Principles of Supply Chain Management, Second Edition, 2nd Edition

18 Principles of Supply Chain Management

• Outsourcing company may fail to communicate quality requirements to suppliers.

• Suppliers may not have the capability in their processes to maintain a desired level

of quality.

These factors indicate the goal of having an efcient global supply chain with suppliers,

especially those in emerging countries, is far from being achieved. It is difcult to achieve

close quality control when reducing operation costs is the central concern of SCM. All

supply chain participants need to engage in a concerted effort toward continuous quality

improvement as part of the business mission.

Changing Customer Demands

Customers dene the needs in today’s afuent society. In order to compete for a customer’s

attention, ...