts with the supplier’s supplier, then the supplier, the focal firm (manufacturer), then to the customer, then to the customer’s customer. The upstream suppliers would be Accounting, Finance, Information