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In: Economics

Identify at least one supply chain strategy that your company ( Intel) has implemented. Explain what...

Identify at least one supply chain strategy that your company ( Intel) has implemented. Explain what that strategy entails and why it has been successful.  Identify the Internet sources you used for this part of the assignment. The company is INTEL.

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Expert Solution

  • Intel Corp. has focused on value-chain optimization as part of its core company strategy.

  • this meant driving efficiency and cutting costs across thousands of suppliers and customers.

  • today, an innovative approach to corporate collaboration is leveraging supply chain at Intel to not only achieve these results — but also grow a new source of revenue

  • A Data-Centric Vision

    • Intel has aimed to address explosive demands for a data-driven future — growing beyond its traditional PC and server businesses into products and services that process, analyze, store and transform data, with an emphasis on internet of things (IoT) technology.

    • The company formed a business unit — Internet of Things Group (IOTG) — which began developing products that utilize sensors, gateways, cloud and edge technologies. It quickly became a key growth area with an enormous pool of potential customers across industries, including logistics, transportation and supply-chain management.

  • SC@Intel

    • Intel’s supply chain reflects its global operations: The California-based company does business in more than 100 countries, with over 14,000 suppliers, 2,000 customers and 12,000 SKUs

    • A new team called Supply Chain at Intel (or “SC@Intel”), led by Vaz, would provide expertise to IOTG — and ultimately other internal business units — to help develop solutions for external markets

    • The team includes supply-chain regional managers in North and South America, Europe, Africa, the Middle East and Asia Pacific; software and hardware engineers; and blockchain, AI and digitization content experts.

    • SC@Intel and IOTG embarked on a world tour of diverse logistics facilities, and saw an overwhelming need for digital solutions that could streamline operations — particularly real-time tracking for location and condition of shipments

  • Ecosystem-Driven Business

    • SC@Intel projects are increasingly finding supply-chain and logistics use cases for Intel technology.

    • It’s work has generated multimillion-dollar revenue growth and created a host of global partnerships

    • The program has helped reshape company culture and create development opportunities — and it’s become an integral part of Intel’s global supply-chain strategy.

    • The ecosystem-driven approach connects Intel’s supply chain organization to its business units, sales and marketing teams so that they’re regularly influencing each other and finding ways to create value.

  • The company’s ‘conflict- free’ microprocessors was achieved through a rigorous effort to validate the sources of specific metals (tin, tantalum, tungsten and gold) as 'conflict free' used in the company’s microprocessor products.

  • Intel IT plays a leadership role in creating a supply chain that supports new business models and expands Intel’s manufacturing capabilities.

  • developing an integrated data platform (IDP) that integrates an SAP HANA system with our Cloudera Distribution of Hadoop* cluster.

  • SAP HANA offers real-time data management. That means our supply chain managers can analyze data within seconds of it being saved or created—no more having to wait hours for a report or to perform analysis.

  • SAP HANA supports data for all primary supply chain capabilities such as core manufacturing, order management, supply demand, supply planning, financial data, analytic systems, dynamic inventory tracking, warehousing, supplier security management, and capacity utilization functions

  • Hadoop to store and process many structured and unstructured types of data, such as input from Internet of Things (IoT) sensors and social media streams.

  • The combination of SAP HANA’s in-memory capabilities and Hadoop’s big data capabilities creates a real-time “sense-and-respond” supply chain.

  • intel is one of many Original Component Manufacturers (OCMs) that operate in a worldwide market that offers both opportunity and risk

  • All OCMs face these in-common market risks, and each OCM implements risk management according to the OCM’s business needs and policies.

  • Intel supply chain risk management encompasses both the inbound and outbound supply chains. The four distinct operations include:

    • Inbound materials: Sourcing physical ingredients used to make electronic parts.

    • Function development: Designing the electronic part functions and logical processes.

    • Enterprise & manufacturing processes: Actually making the parts

    • Outbound finished goods and spares:Getting the parts to end users and supporting them.

  • Each operational area faces distinctly different technical challenges and potential risks, therefore each operational area implements different risk mitigation controls.


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