Question: Will upvote. It is a supply chain based question. Please give me a discussion-type answer with valid points. Traditionally, companies avoid zero-based supply chains out

Will upvote.

It is a supply chain based question.

Please give me a discussion-type answer with valid points.

Traditionally, companies avoid zero-based supply chains out of concerns of direct costs, or because they consider supply chains to be so dynamic that it's not cost-effective to isolate individual line items compared to the currently-accepted lean methodologies used. To find the full potential of their supply chain functions, Jochim et al recommend employing zero-based approaches to save businesses up to 50% of their costs, with the caveat that the methods depend on strict performance management and established infrastructure. Breaking down costs into the four categories of direct labor, indirect labor, warehouse and logistics, and materials, a company aggregates their internal and external data to establish spending category benchmarks and set business targets with an emphasis on precise focus. A "keep the lights on" survival minimum is identified based on customer value, regulatory requirements, and nonnegotiable customer requirements.and The company's activity costs are evaluated and challenged for their final contribution. Evaluating each activity helps identify redundant or extraneous elements that can be eliminated, and the supply-chain function can be rebuilt specifically to support the business strategy.

The first step for an organization seeking a supplier collaboration is defining what they want to achieve from their efforts, and what they need to do to realize those goals. Afterwards, the buyer and supplier face the barrier to collaboration in the fact that companies are usually unconvinced that their partners will be ready to put the interests of the collaboration above their own firm's interests. To help build trust, it's recommended that the collaboration start with a small, simple project with a quick turn-around tie to demonstrate willingness. From there the firms can engage in joint business planning where they align on short- and long-term business objectives, agree on mutual targets, and jointly develop plans to achieve set objectives. Successful collaboration helps foster a culture of communication and transparency that will help the two firms help each other build value in their shared supply chain.

Several of the earliest e-busniesses underperformed or failed due to insufficient logistic strategies. Despite the advantages of the Internet's support for direct-business models and the efficiency of e-commerce, the introduction of new supply chains with increased B2C transactions, particularly with a shift from bulk shipments to smaller or single parcels over much larger geographic areas. An increase in reverse logistics with numerous customer returns also separates the failing firms who are unable to efficiently process returns and thus lose customer trust compared to businesses who invest in simplifying the customer's return experience. Notably, parcel carriers who adjust their own systems to integrate with customer's supply chains are well-positioned to adapt to the rapidly shifting online marketplace. The e-business logistics of minimal lead times, geographically-widespread delivery systems, and shifting logistics flow are great challenges that any successful Internet company will need to address.

Do a SWOT analysis and have a discussion on it. and provide a small summary.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!