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Supply management’s contribution may be measured along the following dimensions: strategic, operational, direct, and indirect.

Question

Supply Management's Contribution

Supply management’s contribution may be measured along the following dimensions:

  • Strategic
  • Operational
  • Direct
  • Indirect
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Solution

The contribution of supply management can be measured in four main dimensions:

  1. Strategic: This dimension refers to the long-term plans and policies set by the supply management team. It includes decisions about supplier selection, risk management, and strategic partnerships. The effectiveness of these strategies can be measured by their impact on the company's overall goals and objectives.

  2. Operational: This dimension focuses on the day-to-day operations of the supply chain. It includes activities such as inventory management, order processing, and delivery scheduling. The efficiency of these operations can be measured by metrics such as order accuracy, delivery speed, and inventory turnover.

  3. Direct: This dimension refers to the direct costs associated with the procurement of goods and services. It includes costs such as purchase price, transportation costs, and import duties. The contribution of supply management in this dimension can be measured by cost savings achieved through negotiation, supplier management, and cost-effective logistics.

  4. Indirect: This dimension refers to the indirect costs or benefits associated with supply management. It includes factors such as supplier reliability, quality of goods, and impact on customer satisfaction. The contribution of supply management in this dimension can be measured by improvements in these areas.

In summary, the contribution of supply management can be measured in terms of strategic impact, operational efficiency, direct cost savings, and indirect benefits.

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