Quiz 9: Managing Supplier Quality in the Supply Chain


Supply chain: The supply chain is the group of activities that the firm renders and how they cooperate with each other. The following are the methods in which supply value chain helps the firms to manage their supply chain: The value chain breaks down the activities of the business into its component parts to determine and diminish internal competition. The value chain activities are shown in Figure 1. img Figure 1 The supply value chain is depicted in Table 1. Table 1 img These are the core "supplier" associated activities that an organization renders the add value for the consumer. If these supply value chain actions are performed fine, it will result in high customer satisfaction. Thus, an organization benefits from determining its supply value chain by identifying the supplier-based activities that boost customer satisfaction. This method will let the firm to focus on the expenses which are directly associated with the consumer. Hence, the supply value chain is explained.

Hidden factory : Hidden factories refer to a Non-value-chain activity that contains costs. However, it will not influence the customer. As a result, it is not firmly attached to income. A hidden factory contains the bureaucratic behaviors. The value chain activities are shown in Figure 1. img Figure 1 By detecting the hidden factories, it will allow the business to focus on the additional core processes that will increase consumer satisfaction. Thus, the hidden factory concepts are explained.

Hidden factory is a term that includes all the activities that might hamper the efficiency of work in a company. These activities could not be identified easily. Therefore, they are known as hidden factories. Activities associated with hidden factory: Activity: • Group of Boy Scouts or Girl Scouts Core processes: • Adult leader who deals directly with children Functions: Only function performed by the leader includes managing the students and teaching them the techniques required to render some activities Other core processes: • Professional and volunteer committee who offer all the logistical support for the youth organization Hence, the activities associated with hidden factory are explained.

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