Housekeeping Inventories Control

Supply Chain Management



1Supply chain management refers to the facilities, functions, and activities involved in producing and delivering a product or service, from suppliers to customers.



2It focuses on "estimating the demand for a product or service, planning and managing supply and demand; acquiring materials; producing and scheduling the product or service; warehousing, inventory control, and distribution; and delivery and customer service."



3A variation involves reducing the number of vendors an organization uses.



lManagers are using three or fewer vendors and working closely with them to improve efficiency and quality.

lFirms now routinely send inspection teams to rate suppliers' operations.

lAs collaborators and partners, rather than adversaries, firms are finding that they can achieve better quality of inputs, fewer defects, and lower costs.