Supply Chain Mgmt

Date: August 4, 2008
Time: 11 PM
Place: Kitchen

Classmate posted:
"The objective of the supply chain management is to produce high quality merchandise that is cost effective by way of making the suppliers partners in an ever-changing marketplace and the competitive advantage of this can produce a long-term strategic relationship with a few suppliers. This idea takes the competition away from each other which maximizes ultimate customer value and service."

My response:
"
Good points but I think the main goal is to increase the sales of goods or services to the consumer while reducing inventory and operating expenses.
Whether or not the merchandise is high quality or cheap depends on the business strategy of the firm. It is best if all suppliers in the chain are on the same page and are working together to achieve a low-cost, responsive, or differentiation strategy.

To be sucessful today, I'd suggest that a firm use vertical integration or the virtual company business model. This is when a company focuses on its core competencies and partners up with other firms with capabilities that compliment. The text referred to Jaguar making every little part that goes into its cars- even the window washers! By focusing more on its core competencies, it is able to have competitive advantage."