The combination of multi-tier inventory management, superlative transportation, and highly efficient use of IT Information Technologyand its wide network of warehouses are all geared towards aligning its SCM with its competitive strategy. The next aspect is related to its outsourcing of its inventory management. Amazon outsources the storage and distribution of products that are not frequently purchased nor ordered for immediate delivery as well as products where the costs of storing them exceed the marginal returns on their sales. On the other hand, Amazon stocks the frequently purchased and ordered items in its own warehouses so that it can be responsive to the customer needs as well as not compromise on the delivery times and the lead times.
Karan Girotra, University of Pennsylvania Abstract This dissertation is based on three essays that study operational strategies to manage environmental uncertainty. In essay 1, we examine the costs and benefits of different supply chain structures in managing multi-product demand uncertainty.
In particular we analyze the strategic performance of delayed differentiation and early differentiation in supply chains.
We demonstrate that the conventional wisdom arguing for delayed differentiation may be strategically unsound. In essay 2, we examine the role of strategies that mitigate the effects of product development uncertainty.
We create a multi-year data-set on product development pipelines and the financial performance of large pharmaceutical firms. We examine the effect of risk mitigating strategies, such as development of backup compounds on the financial performance of firms and find that these strategies lead to superior financial outcomes.
In essay 3, we examine the role of demand uncertainty on a multi-tier supply chain. We examine the structure of advanced purchase discounts that lead to efficient information transmission in the supply chain.
We characterize their benefits, costs and provide recommendations on administration of advance purchase discounts.Multi-tier supply chain risk management problem Risk management problem in a multi-tier supply chain network is an increasing area of interest for both the researchers and practitioners.
An end-to-end risk management approach in this regard requires all supply chain stakeholders working toward this goal.
Fig2 illustrates a basic model of a multi tier supply chain. Each level has its own importance and prominent influence over the chain thus making every level an integral part of the complex system. Fig2 is a sceptic of four level supply chain with centralised decision process.
Nov 14, · APICS is the association for supply chain management and the leading provider of research, education and certification programs that elevate supply chain excellence, Six Supply Chain Certification Trends to Watch in and Beyond.
The analysis identifies sectors that the company and supply chain should emphasize. It is actionable. The profit analysis to find large, profitable segments can be done by category, market, product, domestic/global region or other key targets for the business. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market.
The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. Real time visibility into suppliers at every tier was once considered impossible, but now it is vital to the success of market leaders.
With protectionist measures already coming into effect in the US, and with Europe and other nations soon to follow, collaboration with suppliers across all tiers is more important than ever.