Consider the supply for breakfast cereal. There are farmers, who grow and make the raw materials. There is a manufacture that has an operations division for manufacturing the cereal, a marketing division and a logistics division. there is a distribution arm of the grocery chain that works with the distribution from a DC. There is an individual grocery store tht sells the cereal.
Discuss the competing and conflicting objectives of these parties.
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First, the farmer wants to get the maximum price for what he grows and processes. The manufacturer wants to pay her the lowest possible price. Second, the farmer wants to supply the raw materials of a mediocre quality, whereas the manufacturers always want the best quality raw material from the farmer. Third, the farmer wants to supply the raw material when he grows it, but the manufacturer wants raw material according to his production plan (2). The farmer has the goal of maximizing his revenues. The manufacturer has the objective of minimizing her costs.
The operations division wants a fixed production plan but the ...
This explanation provides you a comprehensive argument relating to Strategic supply chain management
Strategic Procurements: Supply Chain Management
Congratulations on your recent promotion to Engagement Manager for Strategic Procurements, Incorporated. Your new role will leverage your skills in supply chain management consulting, logistics, and procurement for various industries, which will offer many challenging opportunities.
In 1985, Drake Porter founded Strategic Procurements (SPI), a 120-person consulting firm based in Louisville, Kentucky, with a core group of four procurement specialists and a client base of one automobile parts supply chain. Since then, Strategic Procurements has expanded its client base to other auto supply store chains, as well as specialty retail stores across the nation. In 1994, Strategic Procurements developed a proprietary niche software application called PlanTranstic that is used for inventory planning and forecasting for the auto supply store industry. Strategic Procurements' mission is to facilitate the development and implementation of procurement strategies that reduce delivery time, inventory cycle times, and costs associated with supply chain management for its customers.
To accomplish its mission, Strategic Procurements is structured into two core consulting areas represented by a sales force led by the engagement manager. The core consulting areas are responsible for executing the assigned project work and generating possible leads for follow-up by the engagement team. The engagement team is responsible for expanding the current workload with existing customers and nurturing new opportunities. The engagement team and consulting areas often exchange personnel, as one group or another often requires specific, key expertise in supporting a client. The two core areas are auto parts supply and specialty retail. The auto part supply group has 55 people, including a technology team that supports PlanTranstic. The specialty retail group has 24 staff members, while the engagement team is staffed with 10 sales and logistics experts. Strategic Procurements consultants primarily work on a time and materials basis, with a few fixed price contracts, depending on the nature and duration of the work. The majority of projects are six months to a year in duration, with a mix of on-site (customer location) and home office work. The deliverables for these efforts are studies or analyses with key recommendations for improving the client's supply chain management situation. The project team will often identify technology tools, as well as recommend specific strategies for the client. Additionally, the PlanTranstic software is customized for specific customers where appropriate.
The engagement team is primarily focused on keeping the auto parts and specialty retail pipeline filled with consulting projects. Yesterday, Drake Porter approached you and requested a briefing on the two-year plan for these core areas. Additionally, he wanted to know how prepared Strategic Procurements is to expand their industry opportunities. Specifically, Drake wants to extend Strategic Procurements' SCM expertise to the medical consulting area, as well as develop expertise in the industrial manufacturing industry. Are these viable areas, and would Strategic Procurements' capabilities translate well into these areas? You've agreed to examine these possibilities and meet with existing and new clients to better understand the industry needs.
Strategic Procurements has been approached by a local hospital inquiring about the company's ability to improve its logistics and supply chain. It currently has a rudimentary, localized operation in place without an overall governance or strategy process in place. The company has requested an initial briefing on modern supply chain management techniques. Develop a paper for the hospital management consisting of the following sections:
1. Define supply chain management.
2. Describe the essential components of a typical supply chain management process and define the components using examples.
3. Define push, pull, and hybrid high-level strategies, recommend one for the hospital, and rationalize your recommendation.