pply chain strategy is successful.• Competency 2: Improve efficiency in the supply chain. o Describe the main challenges facing a company.• Competency 3: Manage a supply chain in order to satisfy customers. o Describe how a company has changed its supply chain to satisfy its customers.• Competency 4: Communicate in a professional manner that is consistent with expectations for supply chain managers and participants. o Exhibit proficiency in writing, critical thinking, and academic integrity by appropriately attributing sources• Supply Chain Basic Functions
The functions basic to all supply chains are:
• Planning.• Sourcing.• Making.• Delivering.
Fundamental decisions are required from supply chain managers to define strategy in developing a supply chain that will effectively meet these four requirements.
Supply Chain Planning
Planning or forecasting includes decisions needed to define operations of the other four supply chain functions. Three approaches to supply chain planning are:
• Demand forecasting.• Product pricing.• Inventory management.
Sourcing or procurement involves decisions that determine the source of the resources that a firm requires for operations. This function traditionally included activities such as purchasing, consumption management, vendor selection, contract negotiation, and contract management. Recent global developments and trends in outsourcing have made this a dynamic changing role for supply chain managers.
Making or producing is the economic process of converting resources into goods and services. Typical activities in this function include product development and design, operations facility management, and production scheduling.
Distribution or delivering can include order management, delivery scheduling, and order processing. Inventory placement and delivery centers are of prime importance in supply management as the cost effectiveness of the entire system can rely upon the efficient delivery function
• Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
• Why is it important to consider uncertainty when evaluating supply chain design decisions?• What are the major sources