Supply Management Case Study

The supply chain process includes the entire process flow which starts from the raw material and ends to the consumer. It is composed of all parties where involved with direct or indirect way in order to fulfil a customer request. Apart from the manufacturer and suppliers the supply chain also includes transporters, warehouses, retailers or even customers themselves. Within a manufacturing company for instance, the supply chain includes all the functions that are involved with receiving and filling customer’s request. These functions contain development of new product, marketing sector, operations, distribution, finance and customer service but without being limited only to these (Chopra & Meindl, 2012).

According to Chopra & Meindl (2012),

(2011), supply management is an inclusive concept. They define it as the strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supply base, utilizing a process orientation in conjunction with cross-functional teams (CFTs) to achieve the organizational mission. The key elements of their definition is depicted in the Figure 3.1.-a

It assesses the sustainability of existing suppliers through its own audits and audits performed by third-party experts. In case of a new supplier, it implements a thorough selection procedure to ensure among others quality and safety of key raw and packaging materials and compliance with customer’s specifications.

Quality, safety, and supply reliability are at the heart of Refresco Gerber supply chain partnerships. This fundamental principle precludes the use of unauthorized suppliers, manufacturing procedures, and activities that may prejudice our standards or the sustainability of our businesses. If they wish to maintain an on-going and long-term business relationship with us, suppliers must comply with applicable legislation and they must be both cost competitive and continuously focused on improvement. Refresco Gerber representatives visit and evaluate key suppliers on a regular