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App B

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Associate Level Material
Appendix B

Picture the Supply Chain

Complete the chart below by outlining the digital content supply chain at Warner Bros. Entertainment.

|Upstream Component |Internal Component |Downstream Component |
|(sourcing/procurement) |(packing/assembly |(distribution) |
| |manufacturing) | |
| | | |
|This supply chain indicates the sourcing |Packaging, manufacturing and assembly take |This chain involves distribution – |
|that is made from an external supplier. |place at the same time in the same |externally. |
|The main supplier used by Warner Brothers |environment. | |
|is Hewlett Packard. | |Using broadband communications links, High |
| |Types of formats used are DVD, Blu-ray and |Def. Televisions and DVD’s. |
|Hewlett Packard provides them with a |HD DVD, I-Tunes and mobile devices for |Creating over 6000 motion pictures already |
|complete package of hardware, software and |video on demand. |that is stored in their library. |
|services for their media platform. HP also | |WB also has their own online presence, |
|provides a high performance storage unit |Warner brothers are completely a digital |providing the opportunity for their |
|that allows Warner Brothers maneuver at the|based upon what the demand is from the |customers to download interactive materials|
|high speed it demands. |consumers, and to stay on the same format |related to a certain character show such as|
| |that filmmakers used to maintain a quality |Bugs Bunny. |
| |product. | |
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| | | |
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Choose one of these components and make a recommendation for an improvement to that area of the supply chain. Explain your reasoning for the change.

Warner Brother found that customers wanted the website content to post on its own Websites. After reading the Case Study 8.3 (The Digital Supply Chain at Warner Bros. Entertainment) of the text, it became apparent to me that there is much reliance on Hewlett-Packard as their main supplier. According to Peter Meindl and Sunil Chopra (2004), A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. To keep from developing so much reliance on Hewlett-Packard, I would suggest that Warner Brother implement a vertical integration. By implementing the vertical integration, all products and services will be come together to meet a common goal in which satisfying customers are concerned. Chopra, Sunil and Peter Meindl. Supply Chain Management. 2 ed. Upper Saddle River: Pearson Prentice Hall, 2004.

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