This report is structured to provide a deep and thorough understanding of Information Technology (IT) integration in the Supply Chain Management (SCM) of the organisation. Supply chain management has long been considered as the way of effectively managing the business operations. However, with the development of new technologies and systems companies started to automatize their SCM network by adopting new and latest technologies. Hershey also did the same for improving its overall supply chain network. However, it did so without pursuing any planning or systematic operational strategy due to which it had to suffer the consequences. For improving its shipping and logistic system, it invested a huge amount in implementing IT system from three of the famous IT companies. While doing so it ignored the other two important aspects of supply chain i.e. distribution and delivery that got disruption due to lack of attention. Thus, the report has critically analysed how the operations strategy lead to an effective management of the supply chain model. Moreover, the IT integration in to the organisational supply chain is also discussed in detailed by highlighting Hershey as the example. In the end, a critical evaluation of comparison between Dell and Hershey’s IT enabled SCM has been conducted to show the discrepancies in the Hershey’s supply chain. The analysis showed that Dell due to its effective change management and proper strategic implementation showed potential benefits of IT enabled SCM. However, Hershey lack behind in improving its SCM network despite of implementing the IT systems in its SCM.
S. #| Table of Contents| Page #|
1| Executive Summary| 2|
2| Introduction| 4|
3| Question 1| 5|
4| Question 2| 7|
5| Question 3| 10|
6| Conclusion| 13|
7| References| 14|
The changing needs and demands of the business and the increasing rivalry of the market is putting pressure on firms to strengthen their value creation network. This has caused many firms to adopt the practices of supply chain management (SCM). The purpose for adopting the SCM is to integrate the value creation network in the firm for outperforming the rivalry and threats exist in the industry (Narasimhan, Kim & Tan, 2008). Håkansson and Persson (2004) explained that supply chain is more than a process of method. It is an integrated network of different activities that are carried out for transforming and converting the raw materials in to finished goods in order to deliver them to the end users. This implies that the SCM involves everyone from vendor and manufacturer to retailer and customers. The SCM is integrated in the businesses in order to ensure that the customers get the desired products in the minimum possible time and cost. According to Qi, Boyer and Zhao (2009), the effective SCM is emphasised more by the businesses because it hinges upon the technological advancements that makes the SCM more efficient. It is often seen that the implementation of SCM requires a great deal of time and money. Dong, Xu and Zhu (2009) argued that this is because the large companies that opts SCM require substantial time and cost due to their high scope and global outreach. Moreover, the implementation of SCM brings along new technologies that need to be integrated into the entire system and people of the organisation. Thus, an integrated SCM requires a proper strategy and systematic implementation procedure in order to attain the successful outcome and results (Håkansson et al., 2004). Thus, the purpose of this report is to conduct the critical analysis of the Hershey’s Supply Chain Management strategies and how it integrated IT solutions into its SCM network. The comparison would also be made between the SCM strategies and operations of Hershey’s and Dell in order to evaluate the effectiveness of their strategies.
The operational strategy refers to the systematic procedure and...