Aligning Incentives in Supply Chains On April 16‚ 2001‚ the world’s largest network-equipment maker‚ Cisco‚ shocked its investors when it told them that it would soon scrap around $2.5 billion of surplus raw materials. This would go down as one of the largest inventory write-offs in U.S. business history and gave Cisco a net loss of $2.69 billion for the month of May alone. A supply chain works well if its companies’ incentives are aligned-that is‚ if the risks‚ costs‚ and rewards of doing business
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(Heizer/Render) Chapter 11 Supply Chain Management Section 1 The Supply Chain’s Strategic Importance 1) Even though a firm may have a low cost strategy‚ supply-chain strategy can select suppliers primarily on response or differentiation. Answer: FALSE 2) The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans. Answer: FALSE 3) When using the low-cost strategy for supply chain management‚ a firm should
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2.1 Efficiency Zara’s supply chain is efficient mainly in terms of time and inventory management as discussed below. Zara allows store managers to order twice per week. The shipments are then prepared and delivered in least possible time. The products are displayed in stores on the same day they arrive. This allows Zara to reduce the lead time whenever required. (Benjabutr‚ n.d.) Moreover‚ Zara is able to get a new product from just a sketch to a store in 4 to 6 weeks. This is considered to be unexpectedly
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Supply Chain Management (ENGM078) Sainsbury’s Supply Chain Strategies Arghavan Keivani 6150405 March 2011 A brief introduction to Sainsbury’s and its background J Sainsbury plc (Sainsbury’s) was founded in 1869 and is considered as a top UK-based food retailer having around 150‚000 employees. It drives a chain consist of 500 supermarkets and 290 smaller format stores through the country which offer groceries‚ electricals‚ clothing‚ homewares‚ DVD rentals and financial services. There
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Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. Wal-Mart’s competitive strategy is based on three dimensions: high product availability‚ a wide variety of goods‚ and everyday low pricing. Consistently providing a wide variety of goods at low prices presents a challenge to many retailers due to the costs required in managing transportation‚ inventory‚ facilities‚ and information. Their pioneering use of
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The Importance of Supply Chain Management Supply chain management (SCM) is very important and effective to all companies. David Simchi-Levi‚ Philip Kaminsky‚ and Edith Simchi-Levi defines supply chain management as “a set of approaches utilized to efficiently integrate suppliers‚ manufacturers‚ warehouses‚ and stores‚ so that merchandise is produced and distributed at the right quantities‚ to the right locations‚ and at the right time‚ in order to minimize systemwide costs while satisfying service
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Running head: Supply Chain Profitability The Challenges of Supply Chain Profitability Graduate School of Management Procurement and Contract Management Outline I. Introduction II. Value Chain Analysis A. Definition B. Importance C. Redesign III. Value Chain Reference Model A. Purpose B. Use C. Impact IV. Conclusion A. Effects upon organization B. Impact upon management Abstract This paper describes the challenges of supply chains management. It examines the various
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Introduction Supply chain management is the process that an organization uses to "improve the way the company finds the raw components it needs to make a product or service and deliver it to customers (www.supply-chain.org 2006)." There are five basics components of a supply chain management system-plan‚ source‚ make‚ deliver‚ and return. Planning is the "strategy for managing all the resources that go toward meeting customer demand for the product or service (www.supply-chain.org 2006)." The source
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CROCS: REVOLUTIONIZING AN INDUSTRY’S SUPPLY CHAIN FOR COMPETITIVE ADVANTAGE BHOOSHAN PARIKH CBS FTMBA 2008-09 OPERATIONS MANAGEMENT TERM PAPER 3/16/2009 Case Study This paper analyses and discusses the supply chain process of Crocs Inc. in a competitive and dynamic footwear industry. The paper critically evaluates the existing supply chain of the company against its current performance and changing market conditions and explains reasons for loss of competitive advantage of the company
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Executive Summary In this executive summary‚ i will introduce the ideas and details of Apple Inc’s supply chain in its current state. We will examine Apple’s strategy of being consumer based and evaluate the current state of business and some of the partnerships it has formed to remain one of the dominating forces in this industry. This report will cover a brief overview of the company‚ its current assortment of products it offers‚ future opportunities and threats that Apple may face‚ its current
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