Week Chapter Questions

Team Oriented: You will become part Of a special, elaborate team when you become part of supply management. The team will consist of engineers, operations, and quality people and suppliers to help the firm obtain necessary supplies, materials, and services as the vignette alluded. Competitive Salary: Starting salaries in supply management arena is lucrative. Although education and experience drives your starting salary, possessing minimum education (Associates Degree) and limited to none experience will still prove to be beneficial in regards to your salary. . Describe seven ways in which supply management has an impact on a firm’s sales. Listed below are seven ways in which supply management has an impact on firm’s sales: Faster to Market: Bottom line – The faster you can introduce a new product or service to the market, the larger market share you will encompass. Improved Quality: Leasing the total number of defects that a manufacture produces, the more they can command premium prices. Furthermore, having a reduced of defects can satisfy your customers and alleviate them from amount going to competitors.

Price Flexibility: Having a strategic outlook can significantly reduce the total cost. Example: Is it more beneficial to lease a vehicle than to buy one? Would surmise that leasing would; lease vs.. Purchase analysis is the key. Innovation: Collaboratively communicate with your supply base; holds a lucrative percentage of all new successful products. Enhanced Customer Satisfaction: Customer service drives sells – up and down – depending on the service rendered. Customer Fulfillment Flexibility: Strategically planning allows more lead-time and flexibility if changes may occur.

Shorter Cycle and Lead Time: Improved supplier camaraderie and participation in supplier product and process improvements is advantageous. 13. Why does support for strategic supply chain management have to come from the top management of an organization? Strategic supply chain management has to come from the top due to their position. If they are not cascading appropriately, then their subordinates will not buy in to what they are trying to achieve. Chapter 2 1 . Why is supply management’s position in the corporation’s organizational structure important?

Organizational structure significantly influences the department’s capability to function optimally and persuade the decision- making process involved in effective procurement. The higher supply management is on the organizational chart, the more he/she can influence corporate strategy considerably. 4. Why are many organizations using a hybrid approach to decision-making authority in their supply management? Organizations are using hybrid approaches in decision-making authority in their supply management, to cut down on cost.

In the early 1 sass, the introduction of computers made it considerably more accessible, in regards to procuring goods and services. Electronic billing and payment of invoices, enhanced cash flow while minimizing the total cost of doing business. 7. Identify some ways in which cross-functional teams could be useful in developing new products or completing value analysis functions. Cross- functional teams could be useful in developing or completing value analysis functions in regards to the development or addendum to a statement of work.

Take for instance, an upcoming complex food service contract. You may not be a food service subject matter expert – no worries. Surround yourself with subject matter experts, to create the statement of work. Personnel that should be involved are the contract officer, contract officer representative, technical expert(s), lawyer(s), and any other representative that will facilitate with the statement of work. Chapter 3 3. How can engineering product specifications affect the price of the product?

Material specified by engineering must be cost effective, to have an idea return on investment in regards to the price of the product. Preferably, you would like to have your material accessible by multiple suppliers for a more resourceful, low-cost manufacturer. Although, you want to get the best deal (bang for the buck), ultimately, you want to ensure your product is justifiable for your customers. 4. How can a product that costs more save the company money overall? Products that cost more can inevitably save the company none overall by purchasing a more reliable, durable and/or cost efficient product.