Question 203 - CSCP discussion

Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to value stream analysis because:

Holistic View: Value stream analysis provides a comprehensive view of the entire supply chain, from raw material sourcing to final product delivery. This holistic approach helps identify inefficiencies and areas for improvement across the supply chain.

Process Improvement: It focuses on analyzing and improving the flow of materials and information, ensuring that every step adds value and aligns with customer needs.

Collaboration: Value stream analysis encourages greater collaboration between different functions and partners in the supply chain, leading to more integrated and efficient processes.

Cost Reduction and Efficiency: By identifying and eliminating non-value-added activities, value stream analysis helps reduce costs and improve efficiency, aligning with the broader objectives of supply chain management.

Product pricing (Option A) is more related to marketing strategies. Centralized decision-making (Option C) can be part of supply chain strategies but does not specifically relate to value stream techniques. Sourcing multiple suppliers (Option D) is a tactic that may be used within supply chain management but does not encompass the comprehensive improvement focus of value stream analysis.

'Learning to See: Value Stream Mapping to Create Value and Eliminate Muda' by Mike Rother and John Shook.

'Creating Continuous Flow: An Action Guide for Managers, Engineers & Production Associates' by Mike Rother and Rick Harris.