Supply Chain Analysis
Supply Chain Analysis 2supply Chain Analysis5supply Chain Analysisstr
Supply Chain Analysis2supply Chain Analysis5supply Chain Analysisstr
SUPPLY CHAIN ANALYSIS 2 SUPPLY CHAIN ANALYSIS 5 Supply Chain Analysis Strategic Supply Chain Management Supply Chain Analysis For AutoZone’s Supply chain to be successful, the company must understand all the components of it. That will go a long way when implanting the strategies and concept into the chain. Distribution is the most crucial factor in the supply chain, it determines how and when the product to get the customers. Flourishing Chain will utilize every factor that impacts its distribution channel and exploits all the technology to make the distribution more active and proficient in allowing customers to acquire their parts at an opportune moment. Over the years role of the supply chain has been altered.
The distribution has switched from shipping from one focal point to another, now technology has shortened the process that will ship directly from the manufacturer to the customer that will tie into the distribution channels. Though distribution is costly, a person would think all the risk will be eliminated. Contrarily to what people may think, distribution has many risks it must account. When the product is unloaded onto the truck, it’s the trucker sole responsibility to ensure the customer receives their product. Distribution initially starts at the beginning when it is transporting the raw material from the supplier to the manufacturer.
The entire concept of the distribution network focus on two concept theories, first theories describes a vague description of the operation, the second concept does a complete overhaul of defining the theory. Inside the second theory, it examines the locations, capacity, capability, and how much demand they will receive. AutoZone uses an indirect form in their distribution channel, all things considered, they are a retailer. If AutoZone was a wholesaler, a direct form would apply. Arguably, the indirect application will have several influences that may it, such as response time and product availability.
Customers select certain repair shop based on three factors, cost, quality, and speed. So, in turn, they select auto parts retailers that can get them their part faster and a better price. Therefore, if AutoZone cannot meet the response time, they possible can lose a sale. Product availability is something AutoZone can’t control, resulting from the type of business they formed. a retailer and not the supplier. They can only predict the demand, but if they miscalculate inaccurately they can have too much inventory or too less, either way, its creating a loss.
They can implement tracking software that the customer is able to use. The software will be able to give real-tracking information of the purchased product. It gives an update on each stage of their shipment. It will reflect any delays in their shipment, they will allow the customers to either continue or stop the order. This applies to inventory, especially online purchases, it should able to illustrate how many parts in inventory.
This provides assurances to the customers that the actual part is in stock. Knowing where the part is in the supply chain is the benefit the organization, it determines how they can they can plan around the receipt of the part. Implement the new software in the retail system will take about a month, the biggest issue is its consuming too much time by training the retail workers how to navigate through the system and basic familiarity with the new upgrades. Unrolling the new program in the retail stores will have a slow start. Regional orientation will be scheduled, so all the store and district managers will in attendance, what they learn from the meeting illustrate it in their stores.
The inventory tracking software is self-operating, the company will update their online website. The turnaround time on implementing the software is a couple days, worst case scenario. Delivery is paramount method to measure how the AutoZone supply chain productivity. The improvements were not based on labor, meaning it was not required to hire more personnel to improve the supply chain. It was a technology upgrade to mend the chain.
If the customers can track the product through the flow in the supply chain that will eliminate not knowing where to when they will receive the product. The second improvement provides inventory transparency to the customers, they won’t have to lose time figuring what they have in stock. It will reduce the number of stockouts once it’s the stock reaches its minimum, the replenish cycle can begin. Therefore, the number of deliveries will increase, the customer is finding it very useful and utilizing to plan for their repair on the damaged vehicles. Deliveries are parallel to increase in sales, more parts being delivered, means more parts being sold.
The role of the distribution is the core of the supply chain, without distribution supplies will not get delivered to the manufacturer or finish parts can’t get to the customers. It is also the main area where the supply chain can affect the most. It also has the highest risk factor, resulting from dealing with mother nature how unpredictable it can be. Every company has room for improvement if modern technology is constantly being created, new options will occur. Supply chain doesn’t have a single measure of productivity as far as how much profit they generate, it’s based on other aspects, deliveries, cost, forecast accuracy, quality, and stockouts.
Deliveries are most the prevalent to AutoZone supply chain success. Reference Theinnovationenterprisecom. (2018). Theinnovationenterprisecom . Retrieved 16 February, 2018, from Simplicablecom. (2018). Simplicable .
Retrieved 16 February, 2018, from management Teaching Internal Control through Active Learning EXHIBIT 1a Student Preparation Instructions for In-class Team-based Competition Student Instructions: 1. Read Chapter on Internal Control and become familiar with the Components of Internal Control that can be separated into the following categories below. 1. Establish clear lines of authority and responsibility 2. Segregation of duties (Recordkeeping/Custody/Authorization) 3.
Hire Competent personnel 4. Maintain adequate records (including control numbers on documents) 5. Develop plans, budgets, and a system of independent review 6. Provide physical and electronic controls 2. Think about your work experience(s).
“Think evil Answer the question…†How could I steal from my companyâ€. If it is EASY to steal from your company , think about the following questions. · Why is it easy to steal from your company? · What is the weakness in the internal control system? · What is the internal control principle that is weak? If it is DIFFICULT to steal from your company , think about the following questions. · Why is it difficult to steal from your company? · What is the strength in the internal control system? · What is the internal control principle that is strong? NOTE: If you have no work experience, think of examples when something went wrong during your interaction with another company. An example might be when an airline lost your luggage; another might be the wrong amount was returned to you when you returned something to the store.
Answer the question, “ What Went Wrong?†Provide 6 examples and try to link them to a principle of internal control. 3. Write about your work experience(s). a. Complete Exhibit 1b - Exhibit 1b will be collected by your instructor as proof of preparation for the in-class team-based competition. It will be assigned points by your instructor based on level of effort and completeness.
If you do not complete this form, you will receive NO credit for the competition. b. Describe at least one example of each of the 6 internal control components listed above . These must be examples from a company you have worked for. On the sheet, name your company and describe your job. For each internal control principle, describe a work situation that illustrates the principle, and identify the situation as an example of weak or strong internal control, and why.
Paper For Above instruction
Supply chain management (SCM) plays a pivotal role in determining the efficiency, responsiveness, and profitability of a company. It encompasses the coordination of activities involved in sourcing, procurement, conversion, and logistics management. Among various industries, the automotive retail sector, exemplified by companies like AutoZone, demonstrates how strategic supply chain management can be a competitive advantage. This analysis explores the critical components and strategies within AutoZone’s supply chain, emphasizing the importance of distribution, technology integration, and risk management.
AutoZone’s success hinges significantly on its distribution network, which functions as the backbone of its supply chain. Traditionally, distribution has evolved from centralized shipping points to sophisticated, technology-driven processes that allow direct shipment from manufacturers to customers, minimizing delays and reducing costs. This technological evolution shortens lead times and increases responsiveness, vital for meeting customer expectations for quick delivery of auto parts.
Distribution in AutoZone's supply chain is primarily indirect, functioning as a retailer rather than a wholesaler. This positioning impacts response time and product availability. Response time directly influences customer satisfaction, with speed being a critical factor in choosing auto parts suppliers. AutoZone's ability to predict inventory needs accurately is hampered by unpredictable demand and the complexity of managing numerous SKUs. To mitigate this, the company is adopting real-time tracking software, which enhances transparency and improves inventory management. Implementing such technology involves training personnel and updating systems, which can be time-consuming but ultimately leads to better customer service and operational efficiency.
Enhanced tracking software provides real-time visibility into inventory levels and shipment stages, allowing AutoZone to provide precise delivery estimates and reduce stockouts. With inventory transparency, customers can better plan their repairs, which aligns with increased sales and customer loyalty. Furthermore, monitoring the flow of goods from supplier to customer via digital tools helps in reducing errors and delays, contributing to overall supply chain resilience.
Delivery performance remains a critical performance metric for AutoZone. Improvements in logistics, supported by technological upgrades, have reduced reliance on additional labor costs while boosting efficiency. Rapid deployment of tracking systems has been key, with the ability to implement updates swiftly—usually within days—ensuring minimal disruption. These technological advancements exemplify how supply chains can optimize performance without expanding staffing, which is vital for maintaining profitability in competitive markets.
Despite these technological advancements, supply chain risks remain significant. External factors such as weather events, transportation disruptions, and global supply shortages can adversely affect deliveries. AutoZone manages these risks through diversified supplier relationships and flexible logistics planning. Additionally, by maintaining optimal inventory levels and employing demand forecasting, the company minimizes stockouts and excess inventory, balancing costs and customer service quality.
Given the role of distribution as central to supply chain effectiveness, continuous improvements in logistics technology, risk management, and inventory transparency are essential. Supply chain productivity cannot be measured solely by profit, but also through metrics like delivery times, forecast accuracy, inventory turnover, and stockout rates. AutoZone’s strategic focus on technology-driven logistics and responsive inventory management underscores the criticality of distribution in achieving supply chain excellence.
References
- Theinnovationenterprise.com. (2018). Supply chain innovations. Retrieved February 16, 2018, from https://theinnovationenterprise.com
- Simplicable. (2018). Supply chain management strategies. Retrieved February 16, 2018, from https://simplicable.com
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