Question

A company’s supply chain configuration is significantly influenced by factors such as its product line (i.e. types of products produced/services provided), marketing strategy and cost structures. The supply chain configuration in turns determines the firm’s production plan, material planning and logistics operations. Choose two well-known companies that have different types of supply chain and operation patterns, and explain why such supply chain and operation patterns are appropriate (or not appropriate).

Answer 1

We can see the comparison between Amazon and Apple corporation in terms of supply chain model and its operational patterns. We know that both have different segments or sectors of operations. Amazon is a leading e-business company which is selling almost each products and offering special services including products of Apple incorporation to global customers. Amazon has supply partners like different sellers , its own cloud based organizations, own warehouses , own staff and delivery partners. It maintains healthy relationships with each of its suppliers . Quality is one of the area where Amazon is working hard so as to maintain superb quality of offerings and zero defective products. Amazon has established a reliable reverse supply chain system so as to collect returns of products from end customers. Amazon is low cost service provdiers. It believes in making customers satisfied with its offerings.

Apple procures raw material from different countries and then shipped the same to chinese companies or production houses to manufacture its different types of products. Then , with the help of supply chain partners like UPS, logistics management companies etc. it makes available its finished goods to super stockists , large warehouses and other sellers across the world. Apple focuses to offer quality hence cost effective operations are secondary areas of concern. It makes balance with other functions of management to supply chain activities.