CASE STUDY Read the article below and answer the questions that follow. Building a Digital Supply Chain Ready for the Future Complaints from frustrated customers were mounting at a major US retailer. More than 20% said they could not find the companys branded products in shops because items were out of stock. The problem was that efforts to improve service disrupted the companys low-cost distribution model. It had the right infrastructure but lacked the digital tools necessary to increase supply chain reliability. Moving quickly, the leadership team invested in digital tools to obtain real-time data, shorten replenishment cycle times, optimize deliveries and predict future demand. As data streamed in from stores the minute shoppers purchased goods, the company rapidly restocked hot-selling items to capture sales that it previously had lost. The shift cut retail cycle times by 20%, to four days, generating a 0.5% increase in sales. And that was just the first wave of improvement. Over the next 24 months, the company aims to reduce the time needed to fill store orders to two days, for a 60% total reduction in retail cycle time. Companies that integrate digital technologies into their supply chain can quickly improve service levels while cutting costs up to 30%. Just as important are the options that digital technologies provide to develop new business models and new strategies. For instance, leading-edge companies such as Adidas are deploying 3D printing to move some production closer to customers, offering greater product customization and shorter lead times. Despite those advantages, many companies are struggling to keep pace with an onslaught of digital trends that are disrupting traditional supply chain management, slashing response times and raising customers expectations. The speed of change is overwhelming, especially for those that are not digital natives. Seventy percent of executives expect digital innovation to have a significant impact on their supply chains during the next five years, according to a recent Bain survey, up from just 63% in 2016.

With reference to relevant theory and the information in the above-mentioned case study.

1. Discuss THE BELOW five major Supplier Relationship Management (SRM) processes that US retailers would adopt to improve their operations. (10 Marks)

Design collaboration

Source

Negotiate

Buy

Supply collaboration

I DO NOT WANT THE BELOW ANSWER PLEASE PLEASE PLEASE

Following are the five major supplier relationship management processes that the US retailers should adopt to improve their operations:-

1. A) Creating channels for consistent communication- Communication is the key factor in maintaining relationships with the suppliers. Communication will create transparency and remove any incorrect measures such as missing purchase orders or inventory count. Proper tools should be implemented by the retailers for maintaining communication relationship with the supplier.
2. B) Dish out blame evenly- Relationship when the supplier is ruined when all the blame is put on there working process. A proper communication should be made with the supplier and faults of both the sides should be considered.
3. C) Know you are not the only retailer- Suppliers are having multiple chain of retailers with whom they are working. The retailer should give supplier the benefit of doubt if the demand is not met instantly. Only priority products should be ordered by the procurement department instead of making unrequired demand of products.
4. D) Transparency through technology- Retailers must use fully integrated procure to pay system for accessing real time information which they have to request from the suppliers. The demand should be made through emails so that transparency is maintained.
5. E) Pay on time- Delayed payment of transactions ruins the relationship with supplier. Therefore, the first important task US retailer must do is to make timely payment to the suppliers so that they do not get a chance of holding back the order of the retailer.