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Hello…
I hope that you are wellI have 3 qestions:
1-Is the raw material purchase ordering system part of inbound logistics or procurement In Porter’s value chain??
It is part of inbound logistics In june 2012-Q4a but it is part of procurement in june 2012-Q4b
2-is the finished goods ordering process part of outbound logistics???
3-in December 2007-Q3a it is said that issue of branding should be considered as a part of upstream supply chain.(but in my opinion brand as part of marketing should be part of downstream supply chain).which one is correct?if it is part of upstream supply chain,would you explain me the reasons??
Thanks in advance
Q1 Procurement is finding suppliers, negotiating prices and placing orders. Inbound logistics relates to the physical movement of raw materials. I don’t see in Q4(b) that purchasing has jumped to inbound logistics. The answer states:
“The upstream activities concern selecting suppliers (procurement), placing orders (procurement) and storing raw material inventory (inbound logistics).”
Q2 I think that where order processing takes place varies. OUtbound logistics is generally the physical movement of goods. Order processing coudl be part of infrastructure (accountins) or part of sales and marketing if on0line orders over the internet were accepted.
Q3 Brand here is upstream because Perfect Shopper is selling branded goods ie other suppliers’ brands, but doesn’t have much brand recognition of its own. The answer suggests that the company could offer own-branded goods instead or as well to develop its own brand.
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