Question.2335 - The module review questions cover Chapters 1 and 2 of the Monczka textbook. In a document, provide responses to the following questions: What is your understanding of a value chain and its relationship with the supply chain? Select a big-box retailer and explain/depict its supply chain, value chain, and extended value chain. Explain electronic procurement and just-in-time purchasing. Also, briefly explain how electronic procurement tools can benefit just-in-time purchasing. Discuss the differences and key objectives for the following: involving purchasing after completion of the new product development process involving purchasing throughout the new product development process Submission Save your assignment using a naming convention that includes your first and last name and the activity number (or description). Do not add punctuation or special characters. Upload your document to this assignment. Your paper will automatically be evaluated through Turnitin when you submit your assignment in this activity. Turnitin is a service that checks your work for improper citation or potential plagiarism by comparing it against a database of web pages, student papers, and articles from academic books and publications. Ensure that your work is entirely your own and that you have not plagiarized any material!
Answer Below:
1. A value chain is a broad framework that includes all the actions a business takes to develop, manufacture, market, distribute, and provide customer support for its goods and services (Kano et al., 2020). It entails dissecting every stage of the procedure to see where value is created, and expenses are incurred. On the other hand, the network of interconnected entities, processes, and resources known as the supply chain is in charge of transferring goods or services from suppliers to customers. It depicts the actual movement of goods and the associated logistical processes. As an example of these concepts, think of the big-box retailer Walmart. Suppliers offer various products in Walmart's supply chain, which are then shipped to distribution centers. These facilities allocate products to specific stores and effectively manage inventories. Customers then buy these things from the stores, which comprise the bulk of Walmart's supply chain (Schiele, 2010). Walmart's value chain entails sourcing supplies, production (if applicable), distribution, marketing, sales, and post-purchase service. Its capacity to optimize these phases influences Walmart's value proposition, resulting in cost savings and increased productivity. Additionally, Walmart's extended value chain includes partnerships for co-branded products, sustainable sourcing methods, and waste reduction initiatives, extending the value delivered beyond the usual limits. Finally, the supply chain and value chain are closely related, with the latter covering more extensive logistical operations and the former concentrating on value-creation activities. Walmart's value chain optimizes processes and extends into strategic alliances, strengthening its competitive edge and consumer value. Walmart's supply network guarantees product availability (Luzzini et al., 2015). 3 2. Modern methods for using digital technology to manage procurement procedures include electronic procurement (also known as "e-procurement"). It entails using electronic platforms, such as the Internet and electronic data interchange (EDI), to expedite and automate the several steps of procurement, such as supplier selection, ordering, invoicing, and payment. Paperwork is reduced, procurement operations are more transparent, and effective communication between suppliers and customers is made possible via e-procurement (Yu et al., 2020). On the other side, just-in-time (JIT) purchasing reduces inventory holding costs by acquiring and receiving goods only as needed for production or customer demand. This method eliminates the requirement for big inventories, which lowers storage expenses and the chance of obsolescence (Taghipour et al., 2020). Just-in-time purchasing can greatly benefit from electronic procurement tools since they give real-time visibility into supply chain processes. By using these technologies, procurement teams can accurately estimate demand and match their purchasing decisions to actual consumption trends. With real-time inventory and supplier performance monitoring provided by e- procurement, buyers can reduce the risk of stockouts and overstock situations by placing orders for supplies at the precise time needed. Furthermore, computerized procurement facilitates swift modifications to demands, delivery timelines, and quantity requirements by improving communication between buyers and suppliers. For JIT purchasing, when responsiveness to shifting market conditions or unanticipated interruptions is critical, this agility is essential. E- procurement systems also encourage effective teamwork between cross-functional groups, including logistics, production, and procurement, allowing for greater activity synchronization and coordination in support of JIT concepts (Kano et al., 2020). 4 3. (I) involving purchasing after the completion of the new product development process Including purchasing after the new product development process is finished alludes to incorporating procurement tasks after the product design and development phases are completed. To manufacture and promote the product, the main emphasis is locating the appropriate supplies, parts, and services. This strategy may result in fewer possibilities for cost optimization and supplier selection, which could lead to the loss of opportunities to use procurement's strategic input during the crucial early phases of product development. After completion, the main goals of purchasing are to manage manufacturing costs, get timely supply, and maintain effective logistics. Nevertheless, the potential for significant cost reductions and innovation may be attained when procurement is integrated across the entire product development process may be lacking (Aloini et al., 2019). (ii) involving purchasing throughout the new product development process Involving purchasing early in the new product development process includes incorporating procurement operations from the initial concept stage through the finished product launch. With this strategy, procurement knowledge is purposefully included in every level of design choices, supplier selection, and cost considerations. The main goals are to optimize the sourcing of materials, encourage innovation through supplier engagement, and achieve cost savings through early negotiation and volume agreements. Supply chain problems can be anticipated with this method, and alternatives for products or providers can be investigated. By purchasing early on, businesses can better match product design to supply chain capabilities, cut lead times, and 5 increase overall product quality, ultimately resulting in more competitive pricing and customer satisfaction (Handfield and Lawson, 2007). References Aloini, D., Dulmin, R., Mininno, V. and Zerbino, P., 2019. Leveraging procurement-related knowledge through a fuzzy-based DSS: a refinement of purchasing portfolio models. Journal of Knowledge Management, 23(6), pp.1077-1104. Handfield, R.B. and Lawson, B., 2007. Integrating suppliers into new product development. Research-Technology Management, 50(5), pp.44-51. Kano, L., Tsang, E.W. and Yeung, H.W.C., 2020. Global value chains: A review of the multi- disciplinary literature. Journal of international business studies, 51, pp.577-622. Luzzini, D., Amann, M., Caniato, F., Essig, M. and Ronchi, S., 2015. The path of innovation: purchasing and supplier involvement in new product development. Industrial Marketing Management, 47, pp.109-120. Schiele, H., 2010. Early supplier integration: the dual role of purchasing in new product development. R&d Management, 40(2), pp.138-153. Taghipour, A., Hoang, P. and Cao, X., 2020. Just in time/lean purchasing approach: an investigation for research and applications. Journal of Advanced Management Science, 8(2). Yu, A.T.W., Yevu, S.K. and Nani, G., 2020. Towards an integration framework for promoting electronic and sustainable procurement in the construction industry: A systematic literature review. Journal of Cleaner Production, 250, p.119493.More Articles From Management
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