Mohit Malviya Supply Chain Management Prof. Manoj Bhatia<br />
Why management of the supply chain is important for organizations? Write a short note.
It is important because from this companies can deliver right product to right person at right time and at right place without any hassle. Today, companies are more focused about service than the product and that is the reason there is a need for effective and efficient management of the supply chain. It reduces the total cost during the trade and maximizes the value of the product. It provides healthy competition in the business because of globalization. It helps in developing core competency. It helps in choosing the right channel members.
Example: Toyota motors, Japan has gained competitive edge
Give one example of a company that has excelled in managing its supply chain. What makes its supply chain work? Has this given a competitive advantage to the company?
Dell has excelled in managing its supply chain. Dell has good supply chain base which includes:
Dell assembly plant
New product development strategy: DELL
Designing products that are easily customizable, i.e. designing common platforms across several products.
Supply chain responsiveness: DELL
Respond to wide range of quantities demanded
Try to meet short lead times
Handle a large variety of products
Build high innovative products
Handle supply uncertainity
Drivers of supply chain: DELL
Facilities: low facility costs
Inventory: low inventory costs
Transportation: high transportations costs
Information: high information costs
All this has given competitive advantage to the company as Dell is one of the most successful organizations in the world because of its supply chain management. They are more focused on service rather than the product. They believe in delivering high quality with low price and with extraordinary service (supply chain management).