Internal and External Challenges Essay

5138 Words Apr 12th, 2013 21 Pages
World Class Supply Chain Management
A supply chain is a network of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage.
Transform inputs in the form of materials and information into outputs in the form of goods and service.
Supply Chain processes are the operational heart of a company and are critical to achieve the level of cost, working capital investment and service needed to guarantee the profitability.

Supply Chain managers normally work in the continuous effort to achieve this goal by managing many different trade-offs: "if I need to increase the service my inventory costs will certainly raise", "how to prevent
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* "World-class" companies view the entire marketplace where they do business, and the individual people populating it, as a vitally important constituency. They make a genuine and continuous effort to stay "in touch" with what their customers and, equally important, their prospective customers are thinking and saying, particularly where the company’s products and services are concerned. * These are the companies that know that their long-term success rests more on how good of a "corporate citizen" they are than on the current quarter’s profit and loss statement. They make a genuine effort to give back something to the communities where they are located, either in time and commitment or in dollars, or, ideally, both. * To these companies there are essentially two classes of people, those who are already their customers and those whom they would like to make their customers, which, quite often, is everybody who isn’t yet their customer. That means they treat everyone they come into contact with, either directly or indirectly, with respect and consideration. * These companies continually strive to be innovative, both from the standpoint of their products and services as well as in the way they conduct their business. They know instinctively that their best long-term prospects lie in delivering the kinds of products and services their customers (and prospective customers) want and need, at prices they can afford, and in a manner that clearly takes the

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