REGAL MARINE:
SUPPLY CHAIN MANAGEMENT
By Rashid Salameh
What organizational function has the
opportunity to most directly affect net
income?
Accounting
B.
Marketing
Human Resources
D.
Purchasing
A.
C.
Why Purchasing?
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It accounts for 50% of the sales dollars with
purchasing on materials needed to make products.
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Reduces cost.
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Increases contribution margin.
Supply Chain Management
“Careful management of up stream activities that
percure materials and transform products in the
factory and delivers those products down stream
through a distribution system.”
In order to have an effective job, you must have a
operation strategy.
Operation Strategy?
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The Operating Strategy aims to close the tactical gap between business
strategy and implementation. It translates the strategic goals into clearly
defined implementation targets and aligns the execution process to the
value proposition. This acts the "bridge" to make a concept a reality.
What can be done:
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Identify required decisions and related issues for business processes (i.e., key
business processes, management approaches).
Provide innovative ideas for operating issues and to create new value
opportunities.
Define business process alternatives based on operational analysis.
Define business process direction based on the overall vision (i.e., key decisions
and guiding principles for key business processes and management approaches).
Identify business process order-of-magnitude costs and benefits.
Define an approach to close business process gaps and to realize business
value.
Company’s Success
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1. Cost Control:
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2. Partnering:
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Helps maintain low inventory levels by ordering outside the
company.
3. Quality.
4. A.B.A (American Boat Assoc.):
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Raw material inventory.
Allows them to buy higher volumes at better prices.
5. Potential dealers:
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Measures merchant share data.
Location.
C.S.I. Index
Any Questions?