SUPPLY CHAIN MANAGEMENT

Supply Chain Management

[Student's name]

[Course name and number]

[Instructor's name]

[Date submitted]

Table of Contents

Introduction1

Thesis statement2

Procurement2

Contract Management3

Importance to the business world3

RFP Selection Tools4

Improvement in the Assessment of Proposals5

Procurement planning5

Strategies Necessary for Project Success6

Organizing6

Hiring6

Coordinating7

Monitoring7

Selection of Vendors7

Evaluation of the Contract8

Legal Aspects of Procurement in a Project8

Illegality and Error9

Comparisons of the Critical Elements of a Contract10

Lowest price proposal method10

Technical Proposal Method10

Overall Value for Money Method10

Relationships between the Client and Supplier11

Completion and Payment Terms11

Examples11

Conclusion12

References13

Supply Chain Management

Introduction

Supply chain management enables organizations to get the rights goods as well as services according to their requirements when they are needed. It also ensures that the company gets the right quantity of goods or services and at the right cost. Managing this process in an efficient manner can be described when the supply chain process controls the relationships with the suppliers as well as with the customers. Besides this, it also includes controlling of the inventory and forecasting the future demand. Moreover, it is also essential to get feedback to make improvements in the future. The components of supply chain are mentioned below.

1.Location - some of the important factors are to have know-how about the production facilities and the stocking points. Moreover, it is also essential to know the sourcing points and the flow of goods.

2.Production - It is the duty of the organization to decide the products it should create. They should also determine the service suppliers that should be contacted, and specific supply distribution centers should be selected. One last part of production is also to decide how the products will reach the final customer. All these decisions are important because they have a lot of impact on the revenue, expenses and customer services.

3.Inventory - it is important for every company to have a certain amount of inventory in the warehouse. This is important because there can be a situation when customer demand can increase or supplier is unable to supply immediately. Therefore, safety stocks should be maintained by the companies (Rowe, 2007).

4.Transportation - The way in which the materials and the parts are transported from the supplier to the warehouse and from the factory to the customers involves transportation planning. The company must decide the mode of transport that must be used to ship a product.

When an organization's supply chain capabilities are directly aligned with its way to play, the company enjoys a coherence premium—that is, superior performance and an extremely strong market position. Unfortunately, this coherence is all too rare. More often, companies' strategic thrusts are divorced from their operational capabilities; as a result, supply chain organizations (and their executives) must contend with conflicting demands that either cannot be reconciled or substantially drive up costs. In this Perspective, we examine six company archetypes—Innovator, Premium Player, Customizer, Differentiated Green, Aggregator, and Value Player—and the supply chain capabilities needed to support each way to play. These capabilities span the supply chain life cycle from up-front design to ongoing continuous improvement (Simchi-Levi, et.al, 2007).

Thesis statement

“Ways in which project management relates to purchasing and supply management and its processes”.

Procurement

The process in ...