Basic Supply Chain Strategies and Purchasing Techniques

Exchange large volumes of data using Electronic Data Interchange (EDI), share product catalogs exclusively with wholesalers or those "in the trade", collaborate with other companies on joint development efforts, Jointly develop and use training programs with other companies, provide or access services provided by one company to a group of other companies, such as an online banking application managed by one company on behalf of affiliated banks, share news of common interest exclusively with partner companies

The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.

Chopra, S., & Meindl, P. (2012). Supply chain management: Strategy, planning, and operation. Upper Saddle River, NJ: Prentice-Hall.

SUPPLY CHAIN MANAGEMENT: Effective supply chain management is one of the most important operational strategies that allow company to enjoy sustainable competitive advantage. More than the manufacturing expenses the distribution costs are high. If a retail firm has a proper supply chain management it can cut down the cost and have a competitive advantage of providing goods at lower cost. The cross docking concept that was introduced by the Wal-Mart was one of effective concept.

Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.

In the following sections I will propose a supply chain strategy which will align company goals and initiatives increasing efficiency and driving down cost thereby creating a sustainable competitive advantage through the implementation of a synergistic supply chain strategy.

There are several options when it comes to a supply chain strategy including the Keiretsu network, virtual company, a vertical integration, and joint venture. After analyzing all of these programs, it is my opinion that the virtual company supply chain strategy be adopted.

Electronic Data Interchange (EDI) which is a communication method that provides standards for exchanging data via any electronic means. Specifically, to a family of standards and can be defined as the transfer of structured data, agreed message standards, from one computer system to another without human intervention.

E-commerce Explain what is meant by the term ‘E-commerce’. It is the conducting of business communication and transactions over networks and through computers. As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. However EC also includes all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer. Electronic commerce also includes buying and selling over the Web, electronic funds transfer, smart cards, digital cash (e.g.

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

E-Commerce:conduct the business transaction electronically via Internet,including electronic trading market, Internet marketing, online transaction processing, electronic data interchange (EDI) etc.

E-commerce is transactions conducted via electronic means such as the internet, email and SMS. It is considered to be one of the most important aspects of the internet to appear. As a result, people are able to exchange goods and services immediately regardless of their geographic location and time. More and more businesses conduct transactions on line, with some trading purely on-line thus reducing overheads and administrative costs.

Inventory control – how much invetory should we keep on hand, how should we store and distrubute it

4. In a service supply chain, the (explicit) cost of information is higher than in a product

Supply chain management is the process that takes place as materials, information and finances move from supplier to manufacturer to wholesaler to retailer to consumer. These flows must be coordinated and integrated within and among companies. The ultimate goal of an effective supply chain management system is to reduce inventory. A strategy is usually formed to in a way to achieve the goal in the most effective way possible It is important to consider the market in which you are supplying when choosing a supply chain strategy, in this case it is the European market. (Rouse, 2008)