Operational Execution of Supply Chain Strategy

In Operational Execution of Supply Chain Strategy, you will learn about the key differences in procurement and purchasing including current functions and trends as well as measurements for measuring performance. You’ll review the objectives, data requirements, and scheduling techniques of production activity control. You’ll also take a deep dive into how advanced planning and scheduling positively impacts the supply chain.

The strategic supply chain is fueled by raw materials, components, and equipment that collectively facilitate the process of manufacturing finished goods that need to be in the right place at the right time. To do this, there are two main functions called procurement and purchasing that buy raw materials and components. Although these two roles are similar in nature, they are distinct in their purposes for the company. Purchasing involves daily transactional buying activities guided by provisions set forth by procurement. Procurement is focused on a strategic, long-term plan that sets the parameters for which purchasing functions in the business. Once supplies arrive at the manufacturing plant, they are ready to be staged for production. At this point, the production activity control system takes the two plans outlining what is produced and what materials are needed to produce finished goods and turns that information into controlled actions. Some companies use advanced planning and scheduling to develop optimal production schedules for highly efficient runs.