Supply Chain Management Theory
Riordan manufacturing is not an island; it requires many inputs to achieve the subsequent output of end product. Riordan’s Hangzhou, China facility is no different. This brief is meant to give you, as a new hire, an abbreviated understanding of how we construct supply chain activities to give us an operational advantage in providing a quality end product to our end customers at the lowest cost. Supply chain management is composed of a network of interconnected businesses that work together to ensure that customer deliveries are met. Each of these businesses that work within the supply chain network are contracted to provide either goods or services that allow Riordan to deliver on these aforementioned commitments. Supply Chain Management spans a number of deliverables, such as raw materials, work in process inventory, finished components for assembly etcetera; these deliverables are all harnessed in concert to provide a finished product. Each of these businesses must be managed proactively to deliver on time, at the right cost and the highest quality. There are standards that Riordan has implemented to ensure that our supply chain meet the goals of on-time delivery. Through these standards that encompass design, planning, execution, control and monitoring, Riordan hopes to ensure we can deliver a consistent product. These standards allow Riordan to leverage worldwide suppliers and logistics, to synchronize supply with actual demand and to measure delivery against this demand.
Riordan works hard to ensure that the suppliers that have been selected are done so competitively. When Riordan chooses a supplier, there are various factors that are considered above and beyond piece part price. The supplier must endure a barrage of audits, including quality, parametric modeling as well as load and capacity planning models. The use of these tools allows Riordan to ensure that the supplier is capable of...
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