Supply Chain Management

Origins of the Lean Manufacturing

Over the span of circa 40 years time, from the beginning of the 1950s to the end of the 1980s, Toyota led Japanese automotive industry created a unique production/manufacturing system, which brought the industry from the ruins of the 2nd World War to the biggest automobile exporter in the world.

What is supply chain management

What is supply chain management: basically this is a group of independent organizations connected together through the products and services that they separately and/or jointly add value on in order to deliver them to the end consumer. It is very much an extended concept of an organization that adds value to its products or services and delivers them to its customers.

Strategic Role of Purchasing

Purchasing function has a strategically indispensable role to play in supply chain management. It covers the sourcing end of supply chain management interfacing with the delivery end of the suppliers.

The classical definition of purchasing is: to obtain materials and/or services of the right quality in the right quantity from the right source, deliver them to the right place at the right price.

Supply Relationship Defined

Supply relationship can be defined as the cross organisational interaction and exchange between the participating members of the supply chain. This means that the relationship is between organisations not individual people within the same supply chain where the material flows defines the boundary. However for the inter-organisational interaction that falls outside of the main streams of the material flows, then it may not be called collaborative relationship or partnership relation, but may not be the supply relationship.

Supply relationship can be either on the upstream side with the suppliers or on the downstream side with the buyers. If the relationship is solely observed between one supply and one buyer, it is also called dyadic relationship.

This section considers what it is that is needed to successfully deliver customer satisfaction recognizing that many market places and customer groups have their own special challenges. This means again that there is no one solution to all of these and so more evaluation and managerial choice is necessary and this needs to be done regularly.

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