Supply Management Strategy
What is a supply network and why are they so important for companies and business managers? Supply networks allow us to look at the big picture; giving us a better understanding of the flow of materials and information (Dust, Process and cost potentials t
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Supply Management Strategy
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Supply Networks, Segmentation and Categorisation
2.1.1 Supply Networks What is a supply network and why are they so important for companies and business managers? Supply networks allow us to look at the big picture, giving us a better understanding of the flow of materials and information (Dust 2009). Often organisations focus only on their organisation, that means what they produce or provide and not what the end customer receives. Looking at a supply network enables firms to look at the overall movement of materials and information from start to end customer, allowing organisations to see the value in creating partnerships. The value in working together to ensure the best possible value is provided to the end customer. Supply chain networks describe the flow and movement of materials and information, by linking organisations together to serve the end customer. Supply networks are networks of suppliers that add value to a process, product or service. A supply network is a pattern of processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacturing and delivery of products. It comprises the general state of business affairs in which all kinds of material (work-in-progress material as well as finished components) are transformed and moved between various value-added points to maximise the value added for customers. One of the strategic aims in supply management is the establishment resilient supply networks. A resilient supply network effectively aligns its strategy, operations, management systems, governance structure and decision-support capabilities so that it can uncover and adjust to continually changing risks, endure disruptions to its primary earnings drivers and create advantages over less adaptive competitors. Moreover, it has the capability to respond rapidly to unforeseen changes, even chaotic disruption. The resilience of a supply network is the ability to bounce back and, in fact, to bounce forward with speed, determination and precision. In recent studies, resilience is regarded as the next phase in the evolution of traditional, place-centric enterprise structures to highly virtualised, customer-centric © Springer Science+Business Media Singapore 2017 M. Helmold, B. Terry, Global Sourcing and Supply Management Excellence in China, Management for Professionals, DOI 10.1007/978-981-10-1666-0_2
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2 Supply Management Strategy High Competence of Product
QCDE and Guanxi Criteria
A-Supplier Relationship to enterprise
Integrated supplier Module supplier Sytems supplier
High Competence of Process
Component / Parts supplier
Raw material supplier
Fig. 2.1 Supply management pyramid (Adapted from Helmold 2011)
structures that enable people to work anytime, anywhere. Resilient supply networks should align their strategy and operations to adapt to risks that affects their capacities. There are four levels of supply chain resilience. First is reactive supply chain management. Second is internal supply c
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