1946 Chrysler Owners Manual by Chrysler

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So each organization sometimes has to set aside its pure self-interest to achieve better performance for the chain as a whole. This is a fundamental principle of logistics, that trading partners do not work in isolation but they genuinely cooperate to improve overall results. In reality, this also provides one of the key challenges of supply chain management, as most organizations still focus on their own performance with little regard for other members of their chains. Customer service Considering the primary role of logistics within an organization, its aim is to help the organization succeed.

Customers will only pay a certain amount for a product, and this limits the resources that can be used to deliver it. So a realistic aim for logistics is to help achieve customer satisfaction, while using available resources efficiently and giving acceptable costs. This is the view implied by Christopher (1998) in his definition of SCM as ‘the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole’.

One that gets a product directly from the organization is a first-tier customer; one that gets a product from a first-tier customer is a second-tier customer, and so on to final customers. Then a manufacturer might see sub-assembly constructors as firsttier suppliers, component makers as second-tier suppliers, materials providers as third-tier suppliers, and so on; and it might see wholesalers as first-tier customers, retailers as second-tier customers, and end-users as thirdtier customers. There are a huge number of different configurations for supply chains.

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