Supply Chain Management Essay
Introduction
To introduce, I will give a definition of what supply chain management consists of. Supply chain management is the stages involved in the flow and control of materials from the suppliers to the customer. It involves trust and commitment between the suppliers as they enter long term relationships. Strategic decision making is also important to consider for an effective SCM system, to add value and gain competitive advantage. (Sunil Chopra, 2001).
The objective of a supply chain is to maximise overall value generated. This is done by assessing what the final product delivered to the customer is worth and the extent that the supply chain goes to fulfil a customer’s request. (Sunil Chopra, 2001).
For this assignment, we are asked
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They are a leader in civil aerospace. Their market share grew due to a balanced portfolio of its products. A globally diverse supply base supports Rolls Royce. The evolution has created interdependencies so the supply chain can’t be considered commodities. They support many engines produced which has provided complex networking scenarios where suppliers have many interfaces within the company. The supply base is measured on quality, cost, delivery and rate of responsiveness. Price reductions are a requirement of the suppliers. Global purchasing has led to a reputation of achieving price reductions for savings within the …show more content…
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