Overview
Supply Chain Stages and Flows for Purchasing a Can of Soda
There are multiple supply chain stages for a can of soda. First, companies must buy and gather the raw materials needed to create the can and soda, including aluminum for the cans and the ingredients for the soda. Next, the raw materials get sent to the manufacturer who will create the can shape using the aluminum and mix the ingredients to create the soda. Once the soda is added to the cans and labeled, the new soda cans will be sent to a distributor for storage and distribution. Retail establishments will order soda from the distributors to be delivered at an agreed upon time to then be sold to customers. There are also three flows through the supply chain process: information, which focuses on demand of the product and product ordering, product, which encompasses the supply chain stages listed above, and funds, which focuses on the change in money throughout the various stages. The financial flow is vital for a successful supply chain: without proper finance processes solidified throughout the stages, there can be bottlenecks in the process if money is not available or provided (Xie et al., 2023).
Why Should Dell Consider Total Supply Chain Profitability?
Dell should consider total supply chain profitability because, considering the company’s multiple supply chain stages, one cost-savings decision in a singular stage may have a negative financial downstream influence. For example, if Dell decided to have faster yet smaller delivery options, the associated costs to get raw materials sent to manufacturers will increase as faster deliveries will lead to more products ordered and inventory costs will increase as products are produced more frequently to meet increased demand. When adjusting ordering processes, the entirety of the supply chain profitability needs to be considered so cost savings in one stage are not absorbed in another (Lin et al., 2022).
Strategic, Planning, and Operational Decisions for Apparel Retailers
For an apparel retailer, the strategic decisions are how to source their products either domestically or globally, along with what distribution channels should be implemented such as warehouse location and whether internal or third-party logistics should be utilized. The planning decisions focus on decisions occurring in the quarter through full year, focusing on delivery methods from distribution centers to the retail stores or the stores to customers as well as what inventory procedures should be enacted. The inventory procedures account for all supply chain stages including inventory available at distribution centers for timely restocking. Finally, operational decisions focusing on day-to-day planning determine what inventory is available at each store and daily staffing requirements across the organization. For operational decisions, retailers also must consider demographic and locational demand to ensure their inventory and product choices match their customer base.
Cycles in the Supply Chain and Push/Pull Boundary for Book Purchases
The supply chain cycles when purchasing a book at a bookstore are the customer order cycle, the replenishment cycle, the manufacturing cycle, and the procurement cycle. Going in reverse order of the supply chain stages, the customer order cycle occurs between the customer buying the book from the store. The replenishment cycle is between the retailer ordering the book from the distributor to be stocked in their store. The manufacturing cycle is the distributor requesting the book be produced at the manufacturer. Finally, the procurement cycle is the manufacturer ordering the contents to make the book from suppliers, including paper and ink for the book itself and the information for the book from the author. The push/pull boundary occurs at the bookstore where the store predicts the book’s potential sales (push) and the customer’s purchase based on demand (pull).
Push/Pull Boundary and Processes Involved when Ordering a Book from Amazon
When a customer orders a book from Amazon, the push/pull boundary occurs at the distribution center instead of a retail store. A customer will order a book through Amazon, which will lead to one of the following two initial steps: the book gets created at the manufacturer using supplies provided by suppliers or the book will already be produced and will be picked and shipped to the customer. These steps are the pull sections of the process. The push section includes keeping manageable and accurate inventory levels at the distribution centers along with receiving newly published books from suppliers. As customer data is used to fulfill the online ordering process, Yu et al. (2022) discuss utilizing blockchain technology to ensure clean data throughout the supply chain process. One benefit of blockchain technology is clear transparency of data and information between manufacturers and retailers, reducing potential misalignment.
How do Supply Chain Flows Influence Success or Failure of Large Firms?
The product, information, and funds supply chain flows, if utilized correctly, provide enhanced success conditions by offering improved customer experience via faster delivery in the product flow, accurate product availability and balances in the information flow, and secure payment methods in the funds flow. Distribution center locations improve supply chain profitability because of reduced transportation costs and increased storage capacity for consumers. Proper data governance eases customer concerns around their personal data which increases the likelihood for purchases and overall increases supply chain profitability (Hohn & Durach, 2021).
Strategic, Planning, and Operational Decisions for Automotive Manufacturers
For an automotive manufacturer, the strategic decisions need to focus on plant and warehouse locations, supplier arrangement both domestically and internationally, and the determination of using internal logistics or partnering with outside partners. The planning decisions should focus on forecasting consumer demand and enacting manufacturing processes that will be followed at each location. Finally, the operational decisions should determine the daily processes and staffing required to meet the projected demand from customers.
References
Hohn, M. M., & Durach, C. F. (2021). Additive manufacturing in the apparel supply chain – Impact on supply chain governance and social sustainability. Internation Journal of Operations & Production Management, 41(7), 1035-1059. https://doi.org/10.1108/IJOPM-09-2020-0654Links to an external site.
Lin, J., & Zhou, L., & Spiegler, V. L. M., & Naim, M., & Syntetos, A. (2022). Push or pull? The impact of ordering policy choice on the dynamics of a hybrid closed-loop supply chain. European Journal of Operational Research, 300(1), 282-295. https://doi.org/10.1016/j.ejor.2021.10.031Links to an external site.
Xie, X., & Xu, X., & Zhou, Z., & Gu, J. (2023). Financing a push and pull supply chain under revenue sharing: Value addition and default risk transmission mechanism. International Journal of Production Research, 63(5), 1825-1850. https://doi.org/10.1080/00207543.2024.2392206Links to an external site.
Yu, Y., & Luo, Y., & Shi, Y. (2022). Adoption of blockchain technology in a two-stage supply chain: Spillover effect on workforce. Transportation Research Part E: Logistics and Transportation Review, 161. https://doi.org/10.1016/j.tre.2022.102685Links to an external site.
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