Subject: Research Methods and Skills

Topic: E Supply Chain

E Supply Chain

IntroductionLogistics Defined:

Logistics is that part of supply chain process that plans, implements, and control the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer's requirements.What is Supply Chain Management?

An innovative and integrated set of business processes which is customer demand-driven. Focuses on reducing the seams/obstacles in the supply chain to move more goods faster and exactly when they're needed. Seeks continuous improvements in both product quality and cost control. Views the business enterprise as a set of interdependent activities operating with precision as one entity

Maximizes automation throughout the supply chain Leverages on the core competencies of others (internal & external) Continually benchmarks on best business practices Is flexible with business changes Always focuses on exceeding the expectations of customers and outperforming competitors worldwide. (A global competitive advantage September, 2001)Problem Discussed

The case of the company we are going to consider is one of the leading company of the industry which suffered a failure due to its supply chain management strategy which failed to match the needs of 2001's unstable economic environment which are:2001's unstable economic environment increased troubled company's susceptibility to loss from a failure to upgrade their supply chains when times were better. Below these same precarious conditions galvanized the company to build capabilities that increase customer satisfaction and market share.

With the Internet bust, an economic slowdown, and the terrorist strikes, 2001 was a sobering year. Not surprisingly, many companies responded by scaling back investments and focusing more tightly on cost and efficiency metrics. Nor was it surprising that many of those companies lost ground as a result. That's because, in a weak economy, it's more important than ever to be aggressive—to build capabilities that boost customer satisfaction, raise customer-switching costs, and enhance market share. It's survival of the fittest: In hard times, the strong lay claim to new territory and prey upon weaker competitors—they move forward, not backward. In the business world, great companies take advantage of a challenging economic environment by increasing customer intimacy, improving product quality, and decreasing time-to-market, identifying and offering more value-added services, and reducing overall costs. They also focus on solutions that are critical to their long-term customer strategy and operating model—not just short-term fallback positions with only stand-alone merit.

Despite an increase in the number of customer channels and SKUs, Scholastic's emphasis on supply chain improvements has helped produce both cost savings and an improved ability to meet customer demands. In both good and bad times, the best companies rigorously identify their most valuable customers, build supply chain capabilities around those customers, continuously emphasize efficiency and flexibility, and integrate leading-edge technologies. For these reasons, their products are more customized, lower priced, and are delivered more quickly.

Capture The Right Customers

A good business model begins with the careful selection of those customer channels and accounts that best leverage a company's ...