Supply chain management
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Supply chain management

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    Supply chain management Supply chain management Document Transcript

    • 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:
      • The customer
      • Dell’s website
      • Dell assembly plant
      • Dell’s suppliers
      • Their suppliers
      • 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).