This definition implies much about the management of a supply chain, and led to the development
of the conceptual model illustrated in Figure 3. Asupply chain can be pictured as a pipeline, with
Figure 3 illustrating a view of the pipeline from the side, showing directional supply chain flows (products,
services, financial resources, the information associated with these flows, and the informational
flows of demand and forecasts). The traditional business functions of marketing, sales, research and
development, forecasting, production, procurement, logistics, information technology, finance, and
customer service manage and accomplish these flows from the supplier’s suppliers through the
customer’s customers to ultimately provide value and satisfy the customer. Figure 3 also shows the
critical role of customer value and satisfaction to achieve competitive advantage and profitability for
the individual companies in the supply chain, and the supply chain as a whole.
This definition implies much about the management of a supply chain, and led to the developmentof the conceptual model illustrated in Figure 3. Asupply chain can be pictured as a pipeline, withFigure 3 illustrating a view of the pipeline from the side, showing directional supply chain flows (products,services, financial resources, the information associated with these flows, and the informationalflows of demand and forecasts). The traditional business functions of marketing, sales, research anddevelopment, forecasting, production, procurement, logistics, information technology, finance, andcustomer service manage and accomplish these flows from the supplier’s suppliers through thecustomer’s customers to ultimately provide value and satisfy the customer. Figure 3 also shows thecritical role of customer value and satisfaction to achieve competitive advantage and profitability forthe individual companies in the supply chain, and the supply chain as a whole.
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