Question

Describe in detail the supply chain for best buy. Ensure that you describe each step in the supply chain and indicate its function.

Answer 1

To run its operations on daily basis, every organization has various operations process. The Supply Chain Management (SCM) plays a significant role in running these operations. Without a successful SCM all operations could crawl at a snail’s pace thereby affecting the results of the same.

SCM has been constantly evolving itself and has become a key function to run the organizations. SCM now has dedicated teams and they have the responsibility of ensuring efficiency and cost effectiveness in external and internal supply chains

There are 5 stages to any successful SCM:-

1.       Planning: - One of the most strategic steps in SCM process is planning. This is done to chalk out a plan for a best possible solution or way to fulfil the desired requirement. The SCM teams need to identify the key components of their organization vis-a-vis location and size of their warehouses, delivery plans, IT models, etc. They also need to identify key operations matrix including cost of transportation, efficacy of warehousing, IT solutions etc.

2.            Sourcing: - In this step, the SCM team needs to ascertain the vendors and suppliers for raw material who are dependable and reliable and can help in running the production without endangering the process. But, the SCM teams should be efficient enough to identify the pain areas and the emergencies and challenges that can arise during operational process. They should be prepared to handle these emergencies and keep the processes running relentlessly.

3.       Execution: - In this stage, well planned processes are executed for the manufacturing of the products which are ready for the next step in the production line. This also helps in quantifying the products so that the maximum efficiency is achieved.

4.       Delivery: - After planning, sourcing and executing the SCM plans, the SCM managers’ task in this stage is to deliver the product/service in correct quantity to the right person at correct place and time. This may require the reliable and suitable carriers. The SCM team should ensure that they have complete modern tools for tracking of warehousing, inventory models, billing, invoicing and accounts payable and receivables.

5.       Returns: - This is the last step in SCM process. It involves the process of reviewing and inspecting the returned products due to quality failed purpose and also managing the internal inventory for such products. This can be seen as a value added service or enhancement where the SCM team employs its resources to better manage the return processes, like faster and easy pickups and quick replacement of product