Basic Supply Chain Strategies and Purchasing Techniques

what are the basic supply chain strategies? Explain each strategy, providing relevant examples. A supply chain strategy is frequently miss-understood with supply chain management, where supply chain actions are controlled to decrease costs, but with supply chain strategy it defines how the supply chain should function in order to compete. Supply chain strategy is an iterative method that evaluates the cost benefit trade-offs of prepared components. A well accomplished supply chain strategy results in value creation for the business. The basic supply chain strategies are many suppliers, few suppliers, vertical integration, keiretsu network, and virtual company. The many suppliers strategy has many sources per item, it has†¦show more content†¦For example buying or ordering something you want that you cannot find it in local stores off the internet. Funds transfer goes with electronic ordering because it is when money is taken from your account (with your consent) and placed into someone else’s account and vice versa you may be receiving money or transferring money to someone else’s bank account. For example you purchase an item of clothing off the internet and in order for the company who has the item of clothing to send it to you, you have to pay for the item first so you wound then proceed to means of payment where you will pay the amount asked for the item with shipping fees if any. Then the money needed for this item will be transferred from your account to the sellers account. PayPal is a company that most internet websites use. Both electronic orders and funds transters Reduces cost by reducing paperwork; also increases the speed of ordering. electronic data interchange Is the controlled transmission of data between organizations by electronic means. It is used by companies to exchange information and to transfer electronic documents and files or business data from one computer system to another computer system, for example from one trading partner to another trading partner without human involvement. EDI has replaced the fax machine and mailing list when it comes to information sharing. Using EDI,Show MoreRelatedHistory Of Green Supply Chain Management1324 Words   |  6 PagesEnvironmentally sustainable (Green) supply chain management has gained attention within the area of industry, because the environmental issue is one of the serious concern for governments. Green supply chain management is one of the key approach for Chinese manufacturing industry to achieve their market share objectives and to make maximum profit for the companies(van Hock and Erasmus, 2000). 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In addition to day to day oversight, the director must calculate an operating strategy that steers the company towards its long term objectives, taking appropriate corrective Read MoreRiordan Manufacturing Supply Chain Design1165 Words   |  5 PagesRiordan Manufacturing Supply Chain Design Shante Moore University of Phoenix/OPS 571 â€Æ' Introduction Riordan Manufacturing is a global plastics manufacturer and industry leader in the field of plastic injection molding with locations in Georgia, Michigan, California, and their most current expansion in 2000 to Hangzhou, China. The plant located in China manufactures fans using a make-to-stock operation that uses a forecasting method to determine future demand. A review of their strategic capacity