CHAPTER 1 SUPPLY CHAIN MANAGEMENT: AN OVERVIEW LEARNING OBJECTIVES The major objectives of this chapter are:
Explain how efficient and effective supply chains can improve customer fulfillment and cash flow. Discuss the development and shaping of supply chains in leading organizations and understand their contributions to their financial viability. Appreciate the important role of supply chain management among private as well as public or nonprofit organizations. Understand the contributions of supply chain management to organizational efficiency and effectiveness for competing successfully in the global marketplace. Explain the benefits that can be achieved form implementing supply chain best practices. Understand the major supply chain challenges and issues facing organizations currently and in the future.
CHAPTER OVERVIEW Introduction The first decade of the twenty-first century was a period of rapid change for most organizations, especially businesses. That rate of change has not slowed down, and the second decade has been more volatile than previous years. The external forces of change require organizations to be much more nimble and responsive; that is, organizations need to be able to change and/or transform themselves to survive in the intensely competitive, global environment. Shaping the Supply Chains of the 21st Century: Evolution and Change The rate of change has accelerated, both in U.S. domestic business and globally. A key to understanding how to respond to this change is to gain a perspective on the forces of change. Globalization Many believe that globalization has replaced the “cold war” of the post-World War II era as the driving force for world economics. Beginning in the 1970s, U.S. firms began procuring more globally. Firms started asking:
Where in the world should they source?
Where in the world should they manufacture 1-1 IM Supply Chain Management: A Logistics Perspective