Table of Contents

• Introduction Page 1

• The Great Seven

▪ Principle 1 Grouping Page 2

▪ Principle 2 Customization Pages 2 - 3

▪ Principle 3 Listening Page 3

▪ Principle 4 Differentiate Page 4

▪ Principle 5 Managing Pages 4 - 5

▪ Principle 6 Development Page 5

▪ Principle 7 Performance Pages 5 - 6

• Recommendation

▪ The Right Attitude Pages 6 - 7

▪ Adapt to Changes Page 7

• Conclusion Page 7

• References Pages 8 - 9

Introduction

In this assignment, we are to critic an article by Anderson D.L, Britt F.F and Favre D.J on their seven principles of supply chain management. To start off we must first understand what does Supply Chain Management (SCM) means, SCM simply means the managing of a product or service flow during its life cycle M. Rouse, (2010). The average understanding of a product or service flow is usually from the provider to the direct customers. However, there is more to the flow than we know. For example there is the “backward flow” from your first tier supplier to your second tier supplier and so on, also the flow usually does not end at your direct customers or in this case first tier customer, in some industry your first tier customers may be suppliers of product and services to your second tier customers. For example, your first tier customer could be a distributor to retailers, the second tier customers and in turn they sell to end users such as you and me who are the third tier customer Achilles (2013) using Apple as an example in Figure 1 as an estimate to explain such a supply chain map for mobile phones.

Figure 1

Of course there are also many other factors in the SCM, another example is quality, quality