Chapter 32

Supply Chain Concept

Supply Chain Concept: Purpose

There are several reasons why an organization will consider setting up a formal supply chain. First, they may wish to enhance the consumers’ experience and perceived value of the brand or product through delivery of a product that reliably meets their expectations. Another reason could be that the organization wants to achieve operating efficiencies that will reduce operating costs. Alternatively, the aim could be to ensure supply of raw materials or components that are difficult to source.

Whatever the reason, the sharing of information and cooperation between supply chain partners should reduce their risks. It should also contribute to quality control of production of the final ...

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