...Supply Chain Management Case study: 7-eleven Japan Co. Name: Chow Lai Ting Student number: 113226 Section 5 Background Seven-Eleven Japan was established in 1973 with its first store opened in Tokyo. It is considered an outstanding and well-known enterprise in Japan. The rapid growth of Seven-Eleven is also remarkable. In 1985 to 2007, its number of store had drastically increased from 2,299 to 12,034. The annual sales increased from 386 billion to 91.5 billion. Additionally, the company’s return on equity averaged around 14 percent between 2000 and 2004. Seven-eleven is not only the largest convenient store but also the largest retailer with its number of store and operation income in Japan. The reason why Seven-eleven is such successful is its competitive strategy, which is providing a high-availability of product that the customer find it convenient to shop. Thanks to its market dominant strategy and franchise system adapted, and its drivers make the best balance to the trade-off between efficiency and responsiveness, Seven-eleven has considerably become the most successful retail store. Problems The problem of Seven-eleven supply chain is that it replies too much on the transportation to make replenishment every day. The store would not have enough inventories if there is any accidents happen since the storage unit in store is very little. The risks associated with the system that Seven-eleven uses are costly with demand uncertainty. When the demand patterns...
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...Reverse Auctions: A reverse auction is a type of auction in which the roles of buyer and seller are reversed. In an ordinary or forward auction, buyers compete to obtain a good or service by offering increasingly higher prices. But in a reverse auction, the sellers compete to obtain business from the buyer and the participants place lower and lower bids, until the lowest bidder wins. A reverse auction is similar to a unique bid auction as the basic principle remains the same, however a unique bid auction follows the traditional auction format more closely as each bid is kept confidential and one clear winner will emerge at the completion of the auction. . The reverse auction has been widely used by many organizations and is aimed at reducing costs and sourcing services or products at the lowest possible price from the participating suppliers. Some of the benefits are: A reverse auction provides buyers with the most competitively priced solution to their needs by pitching suppliers against each other to be the one offering the lowest-priced bid. It saves time in the procurement process and also streamlines the procurement process as well as reduces the need to send a different request for proposal to each potential supplier. It equally has some disadvantages that makes it a bad method like creating problems when proper controls are not put in place. Competition for the lowest price can make some suppliers to cut corners to maximize benefit or even send them out of business...
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...Solectron Supply Chain Management Best Practice Background Solectron was founded in 1977 as the as the “Solar Energy Company”, and originally produced solar energy products. Today it is a worldwide provider of electronics manufacturing services to original equipment manufacturers (OEM’s). The company provides customized, integrated manufacturing services that span all three stages of the product life cycle, including pre-manufacturing, manufacturing, and post-manufacturing (see Table 1). These servies are now integrated to the point where Solectron is now responsible for all supply chain processes associated with sourcing parts, building, and distribution of electronics and systems for almost every major OEM customer in the industry. A list of primary OEM customers is shown in Table 2, which spans the telecommunication, networking, computer systems, peripherals, semiconductors, consumer electronics, industrial equipment, medical electronics, avionics, and automotive electronics industries. These industries are in different stages of maturity, with network manufacturers fairly new, and computer systems fairly mature. The diversity of major customers in this list is testimony to their success. In 1991, Solectron won the Malcolm Baldrige National Quality Award, reflecting the high level of performance achieved within this company. The company has also been honored with more than 100 recognition awards, 25 of which were received this year (see Table 3). The...
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...Ford Motor Company: Supply Chain Strategy Executive Summary The Ford Motor Company is a well established, international automotive design and production company that is shifting the company mission to have an emphasis on shareholder value and customer responsiveness. In the face of increasing international competition, Ford has recognized several facets of operations that can be better executed in order to attain the outlined objectives. There has been several alternatives to various operations within Ford that can directly alter the fundamentals of its business, all with a strategic significance put on the supply chain procedures. This case study identifies these options; maintaining current practices and partnerships, standardization of their supply chain and sub-system products to simplify the supply process, adjust the retail services and dealership chains to drive market driven sales and a combination of virtual integration with key suppliers to drive relationship based supply that is determined by a forecast driven sales and production model, called the Ford 2000 Process. Through the evaluation of the presented alternatives, the Ford 2000 Process has been selected as being the most effective path to achieve the corporate goals of the Ford Motor Company. Ford should be able to utilize it’s current market share and global supply network to generate beneficial partnerships on key suppliers and stabilize a fluctuating production model that is riddled with waste...
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...An Introduction To Supply Chain Management Commerce Essay The term supply chain management was first coined by a U.S. industry consultant in the early 1980s. However, the concept of a supply chain in management was of great importance long before, in the early 20th century. Supply chain management is the word coined for the effective management of all the partners and the information disseminated between them. Take an example of Dell computers, Micheal Dell cant built his business just by selling the computers to the customers, but he need to see the complex problems of the customers and solve these problems through just in time manufacturing of the product, then how to minimize the wastage in the production then to evaluate what customers are doing and how they can make their production efficiently (NYT 2010), as the manufacturer cannot sell the product at the higher prices than the competitors are selling but through effective management you can actually reduce the cost, so concisely he need to be a master of supply chain management. Before supply chain management there was effective inventory control system exist but due to some pit falls like; no supply chain metrics, inadequate definition of customer service, , organizational barriers, inaccurate delivery status data, simplistic inventory stocking policies, inefficient information systems, ignoring the impact of uncertainties, and an incomplete view of the supply chain (Teigen 1997). There is a need for another system...
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...Solectron Supply Chain Management Best Practice Background Solectron was founded in 1977 as the as the “Solar Energy Company”, and originally produced solar energy products. Today it is a worldwide provider of electronics manufacturing services to original equipment manufacturers (OEM’s). The company provides customized, integrated manufacturing services that span all three stages of the product life cycle, including pre-manufacturing, manufacturing, and post-manufacturing (see Table 1). These servies are now integrated to the point where Solectron is now responsible for all supply chain processes associated with sourcing parts, building, and distribution of electronics and systems for almost every major OEM customer in the industry. A list of primary OEM customers is shown in Table 2, which spans the telecommunication, networking, computer systems, peripherals, semiconductors, consumer electronics, industrial equipment, medical electronics, avionics, and automotive electronics industries. These industries are in different stages of maturity, with network manufacturers fairly new, and computer systems fairly mature. The diversity of major customers in this list is testimony to their success. In 1991, Solectron won the Malcolm Baldrige National Quality Award, reflecting the high level of performance achieved within this company. The company has also been honored with more than 100 recognition awards, 25 of which were received this year (see Table 3). The...
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...The Supply Chain Management Processes Keely L. Croxton, Sebastián J. García-Dastugue and Douglas M. Lambert The Ohio State University Dale S. Rogers University of Nevada, Reno Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what processes are to be considered, what sub-processes and activities are contained in each process, and how the processes interact with each other and with the traditional functional silos. In this paper, we provide strategic and operational descriptions of each of the eight supply chain processes identified by members of The Global Supply Chain Forum, as well as illustrations of the interfaces among the processes and an example of how a process approach can be implemented within an organization. Our aim is to provide managers with a framework to be used in implementing supply chain management, instructors with material useful in structuring a supply chain management course, and researchers with a set of opportunities for further development of the field. “Streamlining crosscompany processes is the next great frontier for reducing costs, enhancing quality, and speeding operations”. Supply chain management is increasingly being recognized as the integration of key business processes across the supply chain. For...
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...THE IMPACT OF SUPPLY CHAIN MANAGEMENT ON GOVERNMENT INSTITUTIONS A Research Dissertation by GEORGE FREDERICK JACOBSON STUDENT NO. 94032512 B. TECH: PURCHASING MANAGEMENT Submitted in partial fulfilment of the requirements for the degree MBA in the Business School Faculty of Management Sciences TSHWANE UNIVERSITY OF TECHNOLOGY Supervisor: Prof. J A Watkins Pretoria 4 June 2007 PUBLICATION OF DISSERTATION The attention of the reader is specifically drawn to the fact that the national Government departments, who sanctioned this research study, specifically requested that the work should not be published due to the sensitivity of ongoing remedial actions. DECLARATION OF COPYRIGHT I hereby declare that this dissertation submitted for the degree (Magister Technologia) at the Tshwane University of Technology, is my own original unaided work and has not previously been submitted to any other institution or higher education. I further declare that all sources cited are cited or quoted are indicated or acknowledged by means of a comprehensive list of references. G.F. JACOBSON Copyright© Tshwane University of Technology (2007) i DEDICATION This study is dedicated to my family and friends for their love and support through this process allowing me to grow as a person. ii ACKNOWLEDGEMENTS I would like to express my sincere gratitude and appreciation to the following: My Lord and Saviour, Jesus Christ for His continued blessings...
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...Crafting And Executive Strategy Assignment 1 Case Study # 6 Dell Inc. In 2008 : Can it overtake Hewlett – Packard as the worldwide leaders in personal computers ? Submitted to : Prof. James Farmer Submitted By : Roshni Patel Student Number : 300686000 Question 1: Dell inc. Began with a ‘winning strategy’. At this time (2012), this strategy is not used to the extent that it was once was and the company is now not the company that it was once. Did Dell’s strategy fails, did the company fail to effectively execute the strategy or did the environment changes around Dell? Evaluate the possibilities. Answer: Dell is a global company that delivers products and services in more than 190 countries and company had given employment to over 4000 employees. The company deals in enterprise computing products, monitors, printers, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and downs from its inception in 1984 and has to face many challenges and competitors to stay ahead in the market. Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to consumers which would eliminate the additional cost of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risk associated with...
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...Distribution Strategy (Group D _ Session 7 _ Assignment) San Fabian (SF) - MacDowell Philippines (MP) - Paulo Remita Incorporated (PR) Problem Statement After 19 years of an established “exclusive-distribution” agreement with San Fabian; MacDowell Philippines decided to terminate the deal. MacDowell Philippines decided to take over the Wholesale role of San Fabian (SF) and would participate directly in large Commercials as well as Government Projects. Accordingly MP (MacDowell Philippines) products line will be made available to Construction Supply dealers across Philippines. MP claimed to be forced to take that step to help increasing Sales since they experienced an operation capacity around 50%. Situation Analysis As Mr. Paul Cheng _ President of SF was looking at that situation imposed by MP; he went back in time when the relationship started between both corporations in 1967 and continued since then and saw how that engagement was considered to be a “ Natural Fit “ or in other words a “ Win to Win “ situation. There were things SF wanted in MP and other things MP was missing that could be briefly explained as follows: a) SF MP * SF was missing the roofing product line * MP was the only manufacturers who accepted the “exclusive-distribution” agreement b) MP SF * SF was a growing co. with a solid, good reputation * SF didn’t carry any competing product line * SF could offer a national coverage * SF would be able to pay...
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...control from Spain, the sole logistics hub. Although 34% of Inditex’s manufacturing is outsourced to Asia, and 14% to parts of Europe including Turkey, those tend to be the more basic items. The high-fashion stuff, 49% of what it sells, is cut and finished in Spain though some sewing is done elsewhere. So this structure clearly makes sense. Long lead times and the concomitant inventories are more tolerable for basic T-shirts and such that will essentially always be carried. Labor savings from sourcing in Asia are likely more than enough to offset the added holding cost. That wouldn’t be true for products with more “fashion content” that may sell today but not tomorrow. Keeping that work in or near Spain shortens the lead time and avoid supply-demand mismatches. But how long will Zara be able to keep with this model? Particularly if the real growth opportunity is in Asia. A big question, however, is how far [Inditex] can go on growing from its home base. Now that 15% of its sales are in Asia, does it make sense to run product design and logistics just from Spain? Some clothes it has made in China are shipped to Spain and then back to shops in China. The...
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...Which type of vertical marketing system does Zara employ? List all the benefits that Zara receives by having adopted this system. Zara employs a Corporate Vertical Marketing System. Zara has managed to build a system that is controlled from a single place and that it allows it for quick response, decision and problem solving. Because Zara’s parent company Inditex owns most of the resources needed for the process of clothing design, production and distribution it is able to “control most every aspect of the supply chain, from design and production to its own worldwide distribution network” (Armstrong & Kotler). Vertical Marketing System Introduction In an organization, effective marketing strategies play an important role in boosting the performance of the business. In the integration of the corporate leaders in pursuit of their financial objectives, the creation of marketing system has been established. The creation of vertical marketing system is introduced and defined as a distributing channel in which the manufacturer, wholesaler, and retailer act as a single system. An organization that can control the product and services until it reached to the end consumers is the plain example of vertical marketing system. Apparently only few of the businesses around the world successfully managed this type of system. It may define as a difficult approach to maintain the sales and effectiveness but it serves as the strongest point of the organization to boost the various...
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...Shidler College of Business University of Hawai´i at Mānoa Vietnam MBA Program Fall 2011 BUS 632—Business Strategy Dates of Course: Oct. 20 - 29 Professor James Richardson BusAd C501f Office Phone: 956-7270 Email: jamesr@hawaii.edu Course Outline and Objectives: BUS 632 covers strategic management as an integrating paradigm for your business knowledge. The aim is to develop an understanding of the strategic challenges facing managers in competitive markets. Globalization, foreign competition, and rapidly changing technology have sharply increased the intensity of competition in most industries. We will learn how leading firms have devised strategies, structured, and managed their organizations to achieve competitive advantage in this challenging environment. Strategic management deals with uncertainty and unstructured situations. You will learn tools and concepts for putting some structure into your analysis of strategic issues. But most strategic choices require judgment. Case studies enable us to test our judgment and learn vicariously from successful and unsuccessful managers in a variety of situations. Hence, class discussion of the cases is a central part of your learning experience. Methods: We will combine cases, lectures, individual and group papers and presentations. Pre-requisites: First semester of Core. Textbook: Jay Barney, Gaining and Sustaining Competitive Advantage, Fourth Edition. Case Packet will be available. Assignments and Grading: 1. Participation: (15%)...
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...achieve world-class supply chain efficiencies targeted primarily at driving down costs. Wal-Mart isn’t just the largest retailer in the world, over the past several years it has popped in and out of the top spot on the Fortune 500 list—meaning that the firm has had revenues greater than any firm in the United States. Wal-Mart is so big that in three months it sells more than a whole year’s worth of sales at number two U.S. retailer, Home Depot.[1] At that size, it’s clear that Wal-Mart’s key source of competitive advantage is scale. But firms don’t turn into giants overnight. Wal-Mart grew in large part by leveraging information systems to an extent never before seen in the retail industry. Technology tightly coordinates the Wal-Mart value chain from tip to tail, while these systems also deliver a mineable data asset that’s unmatched in U.S. retail. To get a sense of the firm’s overall efficiencies, at the end of the prior decade a McKinsey study found that Wal-Mart was responsible for some 12 percent of the productivity gains in the entire U.S. economy.[2] The firm’s capacity as a systems innovator is so respected that many senior Wal-Mart IT executives have been snatched up for top roles at Dell, HP, Amazon, and Microsoft. And lest one think that innovation is the province of only those located in the technology hubs of Silicon Valley, Boston, and Seattle, remember that Wal-Mart is headquartered in Bentonville, Arkansas. A Data-Driven Value Chain The Wal-Mart efficiency...
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...My organization, EIS (Enterprise Information Solutions), GBS (Global Business Services) at MWV has many different vendors. MWV has many different vendors and a Global Supply Chain organization to source and support. A quick Google search should be enough to convince anyone that there many, if not a vast array, of vendor selection options out there to choose from. If you begin to focus on “current” literature you can observe that the selection techniques have sped along like Moore’s law as we hurtle into this future where ideas and projects have a shelf life and have to happen very quickly, often as a matter of survival. There is everything from simple, agile approaches to very complex mathematical and computer modeling solutions that attempt to simplify Multiple Criteria Decision Making (MCDM). The longer you look, the more you begin to realize just how complicated this subject is. MWV didn’t get all it’s vendors the same way. Vendors were evaluated in different ways, some more some less. Many different approaches or methodologies were used to evaluate the criteria. Different tools were also used. There are many different criteria that were considered or ignored. It seems like the list of criteria just grows and grows over time. Dickson (23 criterion) and Weber (10 criterion) and then Zhang introduced and summarized supplier selection criteria from publication reviews starting in 1966. . Sim, Omar Chee and Gan in A Survey on Supplier Selection Criteria...”...
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