Operations Management For Dummies, 2nd Edition

Chapter 14

Understanding Supply Chain Basics

IN THIS CHAPTER

Breaking down the supply chain’s structure

Selecting the right supply chain strategy

Understanding causes of and solutions to the bullwhip

Boosting supply chain performance

You may have heard the saying “You’re only as strong as your weakest link.” Nothing is truer for a company’s supply chain — the businesses that provide the materials that you need to do business. Sometimes, the failure of just one supplier can drastically affect your ability to deliver quality goods and services to your customers in a timely manner.

The importance of efficient supply chain management has significantly increased as companies outsource more and more functions that go into their products and services. In the past, companies were traditionally vertically integrated, meaning that they produced a great majority of the components in their products. Today, however, firms now take on a horizontal structure, with many suppliers providing the products and services that once were done in-house. The costs associated with the purchase of goods and ...