Muhammad Wasil Khalil 46093

Assignment 1
Importance of supply chain and its examples

Management of the supply chain is important to industry because the need to

minimize costs by working more effectively as activities become more complex.
To achieve this goal, significant changes are needed. The important components of
the supply chain are
• Reducing energy consumption while traveling.
• Reduce labor costs through automation.
• Meet market demand for an inventory more diverse.
• Managing real estate rent increases as supplies are held closer to population
centers.
Example of Tesla:
Tesla is making creative, extremely famous, and luxury cars right in California, an
incredibly expensive property area. Rather of having a long supply chain of cheap
component suppliers, they have a vertically integrated supply chain with a full-
service car plant near their corporate headquarters and plans for a manufacturing
park and a huge battery factory, and Tesla owns it all. The digital supply chain that
the company is supporting is even more fascinating-new technology and software
upgrades are being sent out across the web to current car owners.
Example of Zara:
Fashion companies move production to China. It saves on prices, also complicates
supply chain management. In particular the fashion trends are short-lived. Cargo
travel in cargo ships halfway across the world complicates the fast fashion concept.
More than half of its products, by comparison, are imported from Spain , Portugal
and Morocco. The costs are higher but shorter supply chains allow them to adapt to
trends more quickly. Zara is not speculating about the new trends any more.
Production is suspended until the customer is certain what he will actually buy.
The products are being priced at full price, and stocks are small.
References:
• https://www.smartsheet.com/supply-chain-management
• https://www.spotlightmetal.com/what-is-supply-chain-management-definition-example-
objectives-a-785111/
Muhammad Wasil Khalil 46093
Assignment 1
Importance of supply chain and its examples
• https://www.riverlogic.com/blog/what-is-supply-chain-management-and-why-is-it-important
• https://aims.education/importance-of-supply-chain-management/