Case Study Supply Chain Management - 1755 Words

1.Introduction: Supply chain Consists of all parties involved involved directly or indirectly, in order to satisfy customer needs. Supply chain includes manufacturer, supplier, transporter ,Warehouses, retailers and customer. Supply chain management is applicable to both manufacturing and service industries. To achieve Customer satisfaction loyalty ,success for individual firms depends on how well the supply chain functions as a whole. The sharing knowledge of new products and technologies with the suppliers it creates the successful product. One of the key element for achieving supply chain effectiveness is establishing and nurturing trust across the organizational boundaries especially with suppliers(Hanfield Bechtel, 2001)†¦show more content†¦Each one will have an impact on other , it includes both tangible and intangible criteria. Supplier selection and evaluations are divided in to two types Single sourcing and multiple sourcing (Nazeri, Meftahi shaharoun , 2011) 2.1.1Single Sourcing : Single Sourcing is done for basic parts which all suppliers can supply .there won t be stringent demand in terms of quality, delivery demand. The buyer has the final authority to decide the source. 2.1.2 Multiple sourcing Multiple sourcing is done for the parts which purely depends upon supplier Capacity, quality, deliver and technical capability .Single supplier cannot satisfy buyers total requirement, other part of demand will be taken by the other supplier in order to compensate. 2.2 Supplier Evaluation Models: There supplier evaluation process depends on two factore. They are as follows ïÆ'Ëœ Process based evaluations ïÆ'Ëœ Performance based evaluations Process based evaluation : Process based evaluation is based on the suppliers production and service process. Evaluations are based on the objective measures of performance. Buyer will assess the level of capability by conducting audit at the supplier site. Performance based evaluation : While taking the supplier performance based evaluation system, it can be classified in to three methods. They are as follows ïÆ'Ëœ The Categorical method ïÆ'Ëœ The cost ratio method ïÆ'Ëœ The linear averaging method Categorical Method: Suppliers