Unit 1 DB 2 – SR

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common supply chain begins with biological, political and ecological    regulations or guidelines of natural resources, superseded by the    extraction or removal of raw materials which include considerable    links of production such as; assembly, merging and component    fabrication or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.