Why should a firm like dell take into account total supply chain profitability when making decisions

Comment Segmentation lets companies boost profitability by tailoring their supply chain strategy to each customer and product in their portfolio. Here are 10 key practices that will ensure success. In the s Dell revolutionized both the computer industry and supply chain management with its direct-to-consumer business model. For the past several years, however, the company has been transforming its supply chain into a multichannel, segmented model, with different policies for serving consumers, corporate customers, distributors, and retailers.

Why should a firm like dell take into account total supply chain profitability when making decisions

Sign up Log in Full file at https: Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and the different flows involved. As the order is filled, the retailer will move dollars back up the supply chain.

Finally or initially, depending on your perspective the manufacturer moves orders information and dollars towards suppliers in exchange for material flow into their production processes. Why should a firm such as Dell take into account total supply chain profitability when making decisions?

Dell realizes that their ultimate success lies with the success of their supply chain and its ability to generate supply chain surplus. Just as a physical chain is only as strong as its weakest link, the supply chain can be successful only if all members cooperate and focus on a global optimum rather than many local optima.

What are some strategic planning and operational decisions that must be made by an apparel retailer such as Gap? Full file at https: The supply chain must also settle on communication channels and frequencies.

Supply chain planning takes the strategic decisions as a given and seeks to exploit efficiencies in the chain to maximize supply chain surplus. The entire chain should collaborate in forecasting and planning production to achieve a global optimum.

The forecasts should take into account planned promotions and known seasonal fluctuations in demand. The operational decision takes the plans as a given and makes day-to-day decisions to process customer orders, allocate resources to certain customers, trigger orders from supply chain members, and deliver product.

Consider the supply chain involved when a customer purchases a book at a bookstore. All supply chain processes can be broken down into four process cycles that connect the five stages of the supply chain: The customer order cycle connects the customer with the retailer; this connection is made as the book, perhaps Supply Chain Management by Chopra and Meindl, is selected and paid for by the customer.

The manufacturing cycle connects the distributor and the manufacturer. As demand for the book is realized and distributors empty their warehouses, they signal the manufacturer to print another million copies to fill their empty warehouses.

Finally, the procurement cycle connects the manufacturer and the supplier. The manufacturer requires raw material inputs of paper, ink, etc.

The customer order pulls the book from the bookstore shelf but the initial production of the book was triggered by a build order that moved materials along the supply chain to the retail outlet. Consider the supply chain involved whena customer orders a book from Amazon. Today, Amazon has six warehouses where it stocks an inventory of items it is confident that will sell.

Processes in the pull phase are the order fulfillment, shipping, customer returns, and customer billing. Processes in the push phase are production, stock replenishments, shipping, and payment.

In what way do supply chain flows affect the success or failure of a firm such as Amazon? List two supply chain decisions that have a significant impact on supply chain profitability. The success or failure of a company like Amazon is decided by the effective function of its supply chain.

The flow of products from publishers to distributors to customers must be rapid and reliable in order to satisfy customers. The flow of information back through the supply chain allows all members to coordinate efforts.

The flow of money allows all supply chain members to maintain operations.

Why should a firm like dell take into account total supply chain profitability when making decisions

Supply chain profitability is influenced by sourcing, promotion, and fulfillment decisions.Why should a firm like Dell take into account total supply chain profitability when making decisions?

Dell realizes that their ultimate success lies with the success of their supply chain and its ability to generate supply chain surplus. Finally (or initially, depending on your perspective) the manufacturer moves orders (information) and dollars towards suppliers in exchange for material flow into their production processes.

2 Why should a firm like Dell take into account total supply chain profitability when making decisions?90%(10). 2- Why should a firm like Dell take into account total supply chain profitability when making decisions? (Chapter 1) 3- What are the major sources of uncertainty that can affect the value of supply chain decisions?

(Chapter 6) 4- Give arguments to support . 2 Why should a firm like Dell take into account total supply chain profitability when making decisions?

Their success rely on competitive advantage. If Dell was to view supply chain operations as a zero sum game, they would lose their competitive edge as their suppliers’ businesses struggled. hi pfa complete solution for the given assignment.

This paper contain answer of the two questions on supply chain management, which are as follow; Why should a firm such as DELL take into account total supply chain profitability when making decisions? Why should a firm like Dell take into account total supply chain profitability when making decisions?

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