BU7763 Strategic Supply Chain Management Assignment Sample
Introduction
Supply chain management is one of the key aspects of the business and it contributes to become critical factor for long term progress of the business. Supply chain management helps in the evolution raw material or the goods into finished products or the products that are sold to the consumers. There are various processes and operations that occur in the supply chain management to complete the product and make it available in the market for sales.
The various business operation that needs the assistance of supply chain management are purchasing, logistics, information technology. The finances, materials, manufacturing processes, wholesalers, retailers and consumers tend to affect the supply chain management in the organizations.
The goals of applying an efficient and effective supply chain management in the organizations are reducing the costs, improvising the efficiency in operations and satisfying the demands of the customers.
The two organizations from two different sectors that would be used in this analysis are:
- Amazon
- Tesco
Supply Chain management at Amazon:
The supply chain at Amazon is one of the largest and most efficient across the globe. Jeff Bezos have been able to evaluate each and every piece of the supply chain management and place the efficiency in every of those pieces in order maintain the parameter.
The two processes that Amazon applies in its supply chain management for the sellers to maximise the supply of the products are as follows:
- Fulfilment by Amazon (FBA)- The sellers that prefer the hands-on approach of storing, packing and shipping the products orders, use the Fulfilment by Amazon process.
- Fulfilment by Merchant (FBM)- The sellers that want to manage the storing, packing and shipping of products themselves, use this process (Shevchenko, 2020).http://BU7763 Strategic Supply Chain Management Assignment Sample
The various elements of the supply chain that makes it versatile with the huge number of customers that the company manages are as follows:
- 1. Warehousing: The total number of warehouses that the company currently operates is 175 across the globe. The warehouse becomes one of the most essential elements since it is important to create places for storing the products close to the customers for the easy availability and saving of time as well as costs. Amazon is competent in using the artificial intelligence for its operations as well as the use of robotics to conduct processes in the warehouse (Sureddy & Yallamula, 2020).http://BU7763 Strategic Supply Chain Management Assignment Sample
- Delivery: Delivering products on time is one of the most important focus points of the Amazon business structure and its core qualities. This is the reason that Amazon provides its customers with various delivery options, some of them are Prime, Amazon Key, No-rush shipping, Hub & Locker Delivery etc.
These diverse options provide the customer with convenience and comfort to make orders and avail the products as and when they require (Cohen, 2018).http://BU7763 Strategic Supply Chain Management Assignment Sample
- Technology: The growth in technological advancements has been a very important addition to the business infrastructure and all its elements. Amazon has always embraced technology in all its operations in order to achieve accuracy and to save the time and costs as well.
The processes are all considered with the focus on optimization. The automation and the use of robots have become a trend in Amazon. In addition to this, Amazon has also been testing the Amazon Scout Robot Delivery as well. Also, the company is focus on the Air drone delivery which will enhance the mechanisms of the company is so many diverse manners (Ardito, et al., 2019).http://BU7763 Strategic Supply Chain Management Assignment Sample
- Manufacturing: Manufacturing and selling its own brand was one of the best decisions that Amazon has taken to increase the authenticity of the products and also to increase its revenues as well. The costs of maintaining the sellers and the transport also reduces by adding the in-house manufacturing process.
- Pricing: the supply chain management is highly dependent on the pricing strategy of the company. The impeccable supply chain also enables the company to integrate its customers into different categories in order to enable the best system of delivering products and also reducing the costs at the same time.
- Global Reach of Amazon: using the international platform to perform and conduct business is the technique that Amazon has used to enhance its supply chain and increase its stakeholders as well. The global reach and the intense growth have given Amazon the direction of growth in its supply chain management (Min, et al., 2019).http://BU7763 Strategic Supply Chain Management Assignment Sample
SWOT Analysis of Amazon (Supply Chain Management):
| Strengths | Weaknesses | |
| · The first mover advantages have provided the company with advancements in the market. The enhancement in technology and operations management has worked in favour of the company.
· Successful goodwill in market: Amazon has been known for its impeccable track record in the market in terms of catering to the needs of the customers and providing them with high amount of diversity in delivery and technology options. · Quality and diversity of products: In efficiently managing the supply chain it is important that the consumers are given the best quality of products through sorting it from the various dealers. |
· Lack of technology in all processes: Although the warehousing ahs been enhanced through the application of the technology, the front end of the business still lacks the growth in technology.
· Lack of diversity in workforce: Amazon has been growing more in terms of diversity and lacking in a few aspects in terms of being an international power. · Customer dissatisfaction: the company has faced customer dissatisfaction issues in terms of quality mostly, although the demands are being catered to. |
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| Opportunities | Threats | |
| · Use of E-commerce and social media: This is one of the biggest opportunities that Amazon can use for its benefits. The marketing of products would become easier and viable at the same time.
· Developing through technology: the use of artificial intelligence in all the operations of the business infrastructure would provide enhance and speed up the process without the dependence on the employees. · Exploring the international market: To expand the global reach through supply chain management, the company will have to strategize in making the right investment through the limited budget challenge it is facing. |
· The increasing Costs in economies: There are regulations that each economy is levying to enhance the environment regulations. The packaging costs and the logistics costs could be increasing due o this for Amazon supply chain management.
· Increasing bargaining power of the customers is one of the key threats that Amazon is currently facing. This is due to the growth in the competitors in the market. |
(Majed, et al., 2018)
Supply chain management at Tesco:
Tesco is known to be as one of the biggest multinational retailers of grocery and merchandise. Also, Tesco is a British company that is rated as the third largest in the world. Tesco’s supply chain is designed in order to achieve sustainability in its operations and sale through robust processes.
Tesco believes in maintaining excellence at management and operations. The retailer company is also involved in enhancing the customer value with all their elements in compliance in context of supply chain management.
The procedure development is the focal point of the company to improvise its supply chain management and enhance the customer loyalty for the company as well (Sparks, 2019).http://BU7763 Strategic Supply Chain Management Assignment Sample The elements that contribute to becoming the vitals of the supply chain management at Tesco are as follows:
- Customer satisfaction: The company has prioritized its customers which is the basic lesson for the success of any business enterprise or organization. Tesco has provided the customers with various options to consider shopping products from.
Tesco has also given its customer the club card which notifies the customer with various offers and discounts and also helps the company in assorting the customers based on their needs and their demands for the products.
- Relationship with the suppliers: The Company has not only enhanced its operations and processes towards the customers, but have also recognized the importance of satisfied suppliers to increase the efficiency of the supply chain management. Electronic Data Interchange is the tool that Supply chain management at Tesco employs for the communication with the suppliers.
In addition to this, the company also invests in educating the suppliers through experts in order to attain the procedure development. Also, the supplier queries or complaints are attended by responsible and well-trained employees to provide them with instant resolutions (Grimmer, 2018).http://BU7763 Strategic Supply Chain Management Assignment Sample
- Leadership through Technology: The Company has excelled in its operations through the use of latest technology and the assistance of information technology in the most efficient manner. The technology is also to consider ease for the customer in their process of shopping and interacting with the company. The payment processes have also become technology dependent in order to provide better schemes and strategies to the customers (Alexander, 2020).http://BU7763 Strategic Supply Chain Management Assignment Sample
- Strategic planning and techniques: These techniques are very important for the process of efficiently conducting the supply chain management at Tesco. The business must be ready for any contingencies and also to invest the profit or the revenues in the best places in context of the supply chain management for reducing the unnecessary costs and provide better competitive advantage to the company. Tesco has been able to align its mission and vision with all its stakeholders, including its suppliers and its employees.
- Theories applied in Supply Chain Management: The Company has been very educative to the customer in giving them awareness about the healthy eating habits. Along with this, the company has been involved in strategizing to sell the maximum products with optimum pricing strategy for the customers to find affordable prices. The suppliers of Tesco have also found it profitable in supplying products to the company.
- Improving the quality of the Products as well as services: To enhance the supply chain management which comprises of various business elements that range from procurement of raw materials to availing the products to the customers through implementing the trendiest as well as optimum changes in the process. Of these, the most impactful change would be to improvising the quality of the products and the services. This will not only satisfy the customer but will also provide improvement parameters to the suppliers as well (Gandhi, et al., 2017).http://BU7763 Strategic Supply Chain Management Assignment Sample
SWOT analysis of Tesco (Supply Chain management)
| Strengths | Weaknesses | |
| · Leading Market Share: In Britain. Tesco is dominating the market presence of the other companies and is prevalent due to it being recognized as the biggest retailers in the United Kingdom
· The increase diversity of products and market: Tesco has been able to establish stores in various markets and this is also because of the available of high number of products. This eventually is benefiting the supply chain in the best possible ways. · The loyalty schemes of Tesco have been elevating in the market. This is in return enhancing the image of the brand in supplier market as well as increasing the customer base. |
· The global expansion of Tesco has reduced its focus on the core business and this is affecting the business in the local market.
· The failure of the US and the Japanese market has impacted the supply chain in an adverse manner since the company is not being able to process in the international market through its operational strategies. · The different controversies that Tesco has been a part of has been affecting the business and creating grounds pf weakness for the business and its supply chain as well |
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| Opportunities | Threats | |
| · Jack’s Business: The company has recently launched a new discount store named Jack’s which is provided high opportunities of growth.
· Emerging Market: There is significant growth of market and the application of e-commerce has opened various doors for the supply chain infrastructure. In addition to this, the suppliers also find it profitable to access business in emerging markets through online platforms. · Strategic alliances with various brands are also increasing its suppliers and its customers. This creates a potential plan for the future aspects of the supply chain efficiency in the business. |
· The legalities and the controversies that the company has been facing is one of the key threats to the business and its supply chain. Getting into legalities and laws enforcements attract negative publicity for the company and disrupts the supply chain management.
· Competition- Tesco’s biggest threat of the growth of competition in the market through the evolution of technological advancements and the online business module. Walmart is one of the key competitors for Tesco that could supress its supply chain management as well. |
(Alkhatib)
Conclusion
Both the businesses belong to two different sector and also the business module is different in many ways. But the efforts to constrict and efficient and impeccable supply chain through operations management as well as strategic planning is the key to their success.
There are definitely contingencies along the way that is reflected in the SWOT analysis but both the businesses have been potentially facing them through effective management.
References
Alkhatib, B. Business Strategy-A case Study of TESCO.
Alexander, I. N. (2020). The influence of technological innovations on organization’s competitive advantage: Case study on Irish food retail company (Tesco) (Doctoral dissertation, Dublin, National College of Ireland).
Ardito, L., Petruzzelli, A. M., Panniello, U., & Garavelli, A. C. (2019). Towards Industry 4.0: Mapping digital technologies for supply chain management-marketing integration. Business Process Management Journal.
Cohen, R. (2018). How Amazon’s delivery logistics redefined retail supply chains. Journal of Supply Chain Management, Logistics and Procurement, 1(1), 75-86.
Gandhi, A. V., Shaikh, A., & Sheorey, P. A. (2017). Impact of supply chain management practices on firm performance. International Journal of Retail & Distribution Management.
Grimmer, L. (2018). The diminished stakeholder: Examining the relationship between suppliers and supermarkets in the Australian grocery industry. Journal of Consumer Behaviour, 17(1), e13-e20.
Majed, S. Z., Nuraddin, S. H., & Hama, S. V. S. (2018). Analyzing the amazon success strategies. Journal of process management. New Technologies, 6(4), 65-69.
Min, S., Zacharia, Z. G., & Smith, C. D. (2019). Defining supply chain management: in the past, present, and future. Journal of Business Logistics, 40(1), 44-55.
Sparks, L. (2019). Tesco: how supply chain strategy supports retail success. The Business & Management Collection.
Shevchenko, E. (2020). Amazon as a global sales channel for small and medium size Finnish companies.
Sureddy, M. R., & Yallamula, P. (2020). Approach to help choose right data warehousing tool for an enterprise. International Journal of Advance Research, Ideas and Innovations in Technology, 6(4).
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