Question

From your perspective, how could you use supply chain tools such as SC drivers, strategic alliance, distribution network, inventory, warehousing and transportation to improve not only your company but the total supply chain of your industry?

Answer 1

In order to improve not only the supply chain operations of the organization but also to participate in the overall improvement of the industry supply chain, it is important to use the elements such as strategic alliance, distribution network, inventory, warehousing, and transportation.

Strategic alliances can be formed between two or more organizations so that they can provide and assist in the supply chain operations of each other. For instance, is Company A has greater coverage in a certain area then it can help company B to develop or facilitate better distribution and supply chain and vice versa. Similarly, by having the adequate or optimal level of inventory in the organization, the firm will not only ensure that the inventory cost is optimal but it will also help the other firms in the organization to acquire the right quantity at a relatively optimal price. They can also help other firms in order to achieve this objective.

In the case of warehousing and transportation different firms can facilitate these services to other firms and in fact, can have a mutual association in which they can provide these services to other firms in case they have added capacity.