Supply Chain Relationships

Supply Chain Relationships

INTRODUCTION

 

In this unit, you will learn about the risks and benefits of outsourcing and how to make good choices in outsourcing for your company. You will learn about the many factors that need to be considered in this decision that can make the yes-or-no decision of outsourcing extremely complicated. Simply focusing on the bottom line is insufficient to provide enough data for this decision. Often the obvious issue is the labor cost because that is a major factor in the costing of a product; up to 80 percent of product cost can be labor. However, do not forget that the supply chain itself is a cost, not counted as a product cost normally, and this is often not considered well in the analysis of outsourcing. For example, if you have a 2-week pipeline today for your domestic supply chain, extending your supply chain to China can mean an 8-week transportation delay. This means your pipeline inventory will increase four times the current size and the time to payment can be delayed by 2–3 months, consequently increasing inventory and reducing cash flow immediately. Despite looking at the bottom line, this is not a well-understood issue by finance managers with no experience in supply chain management. If you have a highly variable demand profile, your inventory may even increase more to deal with the variance. When you add theft of product in transit at high levels and losses due to shipping containers that fall off ocean freighters, the costs and risks can begin to reduce the attractiveness of the outsourcing plan. Careful consideration of all the factors is extremely important. This is further complicated in the international arena because you now have country risk factors to consider along with company risk factors.

While there is no one method nor easy choices, there are some best practices for determining the best choice for your company. Consider that necessity of good record keeping and sharing of information between suppliers and your company for the supply chain to operate effectively.

 

Readings

Use your Global Logistics and Supply Chain Management text to read the following:

  • Chapter 3, “Supply Chain Relationships,” pages 34–56.

Use the Capella library to read the following:

 

Use the Internet to read or view the following:

 

Assignment Preparation

In Unit 1, you selected a product- and service-based Fortune 1000 company. You will analyze and evaluate this one company in four related assignments. Each assignment applies different aspects of theory and practice to the selected company’s approach to GSCM.

The first of the four related assignments will be due in the next unit:

  • Unit 3 – Logistics and Supply Chain Context (Units 1–3).
    • Purpose: Analyze and evaluate the role of collaboration in a selected company’s approach to GSCM.
  • Unit 6 – Logistics and Supply Chain Operations (Units 4–6).
  • Unit 9 – Supply Chain Designs (Units 7–9).
  • Unit 10 – Executive Presentation (Unit 10).

 

Other Resources

Access the Supply Chain Risk Assessment Survey [DOCX].

  • Review the risk factors relevant to the company you selected to analyze throughout this course and update the survey according to new information you may have discovered in your research.

 

ASSIGNMENT DETAILS

Writing and Sharing an Executive Summary

For this discussion:

  • Explain the collaboration issues your selected company is facing in GSCM.
  • Evaluate the various collaborative choices for GSCM that the company could choose.
  • Use the supply chain management collaboration evaluation tool to evaluate the collaborations of the company.
  • Develop an executive summary for the managers of supply chain management at the company, explaining the issues you found with the supply chain management collaborations.
    • Do these collaborations appear to be following best practices?
    • Is there a balance between regions, collaboration types, and supplier types?
    • What changes would you suggest that could improve the situation, if needed?
    • How does your company oversee quality and share information with their suppliers?

Your initial post must include all the assigned readings and must be 250–600 words in length. Remember to list your references in current APA format at the end of your post.

 


What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."


"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"


Related posts:

  1. ANALYZE MOTIVATIONAL THEORIES AND THEIR IMPACT ON WORK BEHAVIOR AND PERFORMANCE.
  2. Identify a professional nursing organization and review their position on interprofessional practice
  3. For katetutor
  4. Perpetual inventory using FIFO
/by