Abstract

Effective supply chain management (SCM) can provide companies the competitive edge by adding stability and predictability to their supply stream. Manufacturers can identify vendors that provide high quality service and developing close, mutually-beneficial relationships, based on efficiency and dependability rather than simply lowest cost. Internet-based supplier relationship management applications link trading partners and enable real-time information exchange on product specifications, inventory levels, scheduling, and orders pending. A case study of a medical device manufacturer illustrates the value of SCM. Customer complaints about a company's new state-of-the-art electronic stethoscope led to discovery of a manufacturing process flaw. Close work with the part supplier and diligently monitoring process changes contributed to improved quality control. Maintaining direct involvement and interaction with a limited but reliable number of suppliers can lead to a more productive arrangement for both partners.