In the world of big business, only one thing is constant: change. What was considered cutting-edge technology 10, 15, or 20 years ago is now considered archaically obsolete. In fact, in the year 2010, what was considered cutting-edge 6 months ago might now be obsolete. Businesses need to be able to morph their practices and procedures to adapt to an ever changing landscape that customer sales demand. The certain characteristics of most of these adaptations are unique to the business’ unique industry; there are certain constants, however, that may be adapted to any business, small or large. Supply chain management is one of those sectors of business that is constantly evolving. Staying on the cutting edge of supply chain management, specifically by implementing any number of the vast information technologies available, is one way to ensure longevity and financial vitality for big businesses. Three companies that exemplify this adaptability are Dell computers, Panera Bread, and Express clothing company. Throughout this course, we have learned valuable skills that may be adapted to many sectors of the manufacturing and service industries. Armed with this wealth of knowledge, I intend to tackle the weighty subject of "Suppliers Chain Management focusing on IT application and its implications.” My main objectives shall be to: 1. Define the Supply Chain System; 2. Introduce the History of Supply Chain Management; 3. Discuss Recent Advancements in Information Technology that have Affected the Manufacturing and Service Industries; and 4. Discuss Supply Chains and Information Technology in Relation to Three Giants of their Industries: a. Dell b. Panera Bread c. Express

1. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
"Suppliers Chain Management Focusing on IT
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Application and its Implications"
Abdullah Alabdullah
Lawrence Technological University
OPM3113 – Operations Management
Professor. Kioumars Paryani

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Abdullah Alabdullah
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Table of Contents
Title Page
Executive Summary……………………………………………………………………………….3
The Supply Chain Management Defined…………………………………………………………4
Historical Development of Supply Chain Management and Information Technology…………...5
Three Companies Examples:
Dell………………………………………………………………………………………...5
Panera Bread………………………………………………………………………………7
Express…………………………………………………………………………………….7
The Future of Supply Chain Management and Information Technology…………………………8
References…………………………………………………………………………………………9

3. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
Executive Summary: The Supply Chain Management System in the Technological Age
In the world of big business, only one thing is constant: change. What was considered
cutting-edge technology 10, 15, or 20 years ago is now considered archaically obsolete. In fact,
in the year 2010, what was considered cutting-edge 6 months ago might now be obsolete.
Businesses need to be able to morph their practices and procedures to adapt to an ever changing
landscape that customer sales demand. The certain characteristics of most of these adaptations
are unique to the business’ unique industry; there are certain constants, however, that may be
adapted to any business, small or large. Supply chain management is one of those sectors of
business that is constantly evolving. Staying on the cutting edge of supply chain management,
specifically by implementing any number of the vast information technologies available, is one
way to ensure longevity and financial vitality for big businesses. Three companies that
exemplify this adaptability are Dell computers, Panera Bread, and Express clothing company.
Throughout this course, we have learned valuable skills that may be adapted to many
sectors of the manufacturing and service industries. Armed with this wealth of knowledge, I
intend to tackle the weighty subject of "Suppliers Chain Management focusing on IT application
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and its implications.” My main objectives shall be to:
1. Define the Supply Chain System;
2. Introduce the History of Supply Chain Management;
3. Discuss Recent Advancements in Information Technology that have Affected the
Manufacturing and Service Industries; and
4. Discuss Supply Chains and Information Technology in Relation to Three Giants of their
Industries:
a. Dell
b. Panera Bread
c. Express

4. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
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The Supply Chain Management Defined
To gain a full perspective on how information technology is applied and the implications
of those applications within the supply chain, we must first fully understand the intricacies of the
supply chain itself. “A supply chain encompasses all activities associated with the flow and
transformation of goods and services from the raw materials stage to the end user (customers), as
well as the associated information flows” (Russell & Taylor, 2009). This definition may be
applied to both tangible goods and service industries.
A supply chain is only as effective as the links in the “chain; “those entities may include
suppliers, carriers, manufacturing sites, distribution centers, retailers, and customers” (Lummus
and Vokurka, 1997). That is, the success of a business relies on a long chain of integrated
members working together towards the common goals of productivity and eventual profit.
A consulting firm in Boston, Advanced Manufacturing Research developed a model that
spells out the goals and missions of successful supply chain management. As noted in Lummus
and Vokurka’s 1997 academic article, Defining Supply Chain Management: a Historical
Perspective and Practical Guidelines, successful supply chain management should incorporate:
 Greater sharing of information between vendors and customers.
 Horizontal business processes replacing vertical departmental functions.
 Shift from mass production to customized products.
 Increased reliance on purchased materials and outside processing with a simultaneous
reduction in the number of suppliers.
 Greater emphasis on organizational and process flexibility.
 Necessity to coordinate processes across many sites.
 Employee empowerment and the need for rules-based real time decision support systems.
 Competitive pressure to introduce new products more quickly.

5. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
Historical Development of Supply Chain Management and Information Technology
Interestingly, according to Lummus, the concept of supply chain management as a well-thought-
out notion did not develop until the mid 1980s and early 1990s. Companies such as
Whirlpool, Wal-Mart, and Hewlett-Packard were forerunners in developing the concept. Supply
chain management as we know it today was born in the textile and grocery industries as a way to
unite a vast network of suppliers, retailers, and end-users. Working together as a cohesive team
that had one end mission in sight: to create profit, other industries quickly took notice of what the
textile manufacturers and grocery suppliers were doing. The concept of an organized and
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structured network soon productively invaded most other industries.
Coinciding with the development of supply chain management was the wide-spread use
of the Internet and electronic databases. In the 1969, the Internet was “born” (Rosenbaum, 2009).
It was not until the early to mid 1990s that most homes and businesses began using the Internet
on a widespread basis. Prior to this time (from 1969-the mid 1990s), only the most profitable of
big business could afford such intricate computing systems that utilized the Internet. As personal
and business use of the Internet spread over the past 20 years, so have uses for it. Many sectors
of the business world have found advantageous ways to utilize the Internet.
With the Internet comes a plethora of ways to benefit in business use. Electronic
databases, storage, networking, and file sharing are the primary ways that businesses thus far
have used the Internet to their advantage as far as supply chain management is concerned.
Three Companies Examples: Dell Computers
Dell, as a leading global electronics manufacturer and retailer, has implemented facets of
supply chain management that have been the envy of the computer world for some years now.

6. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
They have incorporated lean production and supply chain integration into a profitable business.
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Since 1986, Dell has been building and selling computers.
Whereas logic would say that the supply chain starts at the sourcing phase of raw
material manufacturing, Dell takes a different approach. They pride themselves on giving their
customers a user-friendly, economical, yet super powered computer. They have made computers
accessible both financially and technologically to millions. Thus, Dell starts their supply chain
initiatives with their end-user in mind. Their corporate website boasts, that, “At the core of Dell's
innovation approach, however, remains an unwavering commitment to deliver new and better
solutions that directly address customer needs.” They use various techniques that would
normally be used at the end of the supply chain and instead implement than at the root of their
decision making: “We gather requirements directly through tens of thousands of customer
interactions daily, organized events, social media venues and customer panels,” their website
notes (http://content.dell.com/us/en/corp/d/corp-comm/cto-customer-driven- innovation.aspx).
Dell uses the latest in technologies to gather and analyze their end-user needs. With this,
they develop, manufacture, and sell the latest computers and accompanying hardware. They are
also infamous for being one of the first and most prominent outsourcers of IT specialists. Having
call centers as far as Latin America and India, Dell utilizes a vast network of databases and
servers to meet their suppliers’ and customers’ demands. Raw materials and system unit
components travel from around the globe to compose a Dell computer. They have managed to
“step outside of the box,” so to speak, and offer computers and hardware at reasonable prices due
to their command of global supply chain management and IT applications.

7. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
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Three Companies Examples: Panera Bread
While Panera also as their end user in mind (as most, if not all businesses do), their
command of the supply chain begins with sourcing the highest quality ingredients to create fine
baked goods. Through a large, global network of coffee, wheat, dairy, etc. suppliers, they
orchestrate a unique dynamic in the bakery business. Starting out as Au bon Pain in the 1980s,
Panera Bread has merged into a multi-billion dollar national business due to their supply chain
strategies. They have used two main principles that have carried their brand from failing bakery
to successful conglomerate:
1. Source the highest quality, artisanal raw materials
2. Get the best bulk prices for these top-quality ingredients
3. Turn a profit by making them into something exceptional and indispens ible as far as
taste and quality are concerned.
This is in contrast to what we see at Dell. Dell starts with their end user and works their
way back to sourcing. Panera, on the other hand, starts at the source with their customer/end-user’s
tastes always in sight. They are able to scale the globe and source exceptional raw
ingredients due to a complex network of employees, contacts, and computerized ordering
systems. Knowing what each store needs and anticipating their needs are essential to
profitability. Forecasting in the food service industry is crucial. Panera uses the latest technology
in supply chain management from sourcing grain to stocking each franchise’s shelves.
Three Companies Examples: Express
Express clothing store is another big business phoenix that has risen from the ashes.
Starting out at Structure of the Limited, Inc. brand, Express has revolutionized their image and
sales numbers over the last decade. They, too, outsource and source many of the tasks along their

8. OPM 3113: SUPPLY CHAIN MANAGEMENT
Abdullah Alabdullah
supply chain. In a recent interview to one sales manager at a local Express Men’s store, I gained
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a lot of insight that is not generally available to the public at large.
Express outsources many of their textile assembly, pattern making, and sewing all to
locations all over the globe: China, Indonesia, Vietnam and other areas of Asia are the economic
favorites. This common practice along the supply at first seems fiscally impossible; send
information through the internet and couriers across the globe and then send the finish product
back. This seems more expensive, not less. But plants, workers, and raw materials are pennies on
the dollar compared to their factories in New York and Los Angeles. Designers send their
sketches to China and from there the vision is translated into a wearable garment. The garments
are shipped via freight to ports in the U.S. and then distributed to malls across the country. This
is a common practice in the fashion industry. Through the carefully choreographed supply chain,
Express and countless other fashion labels have increased profit by outsourcing many of their
supply chain tasks overseas.
The Future of Supply Chain Management and Information Technology
Through examining Dell, Panera Bread, and Express more carefully, the current and
lasting trends are: 1) Utilizing the latest technology in databases, networks, and computing
systems to 2) outsource many raw materials and supply chain tasks. The future of big business in
America and beyond relies heavily on the advancement of information technology. Through
these complex networks, businesses are able to outsource the highest quality raw materials to
meet customers’ discerning tastes and, ultimately, increase profitability.

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Abdullah Alabdullah
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References
http://www.express.com/content.jsp?pageName=Investor
Innovation Approach . (2010). Who We Are: Industry-Leading Research and Development
Driven by Customer Needs, Cutting-Edge Solutions and Strategic Partnerships.
Retrieved December 3, 2010, from Dell website:
http://content.dell.com/us/en/corp/d/corp-comm/cto-customer-driven- innovation.aspx
Lummus, R. R. (1997). Defining Supply Chain Managment: A Historical Perspective and
Practical Guidelines (Unpublished master's thesis). Central Missouri State University /
Texas A & M University, Warrensburg, Missouri / College Station, Texas .
http://www.panerabread.com/about/investor/governance/
Rosenbaum, P. (2009, October 29). Tech: Internet . In Web pioneer recalls 'birth of the Internet.
Retrieved November 30, 2010, from CNN News website: http://articles.cnn.com/2009-
10-29/tech kleinrock.internet_1_internet-leonard-kleinrock-computer?_s=PM:TECH
Russell, R. S., & Taylor, B. W., III. (2009). Chapter 5 Service Design. In Operations
Management: Creating Value Along the Supply Chain, 6th Edition (pp. 183-219).
Hoboken, NY: John Wiley & Sons, Inc.
Shelly, G. B., & Vermaat, M. E. (2010). Discovering Computers Complete: Living in a Digital
World 2011. Boston, MA: Course Technology.