Submitted to: Sir Munawwar Ahmed
This assignment discusses the supply chain concepts being
used in various companies.
Submitted by: Samir Malik
1. Wal Mart’s Secret Of Everyday Low Prices:
It can be observed that over the years Wal Mart has become the largest retailer with highest sales. This is due to the effective management of the supply chain. Wal Mart used the logistics technique of “Cross Docking” which resulted in reducing the inventory tied up in warehouses. Its supply chain comprises of vendor partnerships, cross docking and management of distribution, technology it uses and the integration (i.e. of suppliers, manufacturing, warehousing, and distribution to stores). The cycle begins from finding the suitable supplier at best price and who can meet the demand. Second step is the supplier shipping the goods to Wal Mart’s distribution centres where it is cross docked and sent to the stores. Wal Mart has state of the art technology that allows it to forecast accurate demand, to track its inventory level, to use the logistics routes which will be efficient and also to manage relationships with customers. This has helped Wal mart maintain low prices.
2. Dell- from Direct Sales To Channel Strategy:
Dell used to sell PCs directly to the customers, but it decided to do it through solution partners, channel partners and retail partners. This change was initiated due to the fact that the market was decreasing. Nowadays consumers want to choose from fewer choices. Prices have decreased. This contributed to Dell coming up with a dual strategy to maintain their market share. Dell’s Inspiron Notebook will be sold through Wal Mart. It has also decided to make its products available to the Chinese Market and it has decided to open retail store in Russia.
3. Honda’s Approach To Supplier Management:
Honda has built long term relations with its business partners. Honda shares business policies and purchasing measures with the suppliers. It also holds awards ceremonies for the suppliers. It also presents letters of appreciation to the suppliers who have contributed to the development of business. It also provides classroom lectures and training on occupational health and safety management systems to its suppliers. Honda carries out the procurement process by creating a free competition i.e. by opening doors to suppliers around the world. The company treats all suppliers as equal. It also respects the independence, policies and expertise of the suppliers.
4. Toyota- JIT Methodology:
Toyota has been able to fulfill the customer demands efficiently by linking all the activities of production to the real market demand. “Just in Time” principle uses the technique of using the items when they are needed. This has enabled Toyota to eliminate the waste completely. Toyota Production System is based on two concepts: first is Jidoka, which means when a problem arises, the equipment stops. Second concept is “Just in Time”, each process producing only what is needed by the next process. When an order is received, a production instruction is issued, and all the parts are provided on the assembly line so that assembling can be carried out.
5. Harley-Davidsons And Its Supply Chain:
It is and American cultural icon. Their motorcycles represent individuality and spirit of independence and freedom. It has been a leader in manufacturing motorcycles since 1903. The engineers of Harley Davidson work directly with suppliers to ensure that the designs are compatible with their capabilities. It also uses the Just in Time method. Suppliers are graded on parts per million bases. A monthly report is sent to all the suppliers informing them about their delivery performance and quality. The strategies used are cycle-time management (shortening company’s own procurement cycle), relationship management (uses internet to build relations with suppliers by sharing the quality...
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