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World Class Procurement Definitions A forum for defining key terms / definitions as it applies to World Class Procurement and Supply Chain Management

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Old 06-19-2007, 08:05 AM
Supply Chain Guru
 
Join Date: Oct 2005
Australia
Posts: 42
Default Supply Chain Management Goals

There are two main goals for Supply Chain management, which are both quite straightforward.

• The first goal is to ensure maximum and permanent customer satisfaction, first in terms of delivery reliability, which means keeping the promises you make to customers, and second in terms of delivery responsiveness and flexibility, which means being able to respond as fast as possible to customer requests and at the same time to provide the shortest possible delivery dates, while at the same time being also able to accept changes requested by the customer on delivery date, product features, etc.

• The second goal is to achieve this high customer service at the lowest possible cost, which implies both maximizing inventory turns and minimizing purchasing, production and distribution costs.
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