...1. What are the two primary approaches for evaluating suppliers? How do they differ? There are two primary approaches for evaluation suppliers. One is processed based. Process-based evaluations are useful in assessing how an intervention is being implemented or whether it is producing the necessary measurements. Process-based evaluations are used to understand how program works and delivers its result. It is assessment of supplier’s service and production process. It can get deeper knowledge of supplier audits. Suppler audits can involve assessment of supplier’s structure (management, people, quality, innovation), resources (technology, processes), health (financials, risk), and responsibility (social, environmental). Process-based evaluations are intended to answer some questions. Like what is required to deliver the program in term of resources, products and services? ; How are individuals implementing the intervention trained? ; What are considered the program’s strengths and weaknesses? A performance- based evaluation is focused on the supplier’s actual performance on a variety of criteria, such as cost and quality. Company evaluated supplier selectin and performance based on the weight of evaluation criteria. Company should know which criteria is most important for own company and which criteria is not matter for own company. Many company use supplier scorecard to report performance information to their supplier. A process-based approach is more know company detail...
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...Ch3 1. What are the key components of the Strategic Profit Model? How can it be used to examine the effect of logistics decisions? The strategic profit model provides the framework for conducting return on assets (ROA) analysis by incorporating revenues and expenses to generate net profit margin, as well as an inclusion of assets to measure asset turnover. The strategic profit model employs two key components: net profit margin and asset turnover. Net profit margin is net profit divided by sales, and looking at net profit and sales as reported on the income statement suggests multiple ways in which net profit margin can be influenced by managerial decision. The logistics managers should consider sale, costs of goods sold, and total expenses. Net profit Margin Higher profit margins result in higher return on equity. Asset Turnover is computed by dividing total sales by total assets and provides information of the efficiency capital employed to support the business. If asset turnover decrease, the return on equity decreases. In addition, logistics decisions can influence the speed at which invoices are paid, as reflected in accounts receivable on the balance sheet. 2. How does logistics strategy connect to overall corporate strategy? Is it a one-way or two-way connection? It’s a two-way connection. The logistics strategy refers to long-term, overall planning and strategy for the pursuit of sustainable development of the logistics and according to logistics development...
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