Benefits Of A Supply Chain

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What is a supply chain? Well, a supply chain is a system in which a connection is made between everything together from services to products to meet customer satisfaction. “Supply Chain is an interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers.”[1] The related parties can be directly or indirectly related in keeping the customer requirements. [2] Some example of members of a supply chain is transportation, manufacturing, sales, and the customer. [2] The main goal of having a functional supply chain is to keep the customer happy.

Supply Chains are used in services and manufacturing. Services that incorporate a supply chain are used for providing and driving the need to support the elements of the services it delivers. [1] Manufacturing utilizes a supply chain in order to control inventory and production flow. [1] The performance of a supply chain is measured through the following ways:

• Inventory Measures
• Financial Measures o Total Revenue o Costs of goods Sold o Operating Expenses o Cash Flow o Working Capital o Inventory Placement o Mass Customization

Inventory measurement is a method that controls the inventory count of units, volume, and weight. [1] Supply chain is measured financially because it can make a huge financial impact on the company in question. [1] These measurements are taken because the ultimate goal is to make money. Without having methods in place to account for these measurements, there is no sure way that the company is benefiting and making money. A supply chain is a dynamic system and there is a constant flow of money, products, and information. [2] An important aspect of Dell’s company and their supply chain is customer satisfac...

... middle of paper ... interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers.”[1] Dell’s supply chain is an interesting case study in supply chain operations because of its unique structure. Instead having a traditional brick and mortar store, dell sells most of its product through the internet. Selling most of their computers through the internet means that they do not have to have finished product. Because they do not have finished product rely to sell to the customer Dell can offer computers with near unlimited configurations. [11] This gives Dell advantages over their competition. Additionally, their unique supply chain allows them to quell the bullwhip effect, which typically plagues traditional supply chains. As the understanding of supply chain operations grow, Dell needs to be studied and understood further.

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