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Teaching Tip: Why Supply Chain Management Matters

October 25, 2014

When we discuss supply chains in Figure 11.1 in Chapter 11, we take note of not only first tier suppliers, but 2nd and 3rd as well. Sometimes manufacturers do not pay as close attention as needed down the line, but recent disruptions from tsunamis (Japan) and floods (Thailand) have raised awareness greatly. Ford discovered this all too well when its 2nd tier paint supplier (which made the pigment Xirallic used to produce the metallic look in red and black F-150s, Lincolns, Tauruses, and Explorers) was destroyed in the Japanese earthquake.

That is why this graphic is a useful teaching tool. It was developed by Prof. Andreas Wieland at the Copenhagen Business School (Supply Chain Management Research, Oct. 12, 2014).why-scm-matters

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