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Supply Chain Glossary - O

Supply Chain Glossary - O

organizational breakdown structure

In project management, a representation of a project's organization relating work packages to organizational units.

The creation of an organizational structure to support the strategic business plans and goals of an enterprise, e.g., for-profit and not-for-profit companies. Given the mission and business strategy, the organizational structure design provides the framework within which the business operational and management activities will be performed.

The process of building and strengthening core competencies and organizational capabilities that enable the execution of the business strategy and provide a sustainable competitive advantage over time. Organizational development includes staffing the organization, building core competencies and organizational capabilities, and continuous improvement initiatives in response to the changing business environment.

Consists of an external environment (e.g., laws and regulations, technology, economy, competition) and an internal environment (e.g., the domain of products and services to be provided, the processes to be executed, and the organizational structure). See: external environment, internal environment.

A manufacturer that buys and incorporates another supplier's products into its own products. Also, products supplied to the original equipment manufacturer or sold as part of an assembly. For example, an engine may be sold to an OEM for use as that company's power source for its generator units.

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