Final answer:
Sourcing and logistics managers make key decisions about the goods and services required, whether to expand or reduce production, set prices, manage workforce needs, and address labor rights. They also consider the use of advanced technology and company policies to ensure the efficiency and sustainability of supply chains.
Step-by-step explanation:
Key Decisions Made by Sourcing and Logistics Managers
Sourcing and logistics managers play a critical role in shaping the operations and competitiveness of a firm. One of their key decisions involves determining the goods and services required to meet consumer needs, reflecting on what will be produced, how, and for whom. They also decide whether to expand or reduce production, taking into account various factors including labor costs, the proximity of suppliers, market demands, transportation, and the competence of local governments. Setting the right price points is essential to remain competitive and profitable, which in turn can affect decisions on opening or closing factories or sales facilities.
Moreover, sourcing and logistics managers are responsible for ensuring the workforce is aligned with production needs, which often involves decisions to hire or lay off workers. The introduction of new products or cessation of existing ones is another area under their purview. Through international and national labor policies, they address labor rights to maintain a sustainable supply chain, especially during national emergencies. Recognizing the influence of technology on supply chain efficiency, they may advocate for technology sharing, especially with developing countries, to enhance product distribution and market responsiveness.
From a broader perspective, these managers must navigate the allocation of goods and services in the market, guided by advanced technology and science to improve productivity and distribution within the economy. Retail giants like Amazon exemplify successful sourcing and logistics strategies by optimizing their production model and cost structure to offer competitive pricing, even after including shipping costs.