Question.623 - In your initial post, discuss any service (e.g., Starbucks, McDonalds, Amazon) or manufacturing company (e.g., Boeing, Apple, Dell) that you believe utilizes integrated supply chain management. Compare its operations to a company that you believe uses more traditional supply chain practices.
Answer Below:
One of the companies that is highly utilizing integrated supply chain management is Amazon. The major benefit of using integrated supply chain management is that the company has been involved with e-commerce supply process. Due to the advancement of technology, the company has combined both traditional and integrated supply chain process where warehouse has been has been automated due to which the delivery process has become more rapid and can be done within one day and two hours delivery with the help of Amazon Prime. Amazon is focusing its production more through in-house process than outsourcing. Moreover, in 2019, Amazon got access to 100,000 electric vehicles for delivery which is the most important competitive advantage in today’s business marketing and in future, the company might reach to a stage where they might use drone-based deliveries to the customers. If we compare the operation of integrated supply chain management with traditional supply chain management, we could analyse the difference and makes us realize the importance of integrated SCM. Traditional SCM focuses more on production level and profitability while integrated SCM is more customer-centric. Integrated SCM is open for any company to start partnership while traditional SCM is limited with few companies. In integrated SCM, the operation is done in such a manner that the finished product can also be improved and valued as per the needs and desire of customer while for traditional SCM, there is no strategy to improvise the finished product after its production. Moreover, integrated SCM is faster in producing goods and services and also in delivering with proper implementation of logistic system which traditional SCM lacks. References Britt, H. (2020). The 12 Best Supply Chain Companies of 2020. Thomasnet.com. Retrieved from https://www.thomasnet.com/insights/best-supply-chain-companies/.More Articles From Operation Management
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