Guidelines:

1. Strictly use the template

2. Use Times New Roman
3. Use 25 to 35 font size
4. 7 lines, 7 words
5. Provide proper citation in every slides.
6. You can use infographics, pictures (3x5) with description, videos with
attached link and others.
7. Do not read your presentation. Analyze and discuss.
8. If you want to highlight important data you may use the notes.
 Chapter 8: Supply Chain Management

Delos Reyes, Sheryn

Labarosa, Marahvella
Nobleza, Jay-Ann
Tacgos, Bea
Tanong, Maricel
Villanueva, Danica
Calunce, Josid

Capiz State University. College of Management

Learning Objectives
8.1 Explain the terms supply chain and logistics.
8.2 Name the key aspects of supply chain
management.
8.3 List and briefly explain current trends in supply
chain management.
8.4 Outline the benefits and risks related to
outsourcing.
8.5 Explain what the main supply chain risks are
and what businesses can do to minimize those risks.

Capiz State University. College of Management

 Learning Objectives
8.6 Describe some of the complexities related to global
supply chains.
8.7 Briefly describe ethical issues in supply chains and
the key steps companies can take to avoid ethical
problems.
8.8 Describe the three concerns of small businesses
related to the supply chain and suggest ways to manage
those concerns.
8.9 List several strategic, tactical, and operational
responsibilities related to managing the supply chain.
Capiz State University. College of Management
 Learning Objectives
8.10 Discuss procurement in terms of the purchasing
interfaces, the purchasing cycle, ethics, and centralized
versus decentralized decision making.
8.11 Briefly describe the key aspects of supplier
management.
8.12 Discuss the logistics aspects of supply chain
management, including RFID technology.
8.13 Discuss the issues involved in managing returns.
8.14 Describe some of the challenges in creating an effective
supply chain and some of the trade-offs involved.
Capiz State University. College of Management
Definition of Terms
Appraisal costs: Costs of activities designed to ensure quality
or uncover defects. (Stevenson, 2021)
Backup Delivery: Alternative transportation options for
moving goods from suppliers to customers, often used to
mitigate disruptions in the primary delivery network.
(Stevenson, 2021)
Backup Suppliers: Alternative suppliers that can be used if the
primary supplier experiences problems or disruptions.
(Stevenson, 2021)
Baldrige Award: Annual award given by the U.S. government
to recognize quality achievements of U.S. companies.
(Stevenson, 2021)
Capiz State University. College of Management
 Definition of Terms
Benchmarking: Process of measuring performance against the best in
the same or another industry. (Stevenson, 2021)
Brainstorming: Technique for generating a free flow of ideas in a
group of people. (Stevenson, 2021)
Cause-and-effect diagram: A diagram used to search for the cause(s) of
a problem; also. (Stevenson, 2021)
Closed - loop supply chain: A manufacturer controls both the forward
and reverse shipment of products. ( Stevenson, 2021 )
•Cross docking: A technique whereby goods arriving at a warehouse
from a supplier are unloaded from the supplier truck and loaded onto
outbound trucks, thereby avoiding . arehouse storage ( Stevenson, 2021 )

Capiz State University. College of Management

Definition of Terms
Customs Broker: A licensed professional who assists businesses
with navigating customs regulations, completing necessary
documentation, and handling imports and exports. (Stevenson,
2021)
Domestic Suppliers: Suppliers located within the same country as
the business. (Stevenson, 2021)
Exporting: Selling goods or services to customers in other
countries. (Stevenson, 2021)
Importing: Buying goods or services from suppliers in other
countries. (Stevenson, 2021)
Critical Suppliers: Suppliers that are crucial to the business's
operations, often providing essential components or materials.
(Stevenson, 2021)
Capiz State University. College of Management
Definition of Terms
Inventory: The goods or materials a business holds for sale or
use in production. (Stevenson, 2021)
Nonconforming Goods: Goods that do not meet the specified
quality standards or requirements. (Stevenson, 2021)
Reliable Suppliers: Suppliers that consistently deliver high-
quality goods or services on time and at a reasonable price.
(Stevenson, 2021)
Risk Management: The process of identifying, assessing, and
mitigating potential risks to a business. (Stevenson, 2021)

Capiz State University. College of Management

Definition of Terms
Supplier Management: The process of identifying, selecting,
evaluating, and monitoring suppliers to ensure they meet quality,
reliability, and cost standards. (Stevenson, 2021)
Supplier Performance: The effectiveness of a supplier in meeting
the business's requirements, often measured by factors like
quality, reliability, and flexibility. (Stevenson, 2021)
Supply Chain Interruptions: Disruptions to the flow of goods and
materials within a supply chain, often caused by events like
natural disasters, transportation delays, or supplier issues.
(Stevenson, 2021)

Capiz State University. College of Management

Definition of Terms
Vendor analysis: Evaluatingthe sources of supply in termsof
price, quality, reputation,and service. (Stevenson, 2021)
Vendor-managed inventory(VMI): Vendors monitor
goodsand replenish retail invento-ries when supplies are low.
(Stevenson, 2021)
Warning Signs: Indicators that a supplier is experiencing
problems or may not be able to meet its obligations, such as
late deliveries, incomplete orders, or quality issues.
(Stevenson, 2021)

Capiz State University. College of Management

Introduction/Rationale
In this chapter, you will learn about recent
trends in supply chain management, key
supply chain processes andmanagement
responsibilities, procurement, logistics,
managing returns, managing risks, and
creating an effectivesupply chain

Capiz State University. College of Management

Learning Objective Number 8.1:Explain the
terms supply chain and logistics
Introduction: Stevenson W. J.
(2021). Operations Management
(14th ed.). McGraw-Hill Education

Capiz State University. College of Management

 A supply chain is the sequence of organizations their
facilities, functions, and activities that are involved in
producing and delivering a product or service. The
sequence begins with
basic suppliers of raw materials and extends all the
way to their final customers. Facilities
includewarehouses, factories, processing centers,
distribution centers, retail outlets, and offices.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Supply chain management is the strategic coordination
of business functions within a business organization
and throughout its supply chain for the purpose of
integrating supply and demand management.
Supply chain managers are people at various levels of
the organization who are responsible for managing
supply and demand both within and across business
organizations
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Logistics the movement of goods, services, cash, and
information in a supply chain, logistics is the part of a supply
chain involved with the forward and reverse flow of goods,
services, cash, and information.
Logistics management includes management of inbound and
outbound transportation, material handling, warehousing,
inventory, order fulfillment and
distribution, third-party logistics, and reverse logistics (the
return of goods from customers).
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Supply chains are sometimes referred to as value
chains, a term that reflects the concept
that value is added as goods and services progress
through the chain.
The supply or value chain has two components for
each organization :
1. Supply component
2. Demand component
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Learning Objective Number 8.2: Name the key
aspects of Supply Chain Management
Stevenson, W. J. (2021). Operations
Management (14th ed.). McGraw-Hill
Education

Capiz State University. College of Management

 Managing the supply chain is the process of
planning, implementing, and
controlling supply chain operations. The
basic components are strategy,
procurement, supply management, demand
management, and logistics
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Key aspects relate to:
• Determining the appropriate level of outsourcing
• Managing procurement
• Managing suppliers
• Managing customer relationships
• Being able to quickly identify problems and
respond to them
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 The goal of supply chain management is to match
supply to demand as effectively and efficiently as
possible
An important aspect of supply chain management
is flow management. The three types of flow that
need to be managed are product and service flow,
information flow, and financial flow.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Figure 8.1 :

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Learning Objective Number 8.3: List and
briefly explain current trends in supply
change management.

• Trends in Supply Chain Management

Stevenson, W. J. (2021). Operations
Management (14th ed.). McGraw-Hill
Education
Capiz State University. College of Management
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Trends in Supply Chain Management
Although different industries and different businesses vary
widely in terms of where they are in the evolution of their
supply chain management, many businesses emphasize the
following:
• Measuring supply chain ROI
• “Greening” the supply chain
• Reevaluating outsourcing
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 • Integrating IT
• Managing risks
• Adopting lean principles
• Being agile
• Adopting blockchain technology
• Establishing transparency
• Adopting new delivery modes
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 • Adopting new delivery modes

Amazon's "Prime Air" Drone Domino's pizza driverless car

Reference:
https://www.tradeready.ca/2017/topics/supply-chain-management/3-innovative-new-delivery-methods-changing-shipping-know/

Capiz State University. College of Management

Learning Objective Number 8.4: Outline
the benefits and risks related to
outsourcing.
•Benefits and risks related to outsourcing
Corbett et al., December 15, 2007

Capiz State University. College of Management

 Benefits and risks related to outsourcing
• Measuring supply chain ROI. - enables managers to incorporate
economics into outsourcing and other decisions, giving them a
rational basis for managing their supply chains.
• Greening the supply chain - is gaining interest due to corporate
responsibility, regulations, and public pressure. It involves
redesigning products, reducing packaging, near-sourcing, choosing
green suppliers, managing returns, and implementing end-of-life
programs.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 • Reevaluating outsourcing
Companies are reconsidering outsourcing, particularly to global
suppliers, due to various reasons such as lower labor costs, focusing
on core strengths, converting fixed costs to variable costs, freeing up
capital, shifting risks to suppliers, and ease of expansion. However,
potential difficulties include inflexibility, increased transportation
costs, language and cultural differences, job loss, lower productivity,
knowledge transfer, intellectual property security concerns, and
increased supply chain management effort.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 Cargo ship accident off the Mumbai
Reference:
Divyakant Solanki/EPA/Shutterstock

Capiz State University. College of Management

 • Integrating IT
Produces real-time data that can enhance strategic
planning and help businesses to control costs,
measure quality and productivity, respond quickly to
problems, and improve supply chain operations. This
is why ERP systems are so important for supply
chain management.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 • Managing risks
Managing risks. For some businesses, the supply chain is a
major source of risk, so it is essential to adopt procedures for
managing risks. According to a Deloitte survey,2 45 percent of
supply chain leaders lack confidence in their risk management.
The following section discusses sources of risk and actions
businesses can take to reduce risks.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 • Adopting lean principles
Lean principles are being adopted by businesses to
enhance their supply chains, addressing weaknesses in
traditional systems. This involves eliminating non-value-
added processes, improving product flow, reducing
suppliers and certification programs, and adopting a
continuous improvement attitude.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 • Being agile - Being agile means that a supply chain is flexible
enough to be able to respond fairly quickly to unpredictable
changes or circumstances, such as supplier production or quality
issues, weather disruptions, changing demand (volume of demand
or customer preferences), transporting issues, and political issues.

• Adopting blockchain technology - Blockchain technology enhances

supply chain accuracy and efficiency by securely recording
transactions in real-time across various stakeholders, eliminating
manual processes and transforming the process from days to seconds.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 • Being agile - Being agile means that a supply chain is flexible
enough to be able to respond fairly quickly to unpredictable
changes or circumstances, such as supplier production or quality
issues, weather disruptions, changing demand (volume of demand
or customer preferences), transporting issues, and political issues.
• Adopting blockchain technology - Blockchains securely record
transactions across an organization's supply chain, improving
accuracy and efficiency by eliminating manual processes and
transforming them into automated processes in seconds.
Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

Learning Objective Number 8.5: Explain what the main
supply chain risks are and what businesses can do to
minimize those risks.

The main supply chain risks are and what businesses can do
to minimize those risks.
Stevenson, W.J. (2021). Operations Management ( 14th ed.).
McGraw- Hill Education

Capiz State University. College of Management

 Risk management and Resiliency
Risk management involves identifying, assessing,
and developing strategies to address potential
risks, including risk avoidance, risk reduction, and
risk sharing with supply chain partners. Strategies
can include not dealing with suppliers, replacing
unreliable ones, and implementing contractual
arrangements to spread risk.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Risk Management and Resiliency
Resiliency refers to a business's capacity to
recover from adverse events affecting its
supply chain, influenced by the severity of the
impact and the preparedness, which can be
mitigated by risk management.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Risk management involves identifying potential risks in
the supply chain, which can be categorized into natural
disasters, supplier issues, quality issues, and the potential
for suppliers to disclose sensitive information to
competitors.
These risks can disrupt shipping, affect suppliers directly
or indirectly, and may lead to product recalls, liability
claims, and negative publicity. Identifying these risks is
crucial for maintaining a competitive advantage.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Key elements of successful risk management include:
Knowing your suppliers.
Mapping the supply chain helps identify suppliers, identify potential
concentrations, and understand the scope of the supply chain,
potentially enhancing risk and potentially reducing the desire for
supply chain simplification.

Providing supply chain visibility.

Supply chain visibility allows major trading partners to access real-
time data on inventory levels and shipment status, requiring data
sharing.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Key elements of successful risk management include:
Developing event-response capability.
Event-response capability is crucial in managing unplanned
events like delayed shipment or warehouse shortages. It involves
monitoring, notifying, simulating potential solutions, and
measuring the long-term performance of suppliers, transporters,
and other supply chain partners.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Shortening the Supply Chain
As businesses search for ways to reduce
transportation time and cost, some are
placing more emphasis on using nearby
suppliers, storage facilities, and processing
centers.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Learning Objectives Number 8.6 Describe some
of the complexities related to global supply
chains.

The complexities related to global supply chains

Stevenson, W.J. (2021). Operations Management
(14th ed.). McGraw-Hill Education

Capiz State University. College of Management

 GLOBAL SUPPLY CHAINS
Businesses are increasingly outsourcing and
expanding their global supply chains, leading to
increased complexities in product design and
logistics.
These complexities include language and cultural
differences, currency fluctuations, time differences,
armed conflicts, increased transportation costs, and
increased trust among partners.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 GLOBAL SUPPLY CHAINS
Managers must also analyze factors like local
capabilities, financial, transportation, and
communication infrastructures, governmental,
environmental, regulatory, and political issues to
ensure the success of global supply chains.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

GLOBAL SUPPLY CHAINS
Risk management is crucial in global supply chain management
due to factors like supply, costs, and demand. Firms may increase
inventory to compensate for these risks, losing some benefits of
global sourcing. Other risks include intellectual rights, contract
compliance, competitive pressure, forecasting errors, and
inventory management.
Technological advances in communications have enabled real-
time information exchange, integrating operations across global
supply chains. However, some parts of the globe remain
unconnected.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 ERP AND SUPPLY CHAIN MANAGEMENT
ERP integration in supply chain management is a formal approach to
effectively plan and manage business resources. It involves establishing
operating systems and performance measurements to meet business and
financial objectives.
ERP encompasses activities like demand planning, supply management,
inventory replenishment, production, warehousing, and transportation.
ERP software centralizes transaction data and provides systemwide
visibility of key activities in areas like supplier relationships,
performance management, sales, order fulfillment, and customer
relationships.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Supplier Relationship Management - ERP integrates
purchasing, receiving, information about vendor
ratings and performance, lead times, quality, electronic
funds disbursements, simplifying processes, and
enabling analysis of those processes.
Performance Management - This aspect of ERP pulls
together information on costs and profits, productivity,
quality performance, and customer satisfaction.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Sales and Order Fulfillment - ERP includes the ability to
provide inventory and quality management, track returns, and
schedule and monitor production, packaging, and distribution.
Reports can provide information on order and inventory
status, delivery dates, and logistics performance
Customer Relationship Management - An ERP system not only
centralizes basic contactinformation, details on contracts,
payment terms, credit history, and shipping preferences, it also
provides information on purchasing patterns, service, and
returns.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Learning Objective Number 8.7: Briefly
describe ethical issues in supply chains and
the key steps companies can take to avoid
ethical problems.
• Ethics and Supply chain, W. J. (2021).
Operations Management (14th ed.). McGraw-
Hill Education

Capiz State University. College of Management Reference:

Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.
 8.7 ETHICS AND THE SUPPLY
CHAIN
Examples of unethical behavior in supply chains:

Bribing officials for permits or favorable status

"Exporting smoke-stacks" to developing countries
Misleading claims of a "green" supply chain
Ignoring health, safety, and environmental standards
Violating workers' rights (substandard wages, sweatshops,
forced or child labor)
Mislabeling country of origin
Selling banned goods abroad
Capiz State University. College of Management
8.7 ETHICS AND THE SUPPLY
CHAIN
Importance of developing an ethical supply chain code:

Should guide behavior involving customers, suppliers,

contract negotiation, recruiting, and environmental issues.

Risks of unethical behavior:

Media exposure leads consumers to blame major companies

for infractions committed by independent suppliers.
Difficulties in managing global supply chains due to lack of
communication with all suppliers.
Capiz State University. College of Management
8.7 ETHICS AND THE SUPPLY
CHAIN
Essential monitoring of supply chain activities:

Involves purchasing, manufacturing, assembly,

transportation, service, repair, and disposal.

Key steps to reduce risk of unethical supplier behavior:

Choose suppliers with a good ethical reputation

Include compliance with labor standards in contracts
Build direct, long-term relationships with ethical suppliers
Address problems promptly
Capiz State University. College of Management
8.7 ETHICS AND THE SUPPLY
CHAIN
Characteristics of an ethical and sustainable global supply chain:

Fair wages
Good working conditions
Gender equality
No harm to workers or the environment

Capiz State University. College of Management

8.7 ETHICS AND THE SUPPLY
CHAIN
Characteristics of an ethical and sustainable global supply chain:

Fair wages
Good working conditions
Gender equality
No harm to workers or the environment

Capiz State University. College of Management

Learning Objective Number 8.8: Describe the
three concerns of small businesses related to
the supply chain and suggest ways to manage
those concerns.
• Small Businesses, Stevenson, W. J. (2021).
Operations Manageent (14th ed.). McGraw-Hill
Educatin

Capiz State University. College of Management Reference:

Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.
LO8.8 SMALL BUSINESSES
Importance of Supply Chain Management for Small Businesses:

Small businesses often overlook their supply chains.

Actively managing supply chains can yield several benefits:

1. Increased efficiencies
2.Reduced costs
3.Reduced risks
4. Increased profits
Capiz State University. College of Management
LO8.8 SMALL BUSINESSES
Competitive Advantage:

Smaller size can be an advantage for small businesses.

Small businesses tend to be more agile than larger
companies.
They can make decisions and implement changes more
quickly when necessary.

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES
Key Aspects of Supply Chain Management for Small Businesses:

Inventory management: Efficient tracking and management of

stock levels.

Reducing risks: Identifying and mitigating potential risks in

the supply chain.

International trade: Navigating the complexities of trading

across borders.

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES
Key Aspects of Supply Chain Management for Small Businesses:

Inventory management: Efficient tracking and management of stock

levels.

Reducing risks: Identifying and mitigating potential risks in the supply

chain.

International trade: Navigating the complexities of trading across

borders.

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES
Inventory Challenges for Small Businesses:

Small businesses often carry extra inventory to prevent shortages from

supply chain interruptions.This approach can tie up capital and consume
storage space. Alternatives include:

Establishing backup suppliers for critical items.

Having backup delivery options for suppliers and customer
shipments.
it is advisable to set up these systems in advance to ensure smooth
operations when disruptions occur.

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES
Another area that often needs attention is risk management. The key to
reducing risks is managing suppliers. Important steps are:

• Use only reliable suppliers

• Determine which suppliers are critical; get to know them, and any
challenges they have
• Measure supplier performance (e.g., quality, reliability, flexibility)
• Recognize warning signs of supplier issues (e.g., late deliveries, incomplete
orders,
quality problems)
• Have plans in place to manage supply chain problems

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES

Exporting provides growth

opportunities for small businesses,
but a lack of knowledge can result in
challenges like delays from
nonconforming goods, leading to
customer dissatisfaction.

Capiz State University. College of Management

 LO8.8 SMALL BUSINESSES
Importing can have benefits for small businesses. The Small Business
Administration has some tips for using foreign suppliers:

• Work with someone who has expertise to help oversee foreign

suppliers, preferably someone who spends a good deal of time in that
country. Also, a licensed customs broker can help with laws and
regulations, necessary documents, and working with import-
ers and exporters.

• Describe your buying patterns and schedules to set expectations for

demand and timing.

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES
• Don’t rely on a single supplier; a backup supplier can reduce risk and
provide bargaining leverage.

• Building goodwill can have benefits in negotiations and resolving

problems when they arise.

• Consider using domestic suppliers if the risks or other issues with

foreign suppliers are formidable. Advantages can involve lower
shipping times and costs, closer interactions with suppliers, and
increased agility.

Capiz State University. College of Management

LO8.8 SMALL BUSINESSES
Corporate management responsibilities encompass legal, economic,
and ethical aspects. Legally, companies must understand and comply
with the laws and regulations of the countries in which they operate.
Economically, they are responsible for efficiently supplying products
and services to meet demand. Ethically, businesses should conduct
operations in alignment with societal moral standards.

Capiz State University. College of Management

 LO8.8 SMALL BUSINESSES

U.S. Small Business Administration, “5 Tips for Managing an Efficient Global Supply Chain,” Small Business
Operations, March 12, 2013.

Capiz State University. College of Management

LO8.9 Discuss the Strategic responsibilities,
tactical, operational responsibilities, related to
managing the supply chain.
• Strategic responsibilities, tactical,
operational responsibilities, related to
managing the supply chain, Stevenson
J. (2021). Operations Management
(14th ed.). McGraw-Hill Education
Capiz State University. College of Management
 Strategic Responsibilities
Top management has certain strategic responsibilities
that have a major impact on the sucess not only of
supply chain management but also of the business itself.
hese strategies include:
•Supply chain strategy alignment: Aligning supply and
distribution strategies with organizational strategy and
deciding on the degree to which outsourcing will be
employed.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Network configuration: Determining the number and
location of suppliers, warehouses, production/operations
facilities, and distribution centers.
Information technology: Integrating systems and processes
throughout the supply chain to share information,
including forecasts, inventory status, tracking of
shipments, and events. This is often more difficult to
achieve with small suppliers than with large suppliers..
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 •Products and services: Making decisions on new product and
services selection and design.
•Capacity planning: Assessing long-term capacity needs,
including when and how much will be needed and the degree of
flexibility to incorporate.
•Strategic partnerships: Partnership choices, level of partnering,
and degree of formality.

Reference:
James J. Corbett et al., “Mortality from Ship Emissions: A Global Assessment,” Environmental
Science & Technology 41, no. 24 (December 15, 2007)

Capiz State University. College of Management

 Distribution strategy: Deciding whether to use
centralized or decentralized distribution, and
deciding whether to use the organization’s own
facilities and equipment for distribution or to use
third-party logistics providers
Uncertainty and risk reduction: Identifying
potential sources of risk and deciding the amount
Reference:
of risk that is acceptable.
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Table 15.1 Key Tactical and Operational Responsibilities
Tactical Responsibilities
Forecasting: Prepare and evaluate forecasts.
Sourcing: Choose suppliers and some make-or-buy decisions.
Operations planning: Coordinate the external supply chain and internal
operations.Managing inventory: Jointly decide with suppliers where in
the supply chain to store the various types of inventory (raw materials,
semi-finished goods, finished goods).
Transportation planning: Match capacity with demand.
Collaborating: Work with supply chain partners to coordinate plans.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Operational Responsibilities
Scheduling: Short-term scheduling of operations and distribution.
Receiving: Management of inbound deliveries from suppliers.
Transforming: Conversion of inputs into outputs.Order fulfilling: Linking
production resources and/or inventory to specific customer orders.
Managing inventory: Maintenance and replenishment activities.
Shipping: Management of outbound deliveries to distribution centers
and/or customers.
Information sharing: Exchange of information with supply chain partners.
Controlling: Control of quality, inventory, and other key variables and
implementing corrective action, including variation reduction, when
necessary.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

L08. 10 procedurement in terms of the
purchasing interfaces, purchasing
cycle, ethics, and centralized versus
decentralized
decision making , Stevenson J. (2021).
Operations Management (14th ed.).
McGraw-Hill Education

Capiz State University. College of Management

Purchasing Interfaces
Purchasing has interfaces with a number of other functional areas, as well
as with outside suppliers. It is the connecting link between the
organization and its suppliers. In this capacity, it exchanges information
with suppliers and functional areas. The interactions between purchasing
and these other areas are briefly summarized in the following paragraphs.
Operations constitute the main source of requests for purchased materials,
and close cooperation between these units and the purchasing department is
vital if quality, quantity, and delivery goals are to be met. Cancellations,
changes in specifications, or changes in quantity or delivery times must be
communicated immediately for purchasing to be effective.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Accounting is responsible for handling payments to suppliers and must be
notified promptly when goods are received in order to take advantage of
possible discounts. In many firms, data processing is handled by the
accounting department, which keeps inventory records, checks invoices,
and monitors vendor performance.
Design and engineering usually prepare material specifications, which must
be communicated to purchasing. Because of its contacts with suppliers,
purchasing is often in a position to pass information about new products
and materials improvements on to design personnel. Also, design and
purchasing people may work closely to determine whether changes in
specifications, design, or materials can reduce the cost of purchased items
(see the following section on value analysis).
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Receiving checks incoming shipments of purchased items to determine whether
quality, quantity, and timing objectives have been met, and it moves the goods
to temporary storage. Purchasing must be notified when shipments are late;
accounting must be notified when shipments are received so that payments can
be made; and both purchasing and accounting must be apprised of current
information on continuing vendor evaluation.
Suppliers or vendors work closely with purchasing to learn what materials will
be purchased and what kinds of specifications will be required in terms of
quality, quantity, and deliveries. Sometimes this involves new suppliers instead
of existing suppliers. Purchasing must rate vendors on cost, reliability, and so
on (see the later section on vendor analysis). Good supplier relations can be
important on rush orders and changes, and vendors provide a good source of
information on product and material improvements.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

The Purchasing Cycle

The purchasing cycle begins with a request

from within the organization to purchase
material, equipment,supplies, or other items
from outside the organization and the cycle
ends

Capiz State University. College of Management

 Centralized versus Decentralized Purchasing
Purchasing can be centralized or decentralized.
Centralized purchasing means that purchasing
is handled by one special department. Decentralized
purchasing means that individual depart-
ments or separate locations handle their own
purchasing requirements.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Centralized purchasing may be able to obtain lower prices than
decentralized unitif the higher volume created by combining orders
enables it to take advantage of quantity discounts offered on large orders.
Centralized purchasing may also be able to obtain better service and closer
attention from suppliers. In addition, centralized purchasing often enables
companies to assign certain categories of items to specialists, who tend to
be more efficient because they are able to concentrate their efforts on
relatively few items instead of spreading themselves across many items.

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

 Decentralized purchasing has the advantage of awareness of differing "local”
needs and being better able to respond to those needs. Decentralized
purchasing usually can offer quicker response than centralized purchasing.
Where locations are widely scattered, decentralized purchasing may be able
to save on transportation costs by buying locally, which has the added
attraction of creating goodwill in the community.Some organizations
manage to take advantage of both centralization and decentralization by
permitting individual units to handle certain items while centralizing
purchases of other items. For example, small orders and rush orders may be
handled locally or by departments, while centralized purchases would be
used for high-volume, high-value items for which discounts are applicable
or specialists can provide better service than local
buyers or departments.
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Ethics in Purchasing
Ethical behavior is important in all aspects of business.
This is certainly true in purchasing, where the temptations
for unethical behavior can be enormous. Buyers often
hold great power, and salespeople are often eager to make
a sale. Unless both parties act in an ethical manner, the
potential for abuse is very real. Furthermore, with
increased globalization, the challenges are particularly
great because a behavior regarded as customary in one
country might be regarded as unethical in another country
Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

Reference:
Stevenson, W. J. (2021). Operations Management (14ᵗʰ ed.). McGraw-Hill Education.

Capiz State University. College of Management

LO8.11 BRIEFLY DESCRIBE THE KEY
ASPECTS OF SUPPLIER MANAGEMENT
• Supplier Management, Stevenson, W.J. (2021).
Operations Management (14th ed.). McGraw-Hill
Education
15.10 Supplier Management
• Reliable and trustworthy suppliers are a vital link in an
effective supply chain. Timely deliveries of goods or
services and high quality are just two of the ways suppliers
can contribute to effective operations. A purchasing
manager may function as an “external operations
manager,” working with suppliers to coordinate
supplier operations and buyer needs.

Capiz State University. College of Management

Aspects of Supplier Management
Choosing Suppliers
• The selection process involves evaluating suppliers based on
criteria such as price, quality, reputation, past experience, and
service. A structured vendor analysis is conducted to assess
potential suppliers against these factors.

Capiz State University. College of Management

Table 15.5
Choosing
Supplier
Aspects of Supplier Management
Supplier Certification
Supplier certification is a detailed examination of the
policies and capabilities of a supplier. The certification
process verifies that a supplier meets or exceeds the
requirements of a buyer. This is generally important in
supplier relationships, but it is particularly important when
buyers are seeking to establish a long-term relationship with
suppliers. Certified suppliers are sometimes referred to as
world class suppliers.

Capiz State University. College of Management

Aspects of Supplier Management
Supplier Partnerships
A supplier partnership is the strategic collaboration
between a company and its suppliers. It goes beyond
the conventional transactional model of buying and
selling, building a deeper, mutually beneficial
relationship that involves shared risks, commissions
and a long-term vision for collaborative success.

Capiz State University. College of Management

Aspects of Supplier Management
Strategic Partnering
Two or more business organizations that have
complementary products or services join so that
each may realize a strategic benefit.

Capiz State University. College of Management

TABLE 15.6
Supplier as adversary versus supplier as partner

Capiz State University. College of Management

15.11 INVENTORY MANAGEMENTTORY
MANAGEMENT
• the process of overseeing a company's products from
the raw materials stage to the point of sale. It involves:
Ordering: When to order and how much to order
Storing: Where to store inventory
Tracking: Tracking inventory levels and locations
Shipping: How to ship inventory

Capiz State University. College of Management

 FIGURE 15.4
The Bullwhip Effect

Capiz State University. College of Management

15.12 ORDER FULFILLMENT
Order fulfillment refers to the processes involved in responding to customer orders.
Fulfillment time can be an important criterion for customers. It is often a function of
the degree of customization required. The following are some common approaches:
• Engineer-to-Order (ETO). With this approach, products are designed and built accord-
ing to customer specifications. This approach is frequently used for large-scale construc-
tion projects, custom homebuilding, home remodeling, and for products made in job
shops. The fulfillment time can be relatively lengthy because of the nature of the proj-
ect, as well as the presence of other jobs ahead of the new one.
• Make-to-Order (MTO). With this approach, a standard product design is used, but
production of the final product is linked to the final customer’s specifications. This
approach is used by aircraft manufacturers such as Boeing. Fulfillment time is generally
less than with ETO fulfillment, but still fair

Capiz State University. College of Management

• Assemble-to-Order (ATO). With this approach, products are assembled to
customer
specifications from a stock of standard and modular components. Computer
manufacturers such as Dell operate using this approach. Fulfillment times
are fairly short, often a week or less.
• Make-to-Stock (MTS). With this approach, production is based on a
forecast, and products are sold to the customer from finished goods stock.
This approach is used in department stores and supermarkets. The order
fulfillment time is immediate. A variation of this is e-commerce; although
goods have already been produced, there is a lag in fulfillment to allow for
shipping.

Capiz State University. College of Management

LO8.12 Discuss the Logistics Aspects of
Supply Chain Management, including RFID
Technology
• Supply Chain Management, including RFID
Technology, Stevenson, W.J. (2021). Operations
Management (14th ed.). McGraw-Hill Education

Capiz State University. College of Management

15.13 LOGISTICS
Logistics refers to the movement of materials, services, cash, and
information in a supply chain. Materials include all of the physical
items used in a production process. In addition to raw materials and
work in process, there are support items such as fuels, equipment,
parts, tools, lubricants, office supplies, and more. Logistics includes
movement within a facility, overseeing incoming and outgoing
shipments of goods and materials, and information flow throughout
the supply chain.

Capiz State University. College of Management

Movement within a Facility
Movement of goods within a manufacturing facility is part of production control.
1. From incoming vehicles to receiving
2. From receiving to storage
3. From storage to the point of use
(e.g., a work center)
4. From one work center to the next
or to temporary storage
5. From the last operation to final storage
6. From storage to packaging/shipping
7. From shipping to outgoing vehicles

FIGURE 15.5
Capiz State University. College of Management
Movement within a facility
Incoming and Outgoing Shipments
• Overseeing the shipment of incoming and outgoing goods comes under the
heading of traffic management. This function handles schedules and
decisions on shipping method and times, taking into account costs of
various alternatives, government regulations, the needs of the organization
relative to quantities and timing, and external factors such as potential
shipping delays or disruptions (e.g., highway construction, truckers’ strikes).
Computer tracking of shipments often helps to maintain knowledge of the
current status of shipments, as well as to provide other up-to-date
information on costs and schedules.

Capiz State University. College of Management

Getting to the Right Location
• GPS navigation continues to be a valuable asset for deliveries, both to
customers and to businesses, guiding drivers or autonomous vehicles to the
right location. And cloud-based software helps companies plan efficient
routes and delivery schedules. The benefits include efficient routes with less
driving time, a reduction in mileage and fuel costs, avoidance of traffic
congestion and road closures, and the ability of companies to track their
vehicles. Some even enable identifying aggressive driver behavior. GPS
navigation is also a valuable asset to service technicians such as plumbers
and electricians, emergency services, food delivery, and car services such as
Uber and Lyft.

Capiz State University. College of Management

Tracking Goods: RFID
•Advances in technology are revolutionizing the
way businesses track goods in their supply
chains. Radio frequency identification (RFID)
is a technology that uses radio waves to identify
objects, such as goods in supply chains. This is
done through an RFID tag that is attached to
an object. The tag has an integrated circuit and
an antenna that project information or other
data to network-connected RFID readers using
radio waves. RFID tags can be attached to
pallets, cases, or individual items.

Capiz State University. College of Management

• RFID eliminates the need for manual counting and bar-code scanning
of goods at receiving docks, in warehouses, and on retail shelves. This
eliminates errors and greatly speeds up the process.
• RFID may enable small, agile businesses to compete with larger, more
bureaucratic businesses that may be slow to adopt this new technology.
Conversely, large businesses may be better able to afford the costs
involved. These include the costs of the tags themselves, as well as the
cost of affixing individual tags, the cost of readers, and the cost of
computer hardware and software to transmit and analyze the data
generated.

Capiz State University. College of Management

Types of RFID
• Active tags have a transmitter and their own power source,
which is typically a battery. The power source is used run its cir-
cuitry and to broadcast a signal to a tag reader.
• Semi-passive tags use a battery to run the circuitry, but draw
power from the reader to communicate with the reader.
• Passive tags do not have a battery. Instead, like semi-passive
tags, they draw power from the reader.

Capiz State University. College of Management

Evaluating Shipping Alternatives
• Evaluation of shipping alternatives is an important component of
supply chain management. Considerations include not only
shipping costs, but also coordination of shipments with other
supply chain activities, flexibility, speed, and environmental issues.
Shipping options can involve trains, trucks, planes, and boats.
Relevant factors include cost, time, availability, materials being
shipped, and sometimes environmental considerations.

Capiz State University. College of Management

The incremental holding cost incurred by using the slower alternative is
computed as
Incremental holding cost = H(d)
365 (15–1)
where
H = Annual earning potential of shipped item
d = Difference (in days) between shipping alternatives

Capiz State University. College of Management

Capiz State University. College of Management
3-PL
Third-party logistics (3-PL) is the term used to describe the
outsourcing of logistics management. According to the website
of the Council of Supply Chain Management Professionals,
the legal definition of a 3PL is “A person who solely receives,
holds, or otherwise transports a
consumer product in the ordinary course of business but who
does not take title to the product.”

Capiz State University. College of Management

15.14 CREATING AN EFFECTIVE
SUPPLY CHAIN
Creating an effective supply chain requires a thorough analysis of all
aspects of the supply chain. Strategic sourcing is a term sometimes used to
describe the process. Strategic sourcing is a systematic process for
analyzing the purchase of products and services to reduce costs by reducing
waste and non-value-added activities, increase profits, reduce risks, and
improve supplier performance.

Capiz State University. College of Management

The SCOR(Supply Chain Operations Reference) model provides
steps that can be used to create an effective supply chain:
1. Plan. Develop a strategy for managing all the resources that go into meeting
expected ustomer demand for a product or service, including a set of metrics to
monitor the supply chain.
2. Source. Select suppliers that will provide the goods and services needed to
create products or support services. Also, develop a system for delivery,
receiving, and verifying shipments or services. Structure payment along with
metrics for monitoring and, if necessary, improving relationships.
3. Make. Design the processes necessary for providing services or producing,
testing, and packaging goods. Monitor quality, service levels or production
output, and worker productivity.

Capiz State University. College of Management

The SCOR(Supply Chain Operations Reference) model provides
steps that can be used to create an effective supply chain:
4. Deliver. Establish systems for coordinating receipt of shipments from
vendors; develop a network of warehouses; select carriers to transport
goods to customers; set up an invoicing system to receive payments;
and devise a communication system for two-way flow of information
among supply chain partners.
5. Manage returns. Create a responsive and flexible network for receiving
defective and excess products from customers.

Capiz State University. College of Management

Three important aspects of this are effective communication, the speed with which
information moves through the supply chain, and having performance metrics.
•Effective communication Effective supply chain communication requires
integrated technology and standardized ways andmeans of communicating among
partners.
• Information velocity. Information velocity is important; the faster information
flows (two-way), the better.
Performance metrics. Performance metrics are necessary to confirm that the
supply chain is functioning as expected, or that there are problems that must be
addressed. A variety of measures can be used, which relate to such things as late
deliveries, inventory turnover, response time, quality issues, and so on. In the
retail sector, the fill rate (the percentage of demand filled from stock on hand) is
often very important.

Capiz State University. College of Management

Capiz State University. College of Management
Learning Objective 8.13 Discuss the issue
involved managing returns.

Managing returns Stevenson, W. J. (2021).

Operation management (14th ed.). Mc Graw- Hill
Education

Capiz State University. College of Management

 MANAGING RETURN
Products are returned to companies or third party handlers for a variety of reasons,
and a variety of conditions. Among them are the following:
Defective products
Recalled products
Obsolete products
Unsold products returned from retailers
Parts replaced in the field
Items for recycling
Waste

Capiz State University. College of Management

MANAGING RETURN
Reverse logistics is the process of typically transporting
returned items. This involves either retrieving item from the
field or moving items from the point of return to a facility
where they will be inspected and sorted and then transporting
them to their final destination.

Capiz State University. College of Management

 MANAGING RETURN
The two key elements of managing return are gatekeeping and
avoidance:
Gatekeeping - oversees the acceptance of returned goods
with the intent of reducing the cost of returns by screening
returns at the point of entry into the system and refusing
to accept goods that should not returned, or goods that
are returned to the wrong destination.

Capiz State University. College of Management

MANAGING RETURN
Avoidance - refers to finding ways to minimize the
number of items returned. It can involved product
design and quality assurance. It may also involve
monitoring forecast during promotional programs to
avoid overestimating demand to minimize returns of
unsold products.

Capiz State University. College of Management

MANAGING RETURN

The term close-loop supply chain is used to describe a

situation where a manufacturer controls both the
forward and reverse logistics.

Capiz State University. College of Management

Learning objective 8.14 Describe some of the challenges
in creating a effective supply chain and some of the trade
off involved
Challenges in creating a effective supply chain and
some of the trade off involved Stevenson, W. J.
(2021). Operation management (14th ed.). Mc Graw-
Hill Education

Capiz State University. College of Management

Challenges in creating a effective supply chain and some of
the trade off involved
Challenges
Barriers to integration of separate organization - Organization
and their functional areas, have traditional had an inward
focus. They set up buffers between themselves and their
suppliers. Changing that attitude can be difficult. The
objective of supply chain management is to be efficient across
the entire supply chain.

Capiz State University. College of Management

Challenges in creating a effective supply chain and some of the
trade off involved
Getting CEO's, Boards of Directors, managers and Employees "Onboard" -
CEO's and directors need to be convinced of the potential payoffs from
supply chain management. And because much of supply chain
management involves a chain in the way business has been practice for an
extended period of time, getting managers and workers to adopt new
attitudes and practices that are consistent with effective supply chain
operations poses a new real challenges."

Capiz State University. College of Management

 Challenges in creating a effective supply chain and some of the
trade off involved
Making the supply chain more efficient:
Large vs. Small lot sizes - Compare the benefits and cost of large lots with the benefits
and risks of small lots.
Saving cost and time by using cross docking - Cross docking is a technique whereby goods
arriving at a warehouse from supplier are unloaded from the suppliers truck and
immediately loaded one or more outbound trucks, thereby avoiding storage at the
warehouse completely.

Capiz State University. College of Management

Challenges in creating a effective supply chain and some of the
trade off involved

Making the supply chain more efficient:

Ship directly to the customer to reduce waiting time - One approach to
reducing the time customers must wait for their orders is to ship directly from
a warehouse to the customer by passing a retail outlet.

Capiz State University. College of Management

Small businesses - May be reluctant to embrace supply chain
management because it can involved specialized, complicated
software, as well as sharing sensitive information with companies.

Variability and Uncertainty - Variations create uncertainty,

thereby causing efficiencies in a supply chain. Variations occurs in
incoming shipments in suppliers, internal operations, deliveries of
products or services to customers and customer demands.

Capiz State University. College of Management

Response time - Important issue in supply chain management long
lead times impair the ability of supply chain to quickly respond to
changing conditions such as changes in a quantity or timing the
demand, changing in product or service design, and quality or
logistics problems.

Capiz State University. College of Management

Summary
Appraisal costs: Costs of activities designed to ensure quality
or uncover defects. (Stevenson, 2021)
Backup Delivery: Alternative transportation options for
moving goods from suppliers to customers, often used to
mitigate disruptions in the primary delivery network.
(Stevenson, 2021)
Backup Suppliers: Alternative suppliers that can be used if the
primary supplier experiences problems or disruptions.
(Stevenson, 2021)
Baldrige Award: Annual award given by the U.S. government
to recognize quality achievements of U.S. companies.
(Stevenson, 2021)
Capiz State University. College of Management
Summary
Benchmarking: Process of measuring performance against the
best in the same or another industry. (Stevenson, 2021)
Brainstorming: Technique for generating a free flow of ideas
in a group of people. (Stevenson, 2021)
Cause-and-effect diagram: A diagram used to search for the
cause(s) of a problem; also. (Stevenson, 2021)
Critical Suppliers: Suppliers that are crucial to the business's
operations, often providing essential components or
materials. (Stevenson, 2021)

Capiz State University. College of Management

Summary
Customs Broker: A licensed professional who assists
businesses with navigating customs regulations, completing
necessary documentation, and handling imports and exports.
(Stevenson, 2021)
Domestic Suppliers: Suppliers located within the same country
as the business. (Stevenson, 2021)
Exporting: Selling goods or services to customers in other
countries. (Stevenson, 2021)
Importing: Buying goods or services from suppliers in other
countries. (Stevenson, 2021)

Capiz State University. College of Management

Summary
Inventory: The goods or materials a business holds for sale or
use in production. (Stevenson, 2021)
Nonconforming Goods: Goods that do not meet the specified
quality standards or requirements. (Stevenson, 2021)
Reliable Suppliers: Suppliers that consistently deliver high-
quality goods or services on time and at a reasonable price.
(Stevenson, 2021)
Risk Management: The process of identifying, assessing, and
mitigating potential risks to a business. (Stevenson, 2021)

Capiz State University. College of Management

Summary
Supplier Management: The process of identifying, selecting,
evaluating, and monitoring suppliers to ensure they meet
quality, reliability, and cost standards. (Stevenson, 2021)
Supplier Performance: The effectiveness of a supplier in
meeting the business's requirements, often measured by
factors like quality, reliability, and flexibility. (Stevenson,
2021)
Supply Chain Interruptions: Disruptions to the flow of goods
and materials within a supply chain, often caused by events
like natural disasters, transportation delays, or supplier
issues. (Stevenson, 2021)
Capiz State University. College of Management
Summary
Supply Chain Problems: Issues that disrupt the flow of goods
and materials within a supply chain, often leading to delays,
shortages, or increased costs. (Stevenson, 2021)
Warning Signs: Indicators that a supplier is experiencing
problems or may not be able to meet its obligations, such as
late deliveries, incomplete orders, or quality issues.
(Stevenson, 2021)

Capiz State University. College of Management

References
Benton, W. C. Purchasing and Supply Chain Management, 3rd ed. New
York: McGraw-Hill, 2013.
Bowersox, Donald J., David J. Closs, and M. Bixby Cooper. Supply
Chain Logistics Management, 5th ed. New York: McGraw-Hill
Education, 2019.
Chopra, Sunil. Supply Chain Management: Strategy, Planning, and
Operation, 7th ed. New York: Pearson, 2018.
Handfield, Robert B., and Ernest L. Nichols Jr. Introduction to Supply
Chain Management, 2nd ed. Upper Saddle River, NJ: Prentice Hall,
2014.
Johnson, P. Fraser, Michiel R. Leenders, and Anna E. Flynn. Purchasing and
Supply Management, 14th ed. New York: McGraw-Hill/Irwin, 2011.

Capiz State University. College of Management

References
Monczka, Robert M., Robert H. Handfield, Larry Guinipero, and
James Patterson. Purchasing and Supply Chain Management, 6th ed.
Stamford, CT: South-Western Cengage Learning, 2016.
Murphy, Paul R. Jr., and A. Michael Knemeyer. Contemporary
Logistics, 12th ed. Pearson, 2017.
RFID Journal.com Simchi-Levi, David, Philip Kaminsky, and Edith
Simchi-Levi. Designing and Managing the Supply Chain: Concepts,
Strategies, and Case Studies, 3rd ed. New York: McGraw-Hill, 2008.
Webster, Scott. Principles and Tools for Supply Chain Management.
New York: McGraw-Hill, 2009

Capiz State University. College of Management