Overview
Write a 600–800 word white paper for a consulting company about the supply chain and distribution strategy of a manufacturing company, based on a library article.
This assessment focuses on the supply chain management process, its importance to the success of a company, and the sequence of events and processes that bring products from manufacturers to consumers.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
• Competency 1: Design a supply chain to support an organizational strategy.
o Explain why a company’s supply chain strategy is successful.
• Competency 2: Improve efficiency in the supply chain.
o Describe the main challenges facing a company.
• Competency 3: Manage a supply chain in order to satisfy customers.
o Describe how a company has changed its supply chain to satisfy its customers.
• Competency 4: Communicate in a professional manner that is consistent with expectations for supply chain managers and participants.
o Exhibit proficiency in writing, critical thinking, and academic integrity by appropriately attributing sources.
Context
Supply Chain Basic Functions
The functions basic to all supply chains are:
• Planning.
• Sourcing.
• Making.
• Delivering.
Fundamental decisions are required from supply chain managers to define strategy in developing a supply chain that will effectively meet these four requirements.
Supply Chain Planning
Planning or forecasting includes decisions needed to define operations of the other four supply chain functions. Three approaches to supply chain planning are:
• Demand forecasting.
• Product pricing.
• Inventory management.
Sourcing or procurement involves decisions that determine the source of the resources that a firm requires for operations. This function traditionally included activities such as purchasing, consumption management, vendor selection, contract negotiation, and contract management. Recent global developments and trends in outsourcing have made this a dynamic changing role for supply chain managers.
Making or producing is the economic process of converting resources into goods and services. Typical activities in this function include product development and design, operations facility management, and production scheduling.
Distribution or delivering can include order management, delivery scheduling, and order processing. Inventory placement and delivery centers are of prime importance in supply management as the cost effectiveness of the entire system can rely upon the efficient delivery function
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
• Why is it important to consider uncertainty when evaluating supply chain design decisions?
• What are the major sources of uncertainty that can affect global supply chain decisions?
o Consider the financial, logistic, political, natural, cultural, and technological sources of uncertainty.
Assessment Instructions:
For this assessment, consider that you work as a business analyst for a consulting firm that specializes in helping clients improve their operations and associated processes. Your manager asked you to write a white paper that they will use to demonstrate how your firm can help clients implement best practices in their supply chains and distribution channels, and you and your manager selected Dell as the subject of the white paper.
Dell has been selling computers for over 25 years with its unique, direct build-to-order sales model.
As part of your research into Dell’s supply chain and distribution strategy, you identified related articles in the Capella library (linked in the Resources under the Required Resources heading) that you decided to use to help you write your white paper. You and your manager decided your white paper should address the following points:
• Analyze why Dell’s supply chain strategy is successful.
• Describe the main supply chain challenges that Dell is now facing and provide strategies to effectively overcome the challenges.
• Analyze how Dell has changed its supply chain to satisfy its customers. As an example, was Dell’s decision to sell its products via retail outlets a viable solution? Do you agree with this distribution strategy? Why or why not?
Based on the intended audience, your report should be well organized and written in clear, succinct language. Target 600–800 words. Attributing sources in your professional and academic work supports your analysis and conclusions and demonstrates ethical behavior and academic honesty. Following APA rules for attributing sources provides consistency and ensures that readers can locate original sources if desired.
Academic Integrity and APA Formatting
As a reminder related to using APA rules to ensure academic honesty:
1. When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed in your references page.
2. When paraphrasing (using your own words to describe a non-original idea), the paraphrased idea must be immediately followed by an in-text citation and the source must be listed in your references page.
Suggested Resources
Required Resources
The following resources are required to complete the assessment.
Library Resources
The following e-books or articles from the Capella University Library are linked directly in this course: (all attached as PDF)
• Gray, M. (2007). Revolving around the customer [supply chains customisation]. Manufacturing, 86(6), 28–31. doi:10.1049/me:20070603.
• Kapuscinski, R., Zhang, R. Q., Carbonneau, P., Moore, R., & Reeves, B. (2004). Inventory decisions in Dell’s supply chain. Interfaces, 34(3), 191–205. doi:10.1287/inte.1030.0068.
• Blanchard, D. (2012). Dell taps into innovation to reach emerging markets. Industry Week/IW, 261(11), 45.
Suggested Resources
The following optional resources are provided to support you in completing the assessment or to provide a helpful context.
Multimedia:
• Uncertainty Impacts the Supply Chain | Transcript. (attached/provided)
Library Resources
The following e-books or articles from the Capella University Library are linked directly in this course:
• Blanchard, D. (2010). Supply chain management best practices. (2nd ed.). Hoboken, NJ: Wiley.
• Drake, M. (2011). Global supply chain management. New York, NY: Business Expert Press.
• Greeff, G., & Ghoshal, R. (2004). Practical e-manufacturing and supply chain management. Oxford, England: Newnes.
• Farooqui, S. U. (2010). Encyclopedia of supply chain management: Volume I. Mumbai, India: Himalaya Books Pvt.
• Farooqui, S. U. (2010). Encyclopedia of supply chain management: Volume II. Mumbai, India: Himalaya Books Pvt.
• Farooqui, S. U. (2010). Encyclopedia of supply chain management: Volume III. Mumbai, India: Himalaya Books Pvt.
Course Library Guide
You are encouraged to refer to the resources in the BUS-FP3022 – Fundamentals of Supply Chain Management library guide to help direct your research.
Internet Resources
Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
• Malik, Y., Niemeyer, A., & Ruwadi, B. (2011). Building the supply chain of the future. McKinsey Quarterly. Retrieved from http://www.mckinseyquarterly.com/Building_the_supply_chain_of_the_future_2729
• Sustainable Supply Chain Foundation. (n.d.). Retrieved from http://www.sustainable-scf.org/
Answers
Dell’s Supply Chain
Dell is one of the leading computer-based multinationals based in the United States. The company was established in 1985 and has developed from a small firm to a global market leader in the computer hardware sector. The company leads in the marketing and distribution of computer hardware globally through an effective supply chain. Hence, one of the sources of success of the company is an effective supply chain strategy. While Dell has numerous positive features in its supply chain, the direct sales model is the most remarkable and a critical success factor. The company receives and processes orders directly from clients without involving intermediaries. The model’s success emanates from accessing customers directly to understand and address their needs and problems using its quality products. For example, the company has previously developed new products and services based on consumer preferences, which has made the brand unique compared to its global competitors. Though Dell has faced challenges, such as uncertainties, its supply chain model remains effective and informs its success.
Supply chain management involves managing the flow of products and services from the source to the final client. The management process includes all activities that change raw materials into finished products ready for consumption. Supply chain management supports the supply-side activities that add customer value and create an edge over competitors. An increase in globalization has made more demands on supply chain management with the supply of goods and services spanning across national boundaries. According to Blanchard (2010), an effective supply chain necessitates significant changes in the way businesses relate with customers and ensure they receive goods and services efficiently and conveniently. The global environment has increased demands on multinationals to streamline their operations and supply chain to improve the flow of goods and services. Regardless of challenges in the worldwide supply chain, some firms, such as Dell, can act as models to other firms to improve their supply chain management and enhance their services to customers through an adequate flow of goods.
The supply chain can help companies succeed in the global market, especially multinationals that source and supply their goods and services across national boundaries. Dell is a model of successful supply chain management through the direct sales model. The company eliminates numerous intermediaries to create strong relationships with customers by selling directly to its clients. Dell’s management suggests that while it has numerous critical success factors, such as technology, the decision to sell to customers directly is the most important initiative. The firm has managed to develop products and services according to customer expectations. Gray (2007) provides evidence of success in its supply chains, such as customizing its products based on customers’ information and specifications. Working directly with customers has created a successful global company that competes effectively with other computer hardware manufacturers. The supply chain includes listening to customers to understand what they want and how they want to be served.
Like other multinationals, Dell faces challenges, such as uncertainties due to the size of the supply chain. Uncertainties are common in supply chain management since sometimes unexpected events occur that could affect its effectiveness. Uncertainty arises when decision-makers in the supply chain are not exactly aware of what to do due to a lack of transparency. Uncertain and unpredictable events can affect operations and financial performance. Uncertainties can occur when a company fails to understand the market or customers, especially in the wider global environment. Dell has been effective in managing uncertainty in the supply chain by working closely with customers. The firm creates a continuous-optimization framework that establishes a transparent supply chain to address uncertainty (Blanchard, 2012). Working closely with customers helps the company to understand their needs and requirements to eradicate any uncertainties.
Dell’s decision to sell its products via retail outlets was unsuccessful since it removed customers from the equation. The distribution channel could reduce its supply chain activities, but it was ineffective since it distracted its direct connection and customers. Therefore, the company decided to refocus on customers by allowing them to order directly and specify the requirements. For instance, the management gives the manufacturing department specifications to design the exact product that the customer wants (Blanchard, 2012). As s result, the firm has a competitive advantage over others since it exists to meet customer needs and solve their problems. The firm has created strong relationships with its customers across the world.
Companies in the global environment can learn vital lessons from Dell to use models such as selling directly to customers. While firms can still use intermediaries, especially when operating globally, they should work closely with their customers to understand their needs. They should use the information to design their products and services to create a competitive advantage and add value to their business activities. The direct build-to-order sales model helps Dell in decision-making when creating products and marketing strategy. The management puts customers at the center of the supply chain activities since they design their products for consumers. Close relationships with customers is a core critical success factor in the global supply chain.
References
Blanchard, D. (2010). Supply chain management best practices. (2nd ed.). Hoboken, NJ: Wiley.
Blanchard, D. (2012). Dell taps into innovation to reach emerging markets. Industry Week/IW, 261(11), 45.
Gray, M. (2007). Revolving around the customer [supply chains customisation]. Manufacturing, 86(6), 28–31. doi:10.1049/me:20070603
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
