Supply Chain Strategy Essay Example for Free

Supply Chain system EssayWhat recent changes have caused total chain management to gain importance? 2. With so much productive capacity and room for expansion in the United States, why would a guild ground in the United States choose to purchase items from foreign firm? Discuss the pros and cons. The use of foreign firms arsehole provide a U. S. firm more alternatives in selecting a supplier.The pros are more choices, potentially cut back costs in the areas of materials, transportation, production, and distribution, and potentially moving closer to a foreign market. The cons are the distance is mostly increased, communications problems are increased due to distance, culture, and technology. There may be problems with customs, government regulations, political stability, and so forth 3. Describe the differences between functional and innovative products. Functional products are staples that people buy in a wide range of retail outlets.Typically, they do non change much o ver time, have scummy profit margins, stable predictable demand and long heart cycles. Innovative products, on the other hand, pull up stakes customers additional reasons to buy. Fashionable clothes and personal computers are examples of innovative products. Innovative products have short life cycles, high profit margins, and volatile demand. 4. What are characteristics of efficient, responsive, risk-hedging and agile supply chains? Can a supply chain be both efficient and responsive? Risk-hedging and Agile? Why or Why not?As a supplier, which factors would you consider about a buyer (your potential customer) to be important in setting up a long-term relationship? The financial stability and credit worthiness of the company is of primary importance. The reputation of the company visavis their supplier is also very important. For example, is this a company that is fair with its suppliers and honors its payables in a timely fashion? Is the technological match between supplier and customer sufficient? go forth delivery schedules and quantities be stable, facilitating smooth operations?For the value density example in Exhibit 10. 9, what would the arrange be if a competing firm offers you a similar service for 10 percent less than federal official Expresss rates? 7. What are the advantages of using the postponement strategy? Process postponement delays the surgical operation step that differentiate the product to as late in the supply chain as possible. The advantages of this undertake are that lower levels of inventory, and fewer models are needed to match customer requirements. This results in higher levels of customer satisfaction at a lower cost.