Identify the major trends in supply management and their impact from a strategic perspective
What will be an ideal response?
Answer: The trends in supply management identified in this section are sustainable supply and supply chain disruptions. Sustainable supply or "eco-friendly" production, is becoming an important supplier selection criterion. Firms are looking for ways to reduce, reuse, and recycle, especially as the end user becomes more aware of supply chain membership and votes with their wallet.
As supply chains become more extended and firms depend even more on outside companies to provide critical goods and services, many firms are feeling the sting of disruptions to the supply chain. Causes of supply chain disruptions vary from natural disasters to manmade, but in a recent survey of senior executives at Global 1000 companies, the respondents identified supply chain disruptions as the single biggest threat to their companies' revenue streams. The complexity associated with multiple links in the supply chain increases the probability of disruptions.
From a strategic perspective, a company perceived as being "greener" than its competition may win orders that it otherwise wouldn't. Streamlining and outsourcing (or offshoring) allow a company to become more productive by having companies better-suited to produce the outsourced component or service do just that. This carries with it the risk of supply chain disruption, which is deleterious to their competitive position.
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______ is the CHARACTER COUNTS! character pillar defined as, “Be impartial and make decisions based on sound knowledge.”
A. Trustworthiness B. Fairness C. Responsibility D. Citizenship
When Jocelyn interviewed for a position at TruTech, the interviewer told her about the downsides to the job, including the need to work long hours on occasion and the stress that sometimes accompanies tight deadlines. The interviewer was using
A. honesty recruiting. B. a realistic job preview. C. balance recruiting. D. a negative or positive job assessment.
Mutual agency of the owners is not present in a corporation as it is in a partnership
Indicate whether the statement is true or false
Which one of the following statements is TRUE?
A. A corporate golf club membership is an example of a nonpecuniary benefit B. Firms borrowing money have greater flexibility to use that money when there are debt covenants. C. When lenders protect themselves from the risk of asset switching by raising the interest rate, the firm's WACC can decrease. D. A lender calling in a corporate loan and then lending the funds out to a safer borrower is an example of asset switching. E. A supplier substituting a lower-quality raw material without approval is an example of asset switching.