Supply Chain Management Stands for rational transport of goods and use of services to the final user.
An effective supply chain is acheived by these following:
1-Trust-these is trust, confidence, and similar goals between the trading partners.
2-Information velocity (the speed at which information is communicated in a supply chain)-the faster, the better.
3-Supply chain visibility (a major trading partner can connect to its supply chain to access data in real time)- data sharing
4-Event management ( the ability to detect and respond to unplanned events) capacity-monitoring. Notifying, simulating, measuring.
5-Performance metrics-to confirm that supply chain is functionning as expected and the problems are being addrssed. Fill rate (the percentage of demand filled from stock on hand).
Strategic sourcing-analyzing the procurement process to lower costs by reducing waste and non-added activities, increase profits, reduce risks and improve supply performance.

Practice Questions
1- Strategic sourcing analyzes the procurement process to:
a) lower costs
b) Reduce value-added activities
c) Reduce waste
d) All of the above
e) A and C
2) Strategic sourcing differs from more traditional sourcing in that:
a) It emphazizes purchase price rather than total costs.
b) It seeks to consolidate purchasing power to achieve lower prices.
c) Relies on fewer supplies and collaborative relationships
d) All of the above
e) B and C only
3) Which of the following is Not one of the challenges of supply chain managements
a) Return on assets
b) Cost
c) Average value
d)Cash flow
e) Profits
4)- Which of the following is Not one of the challeges of supply chain management?
a) Barriers to integration of separate organization
b) Getting CEO's; board of directors, managers, and employees on board
c) Dealing with trade-offs
d) Other competitors
e) Variability and uncertainty
5)- Delayed differentiation is one of the methods in what trade-offs?
a) Lot size-inventory trade-off
b) Product variety-inventory trade-off

c) Lead time-transportation cost trade-off
d) Cost-Customer service trade-off
e) Inventory-transportation cost trade-off

Mamadou Sacko