Reponse 1:
The purpose of this unit 1 discussion board 2 assignment will be to examine and explain the term supply chain and how it is used to form or create a successful supply chain strategy or plan.
Supply chain is recognized or identified as an organizational scheme or structure, activities, resources, people and information involved in transporting merchandise or services from the supplier to the consumer. Activities of any supply chain will be comprised of transforming raw materials, components and natural resources into finished product or goods which is then delivered to the client or consumer.
A common supply chain begins with biological, political and ecological regulations or guidelines of natural resources, superseded by the extraction or removal of raw materials which include considerable links of production such as; assembly, merging and component fabrication or construction.
These series of processes play a significant role when trying to move or relocate storage facilities of decreased size and increased remote locations within certain geographical regions that still make it possible for both goods and services able to reach the client or customer (Grant, Trautrims, & Wong, 2015).
The supply chain system or strategy is an established network between both the organization and their suppliers in an attempt to manufacture and distribute specific merchandise or product.
The supply chain process or method consist of a procedure necessary for ensuring that the goods and services are conveyed to the consumer.
On another note there is what is known as business logistics which refers to and describes this method as the manufacturing and distribution procedures within a company or business, however, the supply chain method includes and focuses on retailers, suppliers and manufacturers that distribute the merchandise to the consumer (Anklesaria, 2008).
The capabilities of a well planned and implemented supply chain strategy is guided and driven by a series of supply chain drivers. These drivers can be managed and developed to affirm efficiency or understanding in regards to changes or modifications to the requirements of a business. Supply chain drivers permit for useful framework or structure as they relate to the capabilities of the supply chain strategy or scheme (Mentzer, 2004). Listed below are drivers that are vital to the supply chain process.
Production - The purpose of this driver relates to the building or constructing of facilities with an excessive amount of capacity and utilization of adjustable manufacturing skills necessary in producing wide array of items.
Inventory - The responsiveness of this driver is the stocking or amassing of a wide range of merchandise that can be stocked in numerous locations ensuring that the product or merchandise itself is close and immediately available to the consumer.
Location - This responsiveness places emphasis on the location or region where the business will establish operations near their customer base. By operating from just a few locations, it is then possible to to efficiently centralize and function in locations or regions that are common.
Transportation - Successful responsiveness is made possible by achieving a mode of transportation or distribution that is both flexible and expedient using airplanes or trucks.
Information - As the gathering and sharing of information grows increasingly high due to technology getting stronger each year, information becomes more accessible, less expensive and easier to use. Much like money in today's society, information has become a very useful commodity which can be used to increase the performance or capabilities of the other four drivers.
The company that I feel in my opinion that has managed to use use its supply chain to gain a competitive advantage would be DHL supply chain. As an employee of this company for the past five years which originally was EXEL Logistics and Transportation before being bought out by DHL, the company's primary is based on selected or targeted sectors within the industry to help the customer benefit from working with supply chain specialist.
The goal and objective is to establish and develop long-term partnerships and relationships while continuing to work closely with their consumers. The know-how of DHL employees combined within the 3PL industry gives the company a competitive advantage also as leading solutions provider among its closest 3PL competitors.
Response 2:
The Role of the Supply Chain
What is a supply chain?
A supply chain is self-explanatory thing. At its simplest, it is a chain of all the steps involved with the bringing a product to market. Looking at it from a more in-depth perspective (Rouse, 2018), the supply chain begins with the creating an item to be sold in stores, and encompasses the marketing, storage, transportation, and finally the purchase by the consumer.
The Importance of a Business Having a Supply Chain Strategy
Given that the supply chain is the link from developing and bringing a product to market and selling that product to the customer base of the company, having a functional supply chain strategy is of great importance to a business, and should not be understated.
A supply chain strategy should not only enhance (Logistics Bureau, 2018), but also aid the company in developing a business strategy, but also reaching company instituted landmarks such as sales goals. A strong supply chain strategy should also be one that is easy to understand and execute at all levels and departments of the business.
The supply chain strategy should also be able to adapt to changes in performance from within the company, as well as any change in trends industry wide, and finally, the company should be able to cut costs, and improve relations with their customer base as a result of a properly implemented supply chain strategy.
Drivers of the Supply Chain Strategy
There are a number of drivers, so to speak that enable a supply chain to function properly. They include the production of the good (Hugos, 2014), this step is a driver because it determines how the product gets made. Is the company going to produce it in house, or have it produced by an outside source?
Also, consideration should be paid to where the item is being produced, as this can shorten the time it takes for a finished good to go from production and into the customers hands.
Another driver of the supply chain is inventory (Hugos, 2014), inventory is a driver as it indicates how much of an item is on-hand, how much needs to be produced, and things of that nature. Inventory and production can act as a point of reference in that they help determine which products are more successful than others.
A third driver is the location of where the business conducts its operations (Hugos, 2014), as stated above if the company decides to have an outside source manufacture its good, it would be prudent for the outside manufacturer in close proximity to the company to cut down on shipping time from the outside manufacturer to the business, and then from the business to its customers.
Also, location is important because it can be tied into production, and inventory, may be more so with a smaller business than a larger one, because a smaller business may not have the luxury of outside manufacturing and may need to be centrally located near its customer base.
A fourth driver of the supply chain is transportation. This driver is critical (Hugos, 2014), as it determines how the item gets from point A to point B. When it comes to transportation, the most critical aspect to consider is how the finished good gets from the company to its customers.
Quicker means of transportation usually mean higher shipping and freight costs, so this driver is critical as it can help save the company money by not needing to ship everything with a sense of urgency.
Finally, the fifth and what could be the most critical supply chain driver, which is information (Hugos, 2014), having statistics, and other historical data drive the supply chain, because it allows for the management team of the business to make educated decisions in regards to the previously mentioned drivers, as it can cut costs on production, inventory, location, and how products are transported from point A to point B.
Supply Chain as a Competitive Advantage
Walmart (Lu, 2018) is a company that uses its supply chain as a competitive advantage. One of the ways the company does this is by reducing the supply chain of the company. Another way is to use a technique called vendor managed inventory, or VMI, which the manufacturers are responsible for maintaining their goods, while they are being store at Walmart storage facilities.
The final way that Walmart uses its supply chain as a competitive advantage is by using a technique called cross-docking. Cross-docking is a technique in which goods are loaded from an inbound vehicle to a waiting outbound vehicle. After the switch the outbound vehicle then proceeds to deliver the goods to the specified Walmart stores. Cross-docking reduces storage costs for vehicles and ensures that the goods get from the manufacture to the stores as quickly as possible.