Aspects Of Supply Chain Management - 1209 Words

Aspects of Supply Chain Management Introduction The basic reason for negotiating a contract is to reduce risk, and establish who bears the cost of the risk incurred. Identifying the responsibility of the parties and avoiding finger pointing when a business operation goes bad. Perkins (2008), in studying risk and reward contracts states that risk and reward contracts are highly specialized, and require careful and creative management to create. In constructing a risk and reward contract they take extra time and effort, but if designed and written properly, a risk and reward contract can provide benefits that can more than compensate for the additional effort. A well-designed risk and reward contract can be a motivating factor to suppliers, using a system of incentives and penalties to achieve desired results. During this paper we will briefly analyses the risk and reward factors involved when creating a contract. The onset of globalization has both altered and redirected the way a business organization does business, both domestic ally and internationally. One of the key areas in which globalization has changed business is in how these changes affected the legal aspects of business in contracts and negotiations. According to Wisma (2008),NAFTA, Free Trade Agreements, Import/Export laws, and European Union policies have spurred the creation of a worldwide network of suppliers, vendors, and partnering institutions that spans nations and continents. Companies are changing theShow MoreRelatedThe Primary Aspects of Supply Chain Management964 Words   |  4 Pageswas: Blanchard, D. (2010). Supply chain management best practices. Hoboken, NJ: John Wiley Sons. Chopra, S., Meindl, P. (2010). Supply chain management: Strategy, planning and operation (4th ed.).Upper Saddle River, NJ: Prentice Hall. Home Depot Corporate. (2006). Our CompanyÃÆ' Values. Retrieved from http://corporate.homedepot.com/wps/portal/ Mentzer, J. T., Dewitt, W., Keebler, J. S., Min, S., Nix, N. W., Zacharia, Z. D. (2001). Defining supply chain management. Journal of Business LogisticsRead MoreLegal Aspects of Supply Chain Management Essay2010 Words   |  9 PagesLegal Aspects of Supply Chain Management Internet has definitively changed the relationships of the company with the different business partners of the supply chain. E-Commerce/E-Business is any ‘net’ business activity that transforms internal and external relationship to create values and exploit market opportunities driven new rules of the connected economy.†(Damanpour 2001). It refers to all forms of business activities conducted across the internet. This can includeRead MoreCompetitive Supply Chain Relationship Management Essay1416 Words   |  6 PagesCOMPETITIVE SUPPLY CHAIN RELATIONSHIP MANAGEMENT PRACTICES IN ORGANIZATIONS PRACTICES THROUGH COMPETITIVE PRIORITIES. Over the years, the competition landscape for most companies has shifted from the highest-quality, lowest priced product or best performing product to the ability to respond to market needs quickly and get the right product at the right time to the right customer. This has in turn forced organizations to compete with their supply chain. Understanding supply chain management and puttingRead MoreIbm Supply Chain1592 Words   |  7 Pages* Supply Chain Management In IBM: * Early 1990’s: decentralized geographic and functional departments * Mid-late 1990’s: Distribution and logistics functions centralized into a global organization with world-wide responsibility * Early 2000’s: merger of Customer Fulfillment, Procurement, Manufacturing, and Global Logistics/Distribution functions into a new global Integrated Supply Chain function * Result: cost savings of $5.6B in 2002 and $7B in 2003 * A Case studyRead MoreInformation Technology and Supply Chain Management in Amazon.com684 Words   |  3 Pagesï » ¿Information Technology and Supply Chain Management in Amazon.com Introduction The most critical component of the Amazon.com business model is the efficient, profitable performance of its supply chain. For online retailers who compete in high velocity sales environments, the ability to orchestrate suppliers across a very broad supply chain is critical for their continual profitable operation and growth (Albors-Garrigà ³s, Hervas-Oliver, Mà ¡rquez, 2009). Integral to this aspect of Amazons business modelRead MoreCrocs Case Study Essay1060 Words   |  5 Pagesvalue chain management system. Foregoing traditional models, Crocs quickly acquired and established a world-wide network of supply, manufacturing, production, and delivery systems. This gave Crocs the ability to minimize costs, maximize efficiency, and deliver the best value to their customers. Within this customer-focused framework, Crocs created a unique global value management system, superior in execution and focus when compared with traditional supply chain systems. Traditional Supply ChainRead MoreLogistics And Supply Chain Management1379 Words   |  6 Pagestechnology and the consulting firms that service them, they are scrambling to hire people with Supply Chain expertise, but these experts are hard to come by. Supply Chain Management has moved from a necessary evil to a core competency at companies across industries. I am applying for admission to the Master of Logistics and Supply Chain Management because I want a career in the Supply Chain Management. In particular, I am interested in factors that affect the competitive performance of a businessRead MoreSupply Chain Management : Tesco And Safeway1392 Words   |  6 PagesSupply Chain Management Supply chain management has emerged as an important aspect in the modern business environment in light of the challenges businesses face because of rapidly changing customer expectations, inefficient product development processes, and increased cost of operations and human resources. This concept is increasingly considered as a new means of managing businesses and increasing performance and profitability. However, business enterprises must consider various aspects relatedRead MoreThe article describes about the supply chain management and various activities and programmes800 Words   |  4 PagesThe article describes about the supply chain management and various activities and programmes involved in supply chain management. The author even explains different phases in the evolution of supply chain management. Mainly focuses on the 7 principals which bring host of competitive advantage to the company. Andersen consulting listed all the 7 principles and briefly explained them. The role of logistic professionals and the use of technology in the implementation of the system. The relation betweenRead MoreDistribution Systems: Concentrated Clustering812 Words   |  4 PagesClustering | Case Assignment - Module 2 | Jaime 10/30/2012 | The Core of Concentrated Clusters Since the definition of supply chain management is, the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer, it only makes sense then that placing each part of the supply chain in close proximity to one another makes for easier oversight. (Rouse, 2010) This is the basis for the clustering theory. (DeWitt