Strategic Purchasing and Logistics.

Added on - Sep 2019

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Strategic Purchasing and LogisticsQuestion:Describe a similarity or a difference between a modern supply chain versus earlierdistribution channels?Answer:Although the current strategy implemented in supply chain management varies a lotfrom the conventional distribution channels, but still there is a very crucial resemblance and islisted as a pre-requisite for a successful channel. This involves procurement of raw materials.Every organization needs a supplier or multiple suppliers for obtaining raw materials so that theorder from customers can be fulfilled at the earliest. This also gives time to the organization forassessing the quality of raw materials received thereby regulating the quality and freshness of theproduct delivered. The tenders passed for the procurement of raw material give enough time forthe suppliers to assess the need of the market and also that of the company. Both the traditionaland modern supply chains, however, differ in the strategies being adopted for associating morecustomers, but still, the foundation parameters for starting and initiating these supply chainmanagement are same.Question:The supply chain extends from needs identification to products delivery and includesseveral independent activities. Please describe your perspective of the criticality of one of thesefunctional areas?Answer:Supply chain involves several critical steps that are monitored by various individualparties. However, at all time there is a real time data sharing and communication between thefocal company and its partners. This may involve links with suppliers that further communicatewith various suppliers for obtaining raw materials and connection with the wholesale distributorswhich are further linked to retailers. Suppliers play an imperative and crucial role in any supplychain management as they are responsible for providing quality raw materials, raw materials atcompetitive prices that are otherwise available at higher prices in the market. All theseparameters control the cost and quality of the product leading to greater consumer satisfactionand help supplier to build stronger alliances and effective management. Apart from providingsubstantial components for manufacturing any commodity, suppliers also tend to play afundamental role in assessing the launch of new products. They can share the information withtheir clients which helps the focal company to compete with other brands available and updatetheir products as per the demands of the customers.
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