SCMA ASSIGNMENTS
ASSIGNMENT – I
Case study
Case Study: Wal-Mart's Keys to Successful Supply Chain Management
As the following case study demonstrates, a successful supply chain management strategy can lead to
lower product costs and highly competitive pricing for the consumer. Over the past ten years, Wal-Mart
has become the world's largest and arguably most powerful retailer with the highest sales per square
foot, inventory turnover, and operating profit of any discount retailer. Wal-Mart owes its transition from
regional retailer to global powerhouse largely to changes in and effective management of its supply
chain.
Wal-Mart's efficiency in supply chain management was due to two key factors namely automated
distribution center and the computerized inventory system. This brought in minimizing a lot of time the
later not only reduced the checking out time but also recorded the transaction which is much needed to
know envisage demand. Demand forecast is a constant issue which could be a threat when not handled
properly. This is due to the fact that demand prediction is always inaccurate. Aggregation would be a
remedy for this unpredictable demand.
Wal-Mart's focus has always been to sell goods at a lower price to the customers. They ensured direct
purchase form the companies bypassing the intermediaries. This by passing is one of the ways to reduce
cost. Wal-Mart preferred small vendors to the big players however the vendor who provides the best
price qualifies and gets the deal. This applies to the giants like P& G as well. Their practice these days
had been choosing few vendors and they literally negotiate the best price the one that comes up with
the best price qualifies. This does not blindly work with the vendors for improving its supply chain
efficiency.
Wal-Mart with its power distribution system made quite innovative changes like reducing paper work,
reduced its lead time drastically, used bar codes to bill which recorded inventory levels and the access to
the stock levels served as the valuable data for management. The movements of products are
systematic and strategically aliened in a way that it reduces the most valuable time and cost and results
in efficiency. Wal-Mart had a very effective rather responsive and flexible distribution system to
transport goods from docks to stores. It educated the drives with the ethics and code of conduct which
pictures their supply chain responsibility
The key to achieving this logistics tech make the way the company replenishes inventory the center
piece of its strategy, which relied on a Logistics, technique known as cross docking Cross docking story
techcenter pich s used by Wal-Mart in their SCM. Using cross docking, products are routed frodocking is
one lethal weaponthouses, where they are then shipped to stores without sitting for long periods of
time in inventory. This strategy reduced Walmart's costs significantly and they passed those savings on
to their customers with highly competitive pricing. Wal-Mart then concentrated on developing a more
highly structured and advanced supply chain management strategy to exploit and enhance this
competitive advantage.
Questions:
1. Enlist The Components Of Supply Chain Management (SCM) Of Wal-Mart?
2. Explain Wal-Mart’s Method of Managing the Supply Chain?
3. What Are The Benefits Of Efficient Supply Chain Management?
ASSIGNMENT – II
1. Define Supply Chain Management and explain its importance in modern business organizations?
2. What is Strategic Fit in Supply Chain Management? Discuss its importance with examples
ASSIGNMENT – III
1. Explain the concept of Supply Chain Analysis and its significance in decision-making?
2. What is Advanced Planning in SCM? Explain its objectives and benefits?
ASSIGNMENT – IV
CASE STUDY
The world's leading aerospace company, Boeing is the largest manufacturer of commercial jet airliners
and military air craft combined. Headquartered in Chicago, Boeing operates in 70 countries with
culturally diverse workforce Boeing has an arch rival in the form of its European counterpart Airbus.
Airbus is the largest civil airliner in service. Airbus also has expanded into military transport aircraft
sector. Every strategic move of these two giants is followed closely and counter-measures are swiftly
planned to capture the market share of each other. When Airbus started its ambitious super jumbo
A380 project, Boeing quickly followed suit with its dream liner 787. Airbus, by virtue of its multi-country
lineage in EADS, has its manufacturing process scattered across many European nations including the
UK, France and Germany. Its final assembly plant is located at France, where huge parts are brought
through several transportation modes for assembling into an aircraft, This approach to manufacturing
has been criticized by experts, who cited this as one of the reasons for the A380 project delays and cost
over runs. Ironically, Boeing tried to adapt a similar approach to manufacturing the 787. It experimented
with radial outsourcing with major parts of the plane outsourced to companies in Canada, Australia,
Korea, Japan and Europe Comparatively, Boeing is into higher percentage of outsourcing for its
engineering and design work. It is debatable as to whether this is the primarily the reason for the
numerous delays and hefty cost overruns the 787 project has witnessed over the past several years. On
several occasions, Boeing admitted design flaws, leading to delays. Boeing's customers are increasingly
cautious of their delayed delivery schedules of 787. Some reports say that the first delivery of its new
787 aircraft would slip a well into the mid of the eventual first flight in December 2009. The report also
indicates that the company officials opine that they over reached on the new manufacturing method
used with 787, but they remain committed to the outsourcing model. However, further delays have
been indicated and the increasing competition in cashing on the situation in a big way, with Airbus
receiving orders from several Airlines who cancelled the 787 orders in favor of its A380.
Questions:
1. The CEO of Boeing has decided to take an unbiased opinion of an external consultant to critically
analyze the whole production model adapted in 787. If you are requested by Boeing as external
consultant to submit a preliminary report, critically examine the outsourcing model of 787.
ii. Suggest remedial measures in the Boeing's supply chain so as to avoid failure like 787 in future.