Effective supply chain management/Outsourcing

Question 1

what involves supply chain management decisions

Answer 1

• What to produce yourself and what to buy from others
• Which other businesses to work with
• Terms and conditions of the relationships with your suppliers

Question 2

Benefits of effective supply chain management

Answer 2

• Customers receive greater satisfaction
• Flexibility
• Lower Costs
• Environmental objectives
• Dependability
• Added value

Question 3

What are examples of environmental objectives in supply chain management

Answer 3

• Using sustainable resources
• Minimizing waste of resources
• Reduce carbon footprint

Question 4

What is added value

Answer 4

The difference in monetary values from raw materials to the standard of goods being sold to custoemrs

Question 5

What does the supply chain management affect in the business

Answer 5

• The extent to which supplies meet requirements of the business reliability
• The costs of the business
• The ability to be flexible to customer requirements

Question 6

Methods of effective supply chain management (TRADITIONAL & MODERN approach)

Answer 6

Traditional approach
- Buying huge quantities to obtain the lowest price possible

• Some concern given to quality
• Little involvement with managers of other business in the supply chain

Modern approach
- Buying smaller quantities from a number of different suppliers

• Flexibility and competition between suppliers may lead to better quality
• Attention given to ethical and environmental consideration

Question 7

What is outsourcing

Answer 7

The transfer of activities which were previously conducted in-house to a third party, outside the business