The sight drew tuts of disgrace and shakes of the head from passers-by.
Communications Information systems Note that many of these technologies are used across the value chain. For example, information systems are seen in every activity. Similar technologies are used in support activities.
In addition, technologies related to training, computer-aided design, and software development frequently are employed in support activities.
To the extent that these technologies affect cost drivers or uniqueness, they can lead to a competitive advantage. Rather, one value chain activity often affects the cost or performance of other ones. Linkages may exist between primary activities and also between primary and support activities.
Consider the case in which the design of a product is changed in order to reduce manufacturing costs. Suppose that inadvertantly the new product design results in increased service costs; the cost reduction could be less than anticipated and even worse, there could be a net cost increase.
Sometimes however, the firm may be able to reduce cost in one activity and consequently enjoy a cost reduction Parknshop logistic operation another, such as when a design change simultaneously reduces manufacturing costs and improves reliability so that the service costs also are reduced.
Through such improvements the firm has the potential to develop a competitive advantage. Analyzing Business Unit Interrelationships Interrelationships among business units form the basis for a horizontal strategy.
Such business unit interrelationships can be identified by a value chain analysis. Tangible interrelationships offer direct opportunities to create a synergy among business units.
For example, if multiple business units require a particular raw material, the procurement of that material can be shared among the business units. This sharing of the procurement activity can result in cost reduction. Such interrelationships may exist simultaneously in multiple value chain activities.
Unfortunately, attempts to achieve synergy from the interrelationships among different business units often fall short of expectations due to unanticipated drawbacks. The cost of coordination, the cost of reduced flexibility, and organizational practicalities should be analyzed when devising a strategy to reap the benefits of the synergies.
Outsourcing Value Chain Activities A firm may specialize in one or more value chain activities and outsource the rest. The extent to which a firm performs upstream and downstream activities is described by its degree of vertical integration.
A thorough value chain analysis can illuminate the business system to facilitate outsourcing decisions. To decide which activities to outsource, managers must understand the firm's strengths and weaknesses in each activity, both in terms of cost and ability to differentiate.
Managers may consider the following when selecting activities to outsource: Whether the activity can be performed cheaper or better by suppliers. Whether the activity is one of the firm's core competencies from which stems a cost advantage or product differentiation.
The risk of performing the activity in-house. If the activity relies on fast-changing technology or the product is sold in a rapidly-changing market, it may be advantageous to outsource the activity in order to maintain flexibility and avoid the risk of investing in specialized assets.
Whether the outsourcing of an activity can result in business process improvements such as reduced lead time, higher flexibility, reduced inventory, etc.
The Value Chain System A firm's value chain is part of a larger system that includes the value chains of upstream suppliers and downstream channels and customers. Porter calls this series of value chains the value system, shown conceptually below:Logistics is generally the detailed organization and implementation of a complex operation.
In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. The resources managed in logistics can include physical items such as food, materials, animals, equipment.
logistics can be optimized for operations, education, and training. This publication is intended to provide guidance to JFCs and staffs, their subordinate component commands. Garrick Chan. Supply Chain and Logistics. Location Hong Kong Industry Retail. connections. View Garrick Chan’s full profile.
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Experience. Head of Supply Chain and Logistics ParknShop - A division of AS Watson Title: Supply Chain and Logistics. Strategies and Challenges of Internet Grocery Retailing Logistics 3 customers can preload a recipe onto the web page and with a simple click place an order for the ingredients of that recipe.
MGT Operations, Logistics and Supply Chain Management Assignment 3 ParkNShop is a retailer and supermarket chain in Hong Kong and Macau. In a series of internal workshops, ParkNShop is known for offering hundreds of promotions with deep savings. In Operation Desert Storm, operational logistics system sustained the major ground offensive into Iraq.
In each war, the operational logistics system had its limitations. During the execution of Operation Overlord in World War II and Operation Chromite in.