Exam Paper for Distribution Managment
Patricia Mae D. Perez
Distribution Management
5. Major concepts related with supply chain
A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the difficulty of the chain may vary greatly from industry to industry and firm to firm.
It is a dynamic system that evolves over time. Indeed, not only do customer demand and supplier capabilities change over time, but supply chain relationships also evolve overtime. For example, as the customer’s power increases, there is increased pressure placed on manufacturers and suppliers to produce an enormous variety of high- quality products and to produced customized products.
Characteristic of supply chain management
There are numbers of characteristics of supply chain. The most important is that the firms understand that their future depends to al arge level on the success of channel and they involved themselves as part of the channel. Relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. There is joint planning of products, locations, and quantities of inventory to be kept in the system. Great deal information sharing between firms in order to coordinate the efficient flow of goods. The modern computing and communication technology, such as electronic data interchange, is used to rapidly provide information within the channel as needed. Cost advantages are exploited wherever possible.
Other characteristics are:
Competing goals and objectives
Cost reduction and on time delivery of goods
Dynamic operating conditions
Emphasis on responsiveness to design changes
Process of supply chain management
The planning
Distribution Management
5. Major concepts related with supply chain
A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the difficulty of the chain may vary greatly from industry to industry and firm to firm.
It is a dynamic system that evolves over time. Indeed, not only do customer demand and supplier capabilities change over time, but supply chain relationships also evolve overtime. For example, as the customer’s power increases, there is increased pressure placed on manufacturers and suppliers to produce an enormous variety of high- quality products and to produced customized products.
Characteristic of supply chain management
There are numbers of characteristics of supply chain. The most important is that the firms understand that their future depends to al arge level on the success of channel and they involved themselves as part of the channel. Relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. There is joint planning of products, locations, and quantities of inventory to be kept in the system. Great deal information sharing between firms in order to coordinate the efficient flow of goods. The modern computing and communication technology, such as electronic data interchange, is used to rapidly provide information within the channel as needed. Cost advantages are exploited wherever possible.
Other characteristics are:
Competing goals and objectives
Cost reduction and on time delivery of goods
Dynamic operating conditions
Emphasis on responsiveness to design changes
Process of supply chain management
The planning