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SUPPLY CHAIN MANAGEMENT:
IMPLICATIONS FOR SMALL AND RURAL
SUPPLIERS AND MANUFACTURERS

Christy Geiger
Joel Honeyman
Frank Dooley

Upper Great Plains Transportation Institute
North Dakota State University
Fargo, ND 58105

March 1997

Disclaimer
The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the information presented herein. This document is disseminated under the sponsorship of the Department of Transportation, University Transportation Centers Program, in the interest of information exchange. The U.S. Government assumes no liability for the contents or use thereof.

TABLE OF CONTENTS

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . …show more content…

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APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

EXECUTIVE SUMMARY
Supply chain management is a major concern in many industries as companies realize the importance of creating an integrated relationship with their suppliers and customers. Managing the supply chain has become a way of improving competitiveness by reducing uncertainty and improving service. One aspect of successfully managing the supply chain requires that a company understand their logistical strategies and practices.
Personal interviews with logistics managers employed by firms from the Twin Cities Round Table suggest the following issues are important to supply chain management.
C

Firms believe supply chain management is a fundamental change in industry.

C

Six characteristics define current supply chain management philosophy.
1. Shared Information
2. Organizational Relationships
3. Inventory Management
4. Total Pipeline Coordination
5. Firm Flexibility
6. Costing Issues

C

There are three major reasons for establishing supply chains.
1. To reduce inventory investment in the chain
2. To increase customer service
3. To help build a competitive advantage for the channel

C

Information is crucial and drives the entire supply chain system.

C

Third parties are becoming popular and will continue to be important for having a cost

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