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Supply chain strategy
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In order to have both an effective and efficient supply chain, managers should be focused on trying to achieve not only a cost effective supply chain, but a flexible one. In today’s economy, because the market is so volatile, trendy, and competitive, flexibility is the key to success. In order to respond to customers’ ever-increasing requirement demands, market leaders have positioned themselves well by continually investing in new key performance indicators, additional technology, improved supply chain networks, and streamlining efforts (Source One INC, 2013). This helps to maximize flexibility and overall responsiveness. With increased flexibility, leaders recognize that supply chains must be adjusted to meet different customer needs. In my research I will analyze Gate Gourmet’s use of information technology and the importance of supply chain integration.
Gate Gourmet current situation is airline caterer that offers
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Due to Gate Gourmet’s tight schedules and limited working space they need to stay in constant communication with suppliers and customers as to not disrupt the business.
The importance of supply chain integration in the context of Gate Gourmet’s supply chain is the trust level in the partnerships between airlines, suppliers, and Gate Gourmet. Trust helps in the participation of information sharing and an increase performance along the supply chain. As explained in the readings supply chain integration helped Gate Gourmet to increase efficiency with inventory management and in the production and delivery of food and ancillary goods with. Furthermore, Gate Gourmet can remain flexible during chaotic circumstances and quickly acclimate to the needs of the supply
On many occasions, Apple Inc. has been voted to boast the most efficient supply chain in the world. By leveraging wealth and pure business strength, Apple has been able to construct a supply chain that is both efficient and highly profitable. While much of this supply chain construction has come from great investing and business decisions by Steve Jobs and Tim Cook, it has come at the cost of many factory workers’ well being overseas. Overall, the construction of the highly organized supply chain has given Apple a competitive advantage over the rest of the market.
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
There has been significant concern in media about public health impact and decrease in people’s confidence regarding food safety. Recently, the number of cases of contaminated food has increased and product recalls have grown. For instance, babies in China were poisoned by the Sanlu´s contaminated milk four years ago (1), a contaminated Peanut from main distributor in United States that was used in hundreds of different products and industries. This has increased the focus on food safety by consumers, the industry, lawmakers and regulatory agencies.
Should Be noted ,The biggest difference Apple has from other manufacturers is that it sources its materials and components from other manufacturers that operate throughout the globe. For example, its displays are mainly made in Japan by Japan Display and Sharp, and some are still made in South Korea by LG Display; whilst the Touch ID sensor found in its recent iPad and iPhone models are made in Taiwan by TSMC (Taiwan Semiconductor Manufacturing Company) and Xintec. In fact, Apple's list of suppliers stretches to more than 200 various suppliers located throughout the world.
Qube Logistics has been able to give quality logistic service the customers at best prices because of its well-integrated and coordinated logistic infrastructure. It has been achieved by the flawless logistical system that ships any product anywhere in a moment’s notice. Qube Logistics operates on the just in time inventory management hence no inventory is stored this requires a logistics system that is highly automated and has a quick response strategy. It is considered to be the largest import and export logistic service provider in Australia. It started its operation in 2010 and with is efficient alliances and joint ventures it is successfully ruling the Australian import and export logistic market.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
These major supply chain components that have shaped Walmart’s success over recent years are their buyer bargaining power (one of Porter’s Five Forces), focus on the overall customer experience, and investments in emerging technologies along with the implementation of these technologies in their business plan. The third and final key trend in which all of the top 25 supply chain companies possess emerging digital business models. Over the past couple of years, Walmart has boosted its e-commerce operations and brought in a large portion of revenues from online sales (Aronow & Burkett, 2015, p. 20). Gartner Inc. describes Walmart as a “supply chain pioneer” that has continued its push into e-commerce and has expanded investment in multichannel drive-thru pick-up centers and a ‘click-and-collect’ grocery service offered at some of its stores (Aronow & Burkett, 2015, p. 20).
By integrating the different processes which the suppliers have the whole supply chain could work as a team thus achieving effectiveness and overall efficiency which is critical to success.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Relationships such as partnerships within the supply chain can be very beneficial to the companies involved in the relationships. Partnership sourcing has become very widespread in many industries. The benefits of such practices include innovation sharing, improved quality, integrated scheduling of production and deliveries and a reduction in cost. Companies are increasingly realizing the advantages that can be derived from seeking mutually beneficial, long-term relationships with suppliers. As more processes are linked between the supplier and the customer, it becomes more difficult for competitors to break in due to an increase in mutual
The traditional outlook of supply chain management only focused on delivery f goods to the customer at the cheapest price possible but the definitions of supply chain has been altered over time.The new supp...
In India every year about Rs. 50,000 crore worth of food produce is wasted. This is mainly because of the non-availability of proper infrastructure for storage and transportation of food products. McDonald's is committed to providing quality products and also supporting other Indian businesses. For this purpose McDonalds spent a few years setting up a unique Supply Chain, even before it started first restaurant in India. The McDonald’s supply chain is very critical and multi-layered. There are two categories in food ingredients supply, Tier-I and Tier-II suppliers.