Re: 2013 ZA Q1

[William Toh]

Your framework is ok, other than the fact that you are a bit confused between contracting and control costs.

You can approach the question by discussing the various aspects of supply chain management: procurement, operations, planning.

Since the question asks for u to use TDM, focus on:

Procurement - impact on search and contracting costs. Eg. Alibaba.com, Ariba.com

Operations - impact on control costs by reducing demand and supply uncertainty Eg. Walmart or Baxter Healthcare VMI.

On Sun, Mar 18, 2018 at 7:22 PM, KEK FONG YEE (GUO FANGYU) <fygfk...@mymail.sim.edu.sg> wrote:

Hi sir 

I would like to ask about how to answer the following question: drawing upon the TCM, analyse the impact of SUpply chain systems on the value chain. 

My framework of my answer for the question is :

1)describe the problems of supply chains such as high demand and supply uncertainty, causing supply chain costs

2)how does SCM decrease the types of transaction costs in the supply chains. Such as reducing control costs (VMI), reduce search and control cost(Alibaba.com) 

The commentaries only mentions of how ICT impacts the TRansaction costs. So I’m not sure if my answer is correct. 

If I’m wrong, may I ask how to answer this question? 

Thankyou. 

Cheers

Fong Yee