The book introduction to operation and supply management explores on various critical issues on operations and supply chain management. On chapter 7, Cecil and Hadfield explore in details the basics and the procedures of supply management.
The chapter provides basic definitions that are applicable to supply management. According to Cecil, supply management includes all the activities that organizations, institutions or even individuals carry out focus on analyzing sourcing opportunities, developing strategies supplier selection and any other service associated with the delivery of goods and service. Other applicable terms include cost of sold goods, which is defined as the cost incurred on purchased goods outside the supplier. The merchandize history shows the amount paid on a particular inventory for a specific time among other definitions (pg.3).
The chapter provides the pillars of supply chain management, which include planning, sourcing, fulfilling, reporting and visibility. Al these pillars are crucial and core functions of a supply chain management department in organization (pg. 4). The key principles that guide supply change management that enhance performance include competition, transparency and openness. The other principle is value of money as well as compliance with the regulatory requirements and controlling the risk management measures. Other key principles include conflicts of interests and accountability (pg.6).
On ethical code of conducts, the chapter highlights on ethical standards that should govern the supply chain management. The chapter expounded on the key pillars on supply chain management and the effects. On the final pillar; reporting, the chapter emphasizes on the importance reporting and the value of record keeping to a supply chain management. All these pillar work together to make the supply management process complete (pg.60).
Handfield, Robert B., and Cecil B. Bozarth. Introduction to Operations and Supply Chain Management. Pearson Higher Ed, 2012.