TEAM CACTUS

Trần Phan Thanh Hà - 195120608

Trần Thục Uyên - 195120510

Nguyễn Phương Nguyên - 195120601

Vũ Cao Tâm - 195120639

Nguyễn Duy Quang - 195120609

PART 2:

1.

The pull supply chain approach essentially focuses on obtaining goods only when
it is required. The pull model in supply chain planning is mainly concerned with
inventory management and stock on hand reduction. Moreover, it suggests the
demand for relatively rapid reactions to changes in product demand. , For example,
A high-end customised jewelerwould get an order from a client, confer with them,
and discuss the specific needs of consumers for the product before purchasing
gemstones and precious metals to manufacture the product. Because the jeweler
did not have any inventory before to receiving the purchase, this is a clear
illustration of the pull supply chain approach. The jeweler waited until the order
arrived before acquiring the materials required for manufacture.

With push processes, Essentially, it is fair to regard push supply chain strategy as a
forecast-based method. Forecasts are used by organizations utilizing the push
approach to determine how much stock to order. The push processes take into
consideration each product, given the different needs connected with them. In the
supply chain, the push processes also includes aggregate predictions, such as
weekly estimates from distribution facilities to retail shops. As a result, the
producer may deliver items to multiple retailers based on projections rather than
specific store requests. For example, a manufacturer in Vietnam will not start
producing Lunar New Year decorations when customers start visiting stores to buy
holiday decorations. On the contrary, it will make decisions about the production
of products in time before the holiday according to an estimate of the quantity of
products that consumers will require.

Amazon chooses advantageous locations for its warehouses that are adjacent to
city centers and metropolitan regions. As a result, Amazon clearly exemplifies a
push approach by deciding where to locate warehouses based on downstream
demand predictions. Furthermore, when selling items from third-party merchants,
Amazon employs a pull approach to reduce the risk of unsold inventory.

2.

All processes in a supply chain can be divided into three macro processes:
Customer Relationship Management (CRM), Internal Supply Chain Management
(ISCM), and Supplier Relationship Management (SRM).

Firstly, CRM refers to the set of strategies, processes, tools, and technology used to
build and maintain a connection with a customer throughout the customer
lifecycle. CRM's objective is to boost sales, build customer loyalty, and improve
the entire customer experience. It includes processes such as marketing, sales,
order management, and call centre management.Ex: CRM is embraced by the
cosmetics behemoth Sephora. Its CRM approach centers around knowing as much
about individual customers as possible and bringing them together over Sephora
items. It also hosts an online community where customers may debate beauty items
and give recommendations.The data collected through online profiles is used to
segment users and target them with tailored offers.

Secondly, The ISCM process aims to fulfil the demands generated by the CRM
process. These processes include the planning of internal production and storage
capacity, preparation of demand and supply plans, and internal fulfilment of actual
orders.

Lastly, The SRM process focus on the interface between a firm and its suppliers
such as evaluation and selection of suppliers, negotiation of supply terms and
communication regarding new products and orders.

Ex: Apple is an example of a firm that has organized all macro processes in order
to create and sell major goods such as the iPhone. Apple has been highly
successful in its contacts with consumers, not just in producing goods that fulfill
their requirements, but also in running Apple retail as a profitable and successful
venture. Although all of its goods are created in-house, they are manufactured by a
third party. Despite this, Apple has been able to efficiently fulfill massive demand
by releasing new products. Strong coordination across all macro operations has
been critical to Apple's degree of success.

PART 3:

1.What is the difference in implied uncertainty faced by a convenience store

chain such as 7- Eleven, a supermarket chain, and a discount retailer such as
Costco? (Read the chapter 2 in texbook).

The first concerns the convenience store. Customers come to the store like 7-
Eleven for the comfort of the location; it's near to their places and appears to be
everywhere, and the client isn't necessarily searching for the lowest price.
Uncertainty regarding demand for opinions will be high since buyers want a wide
range of items and convenience against cost, and demand levels are difficult to
forecast. As a result, they must import a wide range of items and be present in a
wide range of locations and areas in order to fulfill the demands of their
consumers.

Supermarket is the second. A supermarket chain that focuses on affordability and

quality, with some chain specialties increasing its usefulness by offering a broader
selection of items that can target clients interested in the establishment's products
or ethnic food. A chain supermarket's demand uncertainty is often minimal;
consumers are frequently repeating customers with consistent needs. To ensure
deliciousness and good service levels, chain application stores must immediately
respond by receiving items. Furthermore, they must constantly keep a consistent
price for their consumers.

Finally, there are the discount stores. Customers of bargain stores such as Costco
value low pricing. This client is prepared to accept less variety and even purchase
extremely large quantities if the price is cheap. Consumer demand is more
predictable when shopping at Costco, while supply-side demand is huge and
generally constant.
 3. Consider the supply chain involved when a customer purchases a book at a
bookstore. Identify the cycles in this supply chain and the location of the
push/pull boundary. (Read the chapter 1)

All supply chain operations could be split into four process cycles that connect the
supply chain's five stages: the customer order cycle, the replenishment cycle, the
manufacturing cycle, and the procurement cycle. To begin, the customer order
cycle connects consumers to retailers; customers come to buy books in shops,
bookstores, online, and so on. The additional cycle links merchants and
distributors. It was prompted by the retailer's desire to replace the vacant shelf
space with another copy of this book. The production cycle connects the distributor
and the manufacturer; when the book's demand is met and the distributors'
inventory is exhausted, they notify the manufacturer to create an extra number of
copies. Finally, the procurement cycle brings manufacturers and suppliers together.
Paper, ink, and other materials are needed by the manufacturer to begin the
assembly process for the next Supply Chain Management batch.

For every supply chain, the push/pull boundary divides push processes from pull
processes. The bookstore push/pull boundary exists between the order process for
the customer and the processes of purchase, manufacture, and replenishment. A
pull process is one in which a process is initiated in response to a client order, the
merchant selects the order they wish to purchase and then the store just imports the
goods. On the other hand, in the push process, they create a set number of
particular sorts of books and then sell them to clients. The push/pull boundary
develops between the consumer order cycle and the procurement, manufacturing,
and replenishment cycle. Because all of the procedures in the customer order cycle
are completed only when the client arrives, the customer order cycle is a pull
process. The remaining processes are all pushed processes before the customer
arrives.

PART 4:
Metrics Walmart Macy’s Amazon.com Nordstrom Inc.
ROE 17,756/76,343 = 23.26% 1,198/6,051 = 19.80% 274/9,746 = 2.81% 735/1,913 = 38,42%

ROA 17756/203105 = 8.74% 1,198/20,991 = 5.71% 274/40,159 = 0.68% 735/8,089 = 9.09%

ROFL 14.52% 14.09% 2.13% 29.33%
Profit 17,756/469,162 = 3.78% 1.198/27,686 = 4.33% 274/74,452 = 0.37% 735/12,148= 6.05%
Margin
Asset 469,162/203,105 = 2.31 27,686/20,991 = 1.32 74,452/40,159 = 1.85 12,148/8,089 = 1.50
Turnover
APT 352,488/59,099 = 5.96 16,538/4,951 = 3.34 54,181/21,821 = 2.48 7,432/1011 = 7.35

ART 469,162/6,768 = 69.32 27,686/371 = 74.63 74,452/4,767 = 15.62 12,148/2,129 = 5.71

INVT 352,488/43,803 = 8.05 16,538/5,308 = 3.12 54,181/7,411 = 7.31 7,432/1,360 = 5.46

PPET 469,162/116,681 = 4.02 27,686/8,196 = 3.38 74,452/10,949 = 6.80 12,148/2,579 = 4.71

C2C (1.52) 1.79 (10.53) 11.56

(weeks)

Comments:

Return on Equity (ROE) measures how much the company’s ability to earn the
profits belonging to the shareholders. This ratio is affected by how much the
company’s debt. If the proportion of company’s debt is bigger, so this ratio will be
higher as the stockholder equity become smaller. It means the company’s assets is
not generate the satisfied profits for the company, and otherwise. It is also often
used to measure the effectiveness of the management to generate profit and loss of
stockholders. Therefore, ROE can be said as the main summary to measure the
company’s performance. It can be seen that the ROE for Nordstrom, Walmart,
Macy and Amazon are 38.42%, 23.26%, 19.80% and 2.81% in 2012. Based on the
comparison ROE value among for companies, the Nordstrom Inc management can
be said the most effective to organize the shareholders equity to generate profits.
However, at the same time, the Nordstrom has more proportion of the company’s
debt rather than the remaining 3 companies. After all, the Nordstrom has the best
performances of ROE in 2012.

The high value of ROA means the company ables to yield profits greater than its
value assets. Investors will always want to invest in companies that have a high
ROA which means this company can guarantee profits to investors. Not only for
the return of investment, but its analysis can be shown as the ability of the
company to generate profits in the future besides ROE. As the table shown, the
ROA of Nordstrom is highest (9.09%) and Amazon’s ROA is lowest (0.68%). It
means Nordstrom is more effective to organize the company’s assets to get more
profits. Therefore, it has the best performance of ROA among 4 companies in
2012.

Profit margin shows how much money that the company makes for each dolla of
sales. The higher net profit margins means that the higher of net income. As the
table shown, profit margin of Nordstrom is highest (6.05%) and the remaining
three companies are lower: Macy’ (4.33%); Walmart (3.78%); Amazon (0.37%).
As a result, the Nordstrom is more profitable in 2012.

Assets Turnover can explain how successful a company is in utilizing its assets to
generate profits. If a compay can make a sale by using assets at a minimum it will
result in a higher asset turnover ratio. As the data from table, the Asset Turnover of
Walmart is highest (2.31). It means Walmart Store is more efficient in utilizing its
assets than other three companies. Thus, Walmart has the best performance in the
asset turnover in 2012.

When a company has higher APT, it means that the company has shorter period to
pay the bill of purchasement. As the table shown, APT for Nordstrom, Walmart,
Macy, and Amazon are respectively 7.35; 5.96; 3.34 and 2.48. Based on the
comparison APT value, Nordstrom has highest ratio. This company is more
efficient in organizing its cash. Thus, Nordstrom has the best performance in the
Accounts Payable Turnover in 2012.

ART for the company is very important to know because the higher the ART, the
reveivables that can be billed by the company more and more. So that will
minimize the existence of bad debts and accelerate cash flow. Based on data from
table, ART of Macy is highest (74.63). It means Macy is faster to collect its cash
since the sales revenue gained. Therefore, Macy has the best performance in ART
in 2012.

Basically, a good company is if the inventory of goods sold manufatured quickly

changed so that the cost of storage and the level of damage to the goods is lower,
which can cause increase company’s profits. It can see that the Walmart achieved
the highest INVT (8.05). It means Walmart has shorter period of the finished goods
become sold. Thus, Walmart has the best performance in INVT, and inventory
management of Walmart can be said better in 2012.
The higher PPET, the more efficient capital investment. Based on the table, PPET
of Amazon is highest (6.8) and PPET of Macy is lowest (3.38). Therefore, Amazon
has the best performance of PPET amont four companies in 2012.

As you can see, the Walmart and Amazon have negative C2C (-1.52 and -10.53)
while Macy and Nordstrom have positive ratio (1.79 and 11.56). Moreover, C2C of
Amazon is lowest (-10.53 weeks). It means Amazon collected its money of sales of
products more than 10 weeks before it had to pay it suppliers. Thus, Amazon has
the best performance in rotating its money among four companies in 2012.