Name: Areej Iftikhar Subject: Supply chain management

Class: BBA-5B Submitted to: Sir Munawar Ahmed

Enrollment no: 01-111202-172

Assignment-1

1. Wal-Mart’s secret of everyday low prices

Walmart’s is the world’s largest retailer house operating stores in more than 50 states and
in 27 countries that serves 100 million customers they always been recognized as daily
low rate shopping partner codified by low price guarantee. Walmart undoubtedly takes
pride in low cost merchandise that states everyday low price is the cornerstone of their
strategy. Apart from all these Walmart pays their employees fair compensation. This is
possible due to few competition. As the online sales are rising it prompts Walmart to
keep their cost low to stay competitive in many areas where Walmart are the only major
retailer also 90% of the US citizens lives within 15 miles of Walmart stores and people
use their physical stores as their count on millions of customers for consuming their
groceries, clothing and other household materials. Since inspection, Walmart followed
the guidelines frames by their late founder to keep their operational cost low the stores
keep cost low by using sophisticated and large automation tools by keeping in store
design having budget travel options. Walmart has huge bargaining power when it deals
with suppliers many brands relies on Walmart sales for their existence while established
companies can little afford to be removed from Walmart aisles.

2. Dell- From direct sales to channel strategy

The direct model of dell computers does not use retail channel but it also sells PC directly
to customers website the way intermediary steps may add up their time and cost are
eliminated so thereby dell is linked to their customers this direct approach allows dell to
establish a strong relationship makes it easy and easy for customers to do business with
dell. The strategy begins with the build to order models that helps dell to keep their
inventory down and very low compared to their competitors like Lenovo or Compaq.
Dell has lower inventory of five to ten days, dell purchases significant number of
components from their single source the alternative sources of supply are not available.
Accordingly, if supply of a critical single sourced material were it is delayed now dell’s
ability to ship the related product in their desired quantities and in a time bound manner
that could be adversely affected even with alternative sources of supply are available,
qualification of the alternative suppliers and reliable supplies could end up in delay and
loss of sales that impact their operational profit.
3. Honda’s approach to supplier management
Honda motor company ltd is a Japanese automobile manufacturer and public
multinational company that produces passenger cars, motorcycles and power equipment
trains having its headquarters in Tokyo Japan. Honda uses only top management support
function to share their plans with each of their suppliers. These meetings involve a Honda
Team includes vice presidents of supplier management and several assistant along with
supplier team network. Only core suppliers participate in those meetings that conducted
in global or regional levels. Honda invites one supplier from each region to the global
meet in Tokyo every year it held one to one meet with 35 other North Americans
suppliers. The company discusses supplier’s strategic movements in terms of technology,
globalization, major investments and ideas about their new products. The meetings cover
improvements which will be necessary in the quantity, cost and ultimate delivery to the
end consumers

4. Toyota-Just in Time methodology

The Toyota production strategy formulated on two concepts Judoka which means
automation with human touch as when problem occurs the machine stops working
preventing further defects and another one Just in Time in which each processes produces
only what is required for the next stage in a streamlined and continuous flow manner. Just
in time is producing quality products efficiently through complete elimination of wastage,
inconsistencies and unreasonable requirements aligns in the production line. Respectively
known as muda, Mura and muri in Japanese. In order to complete an order requirement
through complete elimination of waste the vehicle is efficiently built within the shortest
possible of time by:
 When a vehicle is arrived, the production instructions must be issued at the
beginning of the vehicle production as soon as possible
 The assembly line must be stocked with the required number of all the necessary
parts so that components can be ordered.
 The assembly line must also replace the parts by retrieving the same number of
parts from the parts producing.
 The last process must be stored with all small number of types of parts and helps
to produces the number from the next process.

5. Harley-Davidson and its supply chain

Harley Davidson is an American manufacturing motorcycle company the manufacturer
sells heavyweight motorcycles earlier in 1950 managing their supply chain was never a
priority therefore in mid-1970 Harley’s was in worst condition due to the lack of quality
issues. In 1981 Harley tried to implement JIT and supply chain management ultimately
succeed. Initially they faced difficulty due to lack of quality performance. Maintaining
supplier relationship was not easy Harley’s management had to overcome several
problems for their growth market share rapidly started to decrease to 23%. Harley’s had
 to put in place a structure that aims to deliver the company’s objective and been the best
manufacturer of such products later they form an operational team that could drive the
company from poor to works class stage, the team came up with programs they could
change the company’s profile in terms of return of investment like:
 Supplier development
 Inventory performance to requires quantity
 Enhancing return on investment with low finished stock
 Achieving continual process improvement

6. Federal express or FedEx- Packages Delivery systems

Federal express or popularly known as FedEx was among the pioneers to start first
express transportation with realizing the benefits of technology in 1978, the company
executed the first automated customer service control. To provide real time package
information, they uses one of the world’s largest computer and telecommunication
channel that streamlines their supply chain. They operates with Supertanker hand held
computer that records transit of shipments through its integrated network. The technology
adoption focus on the consumers rather than completely trying to remain competitive.
This determines the status of the package delivery of all the possible locations along with
the delivery route in the real time, customers can track packages in three ways via FedEx
web page or by their mobile app. COSMOS( customer operation service master online
system) is a computerized package tracking method that monitors each phase of the
delivery cycle at the FedEx here customer service representative enter the shipping data
into the COSMOS server through terminals alerting the dispatcher to come at the nearest
pick up center dispatcher relay pickup and the delivery data via the courier called DADs
small digitally assisted computer systems in many courier vans.

7. McDonald’s- Management of its supply chain

McDonald’s uses a vertically integrated supply chain to control costs and boost
profitability. They grow their own potatoes and other vegetables through contracted
farmers, prepare their own meat in factories they hire, grow their own beef through
contracted producers, and transport their own commodities. They also make their own
spices and mixes. McDonald’s does not have to deal with leases or landlords because
they control the land on which their restaurants are located. Finally, they sell their goods
through their own channels, including the internet and physical stores. A vertically
integrated supply chain is used throughout the entire process of creating McDonald’s, and
it obviously works well for them. They have control over the suppliers as a result of this
strategy, which leads to better pricing policy, cost control, and ultimately product quality.
This is one of the clear advantages of their supply chain structure.

8. Apple’s Innovation Strategy

 The following companies have contributed to Apple’s enormous success in supply chain
management and its innovation strategy. Concentrate on producing fantastic products
employing cutting-edge innovation supplying goods with a life cycle longer than a year
and that are not seasonal putting all the warehouses in California in one central location.
By synchronizing data between its own stores, consumers, and the central warehouse,
operations can be made more productive and economical. Lowering the manufacturing
cycle time by outsourcing the production, limiting the number of important suppliers
engaged in production, shipping, and storage, asking for price reductions and requesting
that suppliers move nearer to Apple’s manufacturing facilities and reducing the number
of SKUs to roughly 26000 in order to streamline and aid in the creation of more precise
demand projection.

9. Tesco- Entry and Exit from Japan

Tesco conducted considerable study over a number of years as part of its goal to broaden
its market to other developed and developing regions abroad. Tesco started to expand into
new markets, opening new stores in the US, making acquisitions to reach developing
markets in Central Europe and Japan, as well as cooperative initiatives to penetrate
countries like South Korea and Malaysia. Tesco announced its departure from Japan,
where it had entered the market through purchase, at the end of August 2011. Tesco left
Japan after eight years of operations due to its inability to build a sufficient, scalable
business. Due to changing economic and demographic conditions that have an impact on
consumer behavior, Japanese shoppers have shifted away from branded luxury goods in
Tesco stores in favor of more reasonably priced private labels. In addition, Tesco’s
British business model and the Japanese retail market both had a string of food safety
scandals.

10. Toys-R-Us-Goes to Japan

Toys-R-Us entered the Japanese market after being a well-known and prosperous
company in the US because they saw a growth opportunity there due to the absence of
genuine competitors. When they moved there, they took with them the same values and
supply chain management techniques that had helped them become well-known in the US
in the first place

11. Nike- ERP implementation saga

Nike spent $400 million on the i2 software in order to modernize its enterprise resource
planning system in 2000. By completing the planned manufacturing process in a week or
less rather than a full month, these actions were made to fast meet market demands. To
do this, the corporation had to make the production process more distinctive in order to
satisfy client demands. Their initial objectives with this investment and target for
implementation were to control the supply chain and forecast product demand. Due to a
 software, error, stores were unable to satisfy orders for the Air Jordan’s, which resulted in
a $100 million sales loss and a 20% drop in stock price for the shoe company as a result
of this choice.

12. Ryan air- Pioneer of Budget Airline

Ryan Air’s cost-cutting strategy can be seen as a major contributor to its success and
ability to stand out in the market. According to a Ryan Air investigation, the airline uses a
low cost model to control costs, such as catering and cleaning, by taking a no frills
approach. Due to less traffic, choosing to land at a secondary airport results in lower
parking costs as well as lower landing fees. Ryan Air saves money by allowing customers
to buy tickets and check in online, freeing up resources that may be used for marketing
and promotion. Regarding customer service, Ryan Air surpasses its rivals. In addition to
offering affordable tickets and having fewer lost luggage, Ryan Air flights are prompt
(88% of flights arrive on schedule), the firm got less complaints, and 99% of the
complaints were resolved within a week. The business was also acknowledged as the
greenest, cleanest airline in Europe. This explains why over 73 million customers chose
to travel Ryan Air, which is the most popular airline in the world. Ryan Air presently
operates 1400 flights per day from 44 bases on more than 1100 low-cost routes
throughout 27 countries, demonstrating its excellent operational capability. It
demonstrates the factors that have helped make Ryan Air the most popular and
prosperous airline in Europe.

13. The Demise of Blockbuster

In the exciting days of 2000, Netflix had 300,000 subscribers. Even then, Hastings had a
vision that in some unspecified time in the future movies would be streamed cheaply over
the web. However that future wasn't here nonetheless. The corporate was in loss.
Hastings flew to Dallas and met with Blockbuster, who offered them 49th % of the
corporate. Netflix would become blockbuster.com and become Blockbuster's online
video division. Blockbuster wasn't interested. At the time, they failed to see the threat
expose by digital media. Blockbuster's commerce the previous year valued the corporate
at $4.8 billion. 2 years when Netflix closed, it rumored a loss of $1.6 billion. Netflix
reported its 1st profit in 2003, a year before Blockbuster entered the online DVD market.
Whereas Netflix has become a cultural behemoth, Blockbuster was price $500 million in
2006 and $24 million in 2010 once it filed for bankruptcy. Once scuffling with debt and
stiff competition from Netflix and red box, blockbuster, Inc. filed for bankruptcy in
September 2010. It had been a tragic finish for the corporate that dominated the film
rental trade within the 1990s. Blockbuster INC. was based by David Cook in 1985 with
its 1st rental store in Dallas, Cook planned to require advantage of an extremely
fragmented video rental market during which most stores were comparatively modest
family-run operations that carried little choice of former major hit films chiefly
attributable to the high prices distributors usually charged concerning $65 for the tape.
14. Zara – Spanish apparel retailer
Zara could be a Spanish vesture and accessories retail merchant primarily based in
Arteixo, Galicia. Based in 1975 by Amancio solon and Rosalia Mera, the corporate is that
the flagship store chain of the Inditex cluster, the world's largest vesture retail merchant.
The corporate focuses on quick fashion and its merchandise embody vesture, accessories,
shoes, swimwear, cosmetics and perfumes. It’s famed for its robust on-line presence and
skill to quickly deliver trends at comparatively low costs. Amancio solon and Rosala Moj
have worked for Zara since the corporate was based in 1975. It’s in hand by Inditex, a
world vesture retail merchant, and its brands embody Henri Bendel, David Jones and
Indigo. Zara operates on its on-line platform in 202 countries and has over 7,000
branches. The corporate has 174,000 staff worldwide. Zara's core values have remained
consistent throughout the years, expressed in four key words that outline all their stores:
beauty, cleanliness, practicality and sustainability. Additionally, Zara stores feature
frequently identification technology that enables customers to instantly track the situation
of clothes and guarantee they're accessible for purchase as shortly as possible. The
vesture complete Zara is that the flagship of the Inditex cluster that operates a number of
the world's largest clothes shops. As a part of its Zero Waste program, Zara can utterly
eliminate risky chemicals from its entire provide chain by 2020. The company's fashion
divisions embody Massimo Dutti, Pull and Bear, Bershka, Antonio Stradivari, Oysho,
Zara Home and Uterq.

15. Seven-Eleven Japan Co.

Seven-eleven started within the early 1970s in Japan and quickly became the highest
store within the country. The corporate sells foods, beverages, magazines, and diversion
package. Seven-Eleven conjointly offers repetition, printing, price ticket booking and
residential delivery services. The company’s rise has been considerably increasing each
its revenue and profits in an exceedingly very short amount reworking the retail business
within the country. The corporate conjointly operates within the USA and has been able
to improve its performance within the country over time. The strategy of Seven-Eleven
has been market domination and increasing quickly. They attain this building a cluster of
50 to 60 stores in a very tiny region serving them through one distribution center. The
franchise system has conjointly been each useful and has helped the corporate expand
more. Another important advantage has been provided by the knowledge} and data
assortment system and technology in place permitting the corporate to extend its potency.
The corporate has unbroken on growing to supply in-store services and has remained at
the highest of Japan’s retail sector.

16. Blue Nile and Diamond Retailing

Blue Nile is a web jewelry merchandiser that was based in December 1998 and sells
merchandise solely within the united states, with one warehouse in Seattle, WA. In 2007,
their e-business expanded into Canada and also the UK and opened another facility in
 Dublin serving Western Europe and also the Asia-Pacific region. Their lower inventory
and warehouse prices permit them to own a 20%-30% margin on their merchandise
compared to 500th for his or her sales outlet competitors. The company's revenue was
$322 million and their income was $22 million. However, within the third quarter they
saw their initial decline of 2.9% in sales for 2008 compared to an equivalent quarter in
2007. Key drivers of client purchases in diamond retail embrace quality and vary of
merchandise offered, reputation, skilled recommendation offered and client perception
and emotional ties, embrace a positive looking expertise and client service. Success
conjointly depends on achieving sales savings through such avenues as discriminatory
access to resources, an economical supply chain and selling strategy, furthermore as the
ability to manage as well and operational prices and effectively manage inventory. The
key success factors for Blue Nile, Zale’s, and Tiffany in coping with customers are
associated with the characteristics of their individual target markets. Blue Nile, for
instance, offers high-quality diamonds and fine jewelry on-line that are like Tiffany's,
however with markups that are less than artist and Zale’s. Based in 1999, Blue Nile
targets customers who need sensible price and like to buy from the comfort of their own
residence without high pressure sales techniques. They conjointly offer customers with an
easy-to-understand jewelry education as well because the ability to style custom jewelry.
However, its customers ought to hand over the active looking experience as well because
the immediate delivery offered by Tiffany's and Zale’s retail locations. Opened in 1834,
tiffany is an independent specialty jeweler providing premium diamond rings, precious
stones and fine jewelry, watches and crystal and sterling silver service items. The
exclusivity and prestigious image of the tiffany brand, in depth services and fashionable
locations enable it to keep up and gain a share of the luxurious market each domestically
and globally. In distinction, Zale’s, a specialty merchandiser of diamond fashion jewelry
and diamond rings within the U.S. since 1924, has high brand recognition and charm to
value-conscious customers.

17. Managing Growth at sportsstuff.com

Sanjay Gupta supported SportsStuff.com in 2004 with a mission to supply parents with
more cost-effective sports gear for their youngsters. Parents complained that they had to
throw out valuable skates, skis, jackets and boots as a result of the children quickly
outgrew them. Sanjay originally planned for the corporate to shop for used equipment
and jackets from families and surplus equipment from manufacturers and dealers and sell
them over the internet. The thought was well received by the market, demand grew
speedily, and by the end of 2004 the company had revenues of $0.8 million. By this
point, variety of latest and used products were being sold and also the company had
received important risk capital backing. In June 2004, Sanjay leased a part of a
warehouse within the suburbs of St. Louis to manage an outsized range of products for
sale. Suppliers send their products to the warehouse. From there, client orders were
packaged and shipped by UPS. As demand grew, SportsStuff.com hired additional
warehouse space. By 2007, SportsStuff.com had hired an entire warehouse and orders
 were being shipped to customers across the United States. Management has divided the
United States into six client zones for designing purposes. SportStuff.com charged a flat
fee of $3 per shipment sent to the client. The typical client order contained four units. In
return, Sportstuff.com contracted with UPS to handle all of its departing shipments. UPS
charges were based on each the origin and destination of the cargo. Management
estimates that incoming shipping prices from suppliers are probably to stay unchanged
notwithstanding that warehouse configuration is chosen.

18. W.W. Grainger supply chain

Senior vice president, supply Chain, Y.C. Chen, provided an update on supply chain
operations detailing the results of the recently completed logistics network program. As
part of the program, the corporate added more than 1,000,000 additional square feet of
capacity and new automation to increase accuracy, speed and potency within the supply
chain. Grainger's 9 distribution centers replenish branches daily and deliver same-day
products to customers for next-day delivery. "The service and productivity enhancements
we've achieved over the course of our program are a strong driver of our robust year-
over-year results," said chen, who noted that overall cycle time has improved by nearly
20 percent as a results of these enhancements. "Going forward, we've a progressive
distribution system that may function a powerful foundation for growth. We’ve got
already seen a $115 million reduction in inventory and quite a 25 % improvement in
productivity. We have a tendency to expect to see an overall improvement of 50 % across
the entire project. It is expected that the accumulative the income from the project are
going to be positive in 2005, and our redesigned supply network is predicted to contribute
$10 million in in operation profit this year." W. W. Grainger, Inc. (NYSE: GWW), with
2003 sales of $4.7 billion, could be a leading broad-based supplier of equipment
maintenance products serving businesses and institutions throughout North America.
Through its network of nearly 600 locations, 17 distribution centers and multiple
websites, Grainger helps customers save time and cash by providing them with the proper
products to keep their equipment running.
Forward-looking statements
This document contains forward-looking statements underneath federal securities laws.
Forward-looking statements relate to the Company's expected future monetary results and
business plans, methods and objectives and don't seem to be historical facts. Qualifiers
like "expects", "predicts", "estimates", "intends", "plans", "forward", "may serve" or
similar expressions are usually known. There are risks and uncertainties, the end result of
that might cause the Company's results to differ materially from forecasts. Forward-
looking statements should be scan in conjunction with the Company's most up-to-date
annual report, further because the Company's form 10-K and other reports filed with the
Securities and Exchange Commission, which contain a discussion of the Company's
business and the various factors that may have an effect on it.

19. MacDonald’s/KFC, Pakistan or any other Pakistani Company’s Supply chain

processes
McDonald's Pakistan is that the Pakistani affiliate of the international quick food chain,
McDonald's. Its initial restaurant was established in Lahore, followed by a second
restaurant a week later in Karachi, in Pakistan 1998. McDonald's Pakistan currently
operates 72 shops across 24 major cities nationwide, serving millions of customers. Its
franchise locations include Karachi, Lahore, Faisalabad, Islamabad, Rawalpindi,
Gujranwala, Peshawar, Multan, Hyderabad, Quetta, Sargodha, Bahawalpur, Sialkot,
Sukkur, Sheikhupura, Rahim Yar Khan, Dera Ghazi Khan, Gujrat, Sahiwal, Abbottabad
and Jhelum. The most important number of outlets is in Lahore, followed by Karachi and
Islamabad-Rawalpindi. In Pakistan, the franchise rights for McDonald's are in hand by
Siza Foods Pvt. Ltd., a subsidiary of the Karachi-based Lakson group of companies. In
December 2015, the fast food chain opened doors to its initial restaurant within the
northwestern city of Peshawar, with a seating capacity of 200. In April 2016, McDonald's
opened its initial restaurant in Quetta. In January 2018, McDonald's became a sponsor of
the city Zalmi cricket team and proclaimed a "Peshawar Zalmi Meal" that fans would be
ready to order at restaurants. Revenues generated from the special meals would be given
to the Peshawar Zalmi Foundation, and spent on rise the lives of underprivileged kids. In
April 2019, McDonald's and Pakistan International Airlines (PIA) inked a memorandum
of understanding providing special meals and offers for pia passengers, which might be
written on their boarding passes and remain valid across all McDonald's shops
nationwide. In Sept 2019, McDonald's and Chevron Pakistan proclaimed a strategic
partnership, whereby Chevron would satisfy the manufacturing needs of lubricants and
coolants for all of McDonald's Pakistan restaurants. McDonalds could be a fine example
of however vertical integration will keep prices down and profits up. They grow their
own beef through contracted producers, process their own meat, create their own spices
and mixes in factories that they contract, grow their own potatoes and different vegetable
through contracted producers, transport their product on their own. McDonalds owns the
land that their restaurants are set on, so that they don't need to take care of leases and
landlords. They need taken management of their provide chain nicely. Everything that
creates McDonalds, McDonalds, is completed through a vertical integration provide
chain, and obviously it very works for them. Of course, they're an oversized volume
purchaser (that could also be one among the most important understatements) that makes
the vertical integrated provide chain the simplest choice, however there are lots of firm’s
exploitation the system and not experiencing the growth that they are doing. One among
the clear benefits to their offer chain system is that they need management, though
consistent with the individuals responsible, McDonalds doesn't need to regulate their
suppliers. However, this method will offer them a great deal of management over
provides. In 2016 McDonalds provide chain system was ranked number 2 within the top
provide Chains by Gartner’s. One among the key reasons for McDonalds prosperous
provide chain is their unconditional interest model. It’s a model wherever suppliers
receive larger items of the proverbial pie by doing business with McDonalds. In
traditional models, suppliers and business receive price from each other however in
McDonalds approach suppliers and business produce price along. Their model promotes
growth not solely of the restaurants except for the suppliers yet. McDonalds philosophy is
predicated on the legged Stool approach designed by McDonalds founder Ray Kroc. He
established trust along with his suppliers by developing a winning strategy wherever
every “leg” of the franchise was heavily hooked in to the opposite to succeed. The
primary Leg of the stool is McDonald’s workers, the second leg is that the franchise
homeowners and also the third leg are the sure suppliers. Every “leg” could be a partner
in success and equally necessary. If one leg fails, the stool collapses. For one member of
this trinity to prosper all of them should prosper. By approaching suppliers with an idea
that helps them to relish additional profits and steady growth McDonalds will secure the
provides that they have and keep prices down, whereas enjoying their own profits. As an
example, suppliers ought not to worry regarding requesting will increase for merchandise
that's already designed into the contract. Because the restaurants move, therefore do the
suppliers. Rather than viewing producers as straightforward suppliers, they're viewed as
business partners and collaborators.