Supply Chain Management Essay

1382 Words Mar 18th, 2015 6 Pages
Case study (Chapter 1)
The case revolves around Don’s indecisiveness in pitching in Supply Chain Management (SCM) into Med-Tec business model. Don’s indecisiveness stemmed from several sources that imbedded doubts into his mind wondering whether SCM is just another fad whose benefits are overstated and the costs are understated. Don Kagey was the vice president of purchasing and operations at Med-Tec, a supplier of disposable medical equipment to the hospital industry. He has spent the past 2 years in implementing Six Sigma and lean manufacturing in reducing defects and increasing productivity. But the recent hype about SCM has gotten him thinking if it can indeed benefit Med-Tec too if it is implemented. Together with his
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For example they have Courtyard by Marriot catering to the need of business travellers, Residence Inn by Marriot for the extended-stay traveller, and Fairfield Inn for the budget-minded travellers. While Marriot focused in doing what they are good at which is in providing a world-class accommodation services, they can rely on their suppliers in the up-stream to provide them with all the needed material for them to construct the hotels for example suppliers of mattresses, food and beverages, contractors and so on. This interdependency within Marriot supply chain proves inter-reliance between every key players thus resulting in an effective usage of supply chain in complementing to Marriot business’s needs and ultimately satisfying the need of the consumers.
Another example that can amplify the importance of SCM in a business is the success of Honda in achieving annually best automobile brand. Honda successes comes from their continuous effort poured into their supply chain. The flow of trust from one key players to another players is crucial in the supply chain of Honda. 85% of Honda’s automobile’s parts are acquired from different sources of suppliers therefore it is crucial that they keep track of all of their suppliers progress and establish a close collaborative business relationship. In the down-stream, Honda made sure that they acquired the

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