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Supply Chain Management Design & Simulation Online

Supply Chain Case Studies

SCM Globe comes with a library of case studies that explore COMMERCIAL , HUMANITARIAN , and MILITARY supply chains. When you purchase an account you have access to all the case studies and their simulations.

The case studies range from relatively simple beginning cases like Cincinnati Seasonings , to quite challenging advanced cases such as Zara Clothing Company , or Nepal Earthquake Disaster Response .  Case studies are laboratories where you apply what you learn in lectures and readings to solve supply chain problems in highly realistic simulations. Each case has a " CASE STUDY CONCEPT " showing the supply chain principles and practices highlighted in that case.

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A map of Spain with a logistics hub circled in green and a manufacturing facility in red. There are arrows pointing at it and lines extending out. There is a data window to the sides.

Case studies presently available in the online library are shown below. You are welcome to use any or all of them. You can also create your own case studies, or we can create them for you. Cases are shown in the three categories. As you work with these cases you will gain an intuitive understanding of supply chain dynamics, and develop the analytical skills for designing and managing real supply chains.

People new to SCM Globe should start with the  Cincinnati Seasonings case study . Work individually at first, not in groups. Each person needs their own account. Do the three challenges shown in the online introduction to Cincinnati Seasonings. That's how you'll learn to use the software, and how to use simulations to analyze and design supply chains. Then you will be ready to work in groups or work on more advanced cases.  Click on the case studies below to see a description and introduction to each case.

Commercial Supply Chain Case Studies

A map of New York with supply chain routes highlighted in blue.

Collaborative Supply Chains

A satellite picture of the Luanda port in Angola showing high lighted routes between locations.

S&J Trading Company – Angola

A screenshot from SCM Globe zoomed out to a scale which shows the 'Java Furniture Company' global supply chain superimposed on a map of the world.

Java Furniture Company – Indonesia

Picture of a map from the SCM Globe app showing the suppply chain route from Cincinnati to Louisville.

Cincinnati Seasonings

Map of a supply chain of the Roman Empire that supplied olive oil to Rome

Supply Chains of the Roman Empire

Silk Road in SCM Globe Simulation

Ancient Silk Road – First Global Supply Chain

A screenshot of the Zara supply chain showing how products flow from factories to stores

Zara Clothing Company Supply Chain

screenshot of Fantastic Corporation's global supply chain

Fantastic Corporation – Global Supply Chain

Simulation on SCM Globe showing Unexpected Disruptions

Fantastic Corporation – Unexpected Disruptions

Humanitarian supply chain case studies.

A map of Dresden with blue and orange lines on it.

Disaster Response Supply Chains: Flooding Scenario

Map of Nepal Earthquake humanitarian facilities

Nepal Earthquake Disaster Response Supply Chain

A satellite image of the Hama Military Airport and the western part of Hama with a route highlighted in blue.

Humanitarian Supply Chains: Syria Evacuation Scenario (CIV and MIL)

Military supply chain case studies.

Satellite picture of the Japanese campaign in Burma.

Burma Campaign – 1944 Invasion of India

Map of Eastern Europe and Russia showing blue supply routes lines, and icons for combat units in Battle of Smolensk 1941

Battle of Smolensk – 1941 Invasion of Russia

Alexander the Great Banner

Alexander the Great Needed Great Supply Chains

New case studies.

New cases are added based on projects we do with instructors, students, and supply chain professionals. Here are the new supply chain models in the library:

  • Local and Sustainable Supply Chains – Blue Ocean Cooperative
  • Aerospace Manufacturing Cluster – Rockford IL
  • Hyderabadi Biryani – Paramount Restaurant 
  • Western Desert War – May 1941
  • Russian Logistics for the Invasion of Ukraine

Interactive Supply Chain Case Studies

Every case study has a main theme or concept that it illustrates. You will be challenged to use knowledge acquired in lectures and readings as well as your own real-world experience to expand and re-design the supply chains in these case studies.

In the commercial supply chain cases you need to improve and expand the supply chains to support new stores and still keep operating costs and inventory as low as possible. In cases that deal with humanitarian or military missions you need to create supply chains to deliver the right supplies to the right locations when they are needed, and do so at a reasonable cost.

A satellite picture of the Luanda port in Angola showing high lighted routes between locations.

We are glad to provide a  free evaluation account  to instructors, students and supply chain professionals interested in exploring SCM Globe simulations — click here to request an account —  Get Your Free Trial Demo  

See SCM Globe pricing for Academic and Business versions of the software.

The best case to start with is Cincinnati Seasonings . After working through the three challenges presented in the online introduction to this case you will be ready to handle further challenges in this case or move on to more advanced cases. Get a quick introduction to working with case studies in “ Working with Case Studies “.

Screenshots of the Cincinnati Seasonings case study in the SCM Globe application.

As problems are found in the simulations, you make decisions about how to fix them. Make changes to your supply chain model in the Edit screen. Then go to the Simulate screen and run a simulation to see the results of your changes. Depending on the changes you make, your supply chain simulation runs for additional days and other problems arise. As you address these problems you see about how supply chains work. Apply what you learn in readings and and lectures plus your work experience to solve the problems you encounter.

Keep improving your supply chain model until you get the simulation to run for 30+ days. Then download your simulation results and create a monthly Profit & Loss Report plus KPIs (as shown below). This provides an objective basis for evaluating the merits of different supply chain solutions.

spreadsheet reporting template showing monthly profit and loss for Cincinnati Seasonings

Monthly Profit & Loss Reports identify areas for improvement. They help you improve your supply chain to keep it running for 30 days and also lower operating costs and inventory levels. You can work on lowering the carbon footprint of your supply chain too. These are the challenges you address in SCM Globe, and they are the same challenges people face when managing real supply chains. What works well in the simulations will also work well with actual supply chains. Skills you develop in working with the simulations are directly transferable to the real world.

NOTE: You can run simulations for longer than 30 – 60 days, but there is usually no reason to do so. This is because most companies do not run their supply chains unchanged for longer than 30 days at a time. They use a 30 day S&OP ( sales and operations planning ) cycle and these simulations correspond to that monthly S&OP cycle. These simulations focus on the tactical realities of operating a supply chain from one month to the next, and finding what works best.

Accessing the Online Library of Case Studies

As shown in the screenshots below, logon to your account and access the case study library from your Account Management screen. Click on the “View Library” button (arrow 1) in upper right corner of the Account Management screen. In the Library screen you see a list of available supply chain case studies; click “ Import ” to load a selected case study into your account; give the imported case a Name , and click “ My Account ” to go back to your Account Management screen.

You are welcome to import any or as many of the supply chain models in the library as you wish. Once you have a copy of a supply chain model in your own account you can make any changes you want to it.

Screenshot of Account Screen and library screen

In Account Management, you “ Create a New Supply Chain ” or work with an existing supply chain by clicking the “ Edit ” button (arrow 2) next to the existing supply chain you want to work on. You can also upload copies of supply chain models sent to you by other SCM Globe users (arrow 3) , and check your account expiration date (arrow 4) .

Use the Default Values or Enter New Data

When you load any of the case study supply chain models from the SCM Globe library, they come with default numbers already plugged in. You can either accept the defaults or do some research to find more current data. This data (like data and prices everywhere) changes all the time.

Look for data on products, facilities and vehicles that are used in your supply chain and see what their specifications and costs are. Costs can vary widely in different parts of the world. Go to websites of commercial real estate brokers in cities of interest and see what you can find out about rent costs:

  • for cities in North America start with www.cityfeet.com
  • and for cities in other parts of the world start with  www.knightfrank.com

Metric System of Weights and Measures

In the case studies all weights, volumes, distances and speeds are expressed using the metric system. The metric system is used around the world in every country except three: Liberia; Myanmar; and the United States. So it is good for supply chain professionals to feel comfortable with the metric system.

Register on SCM Globe for Access to all Supply Chain Simulations

Click the blue "Register" button on the app login page, and buy an account with a credit card or PayPal (unless you already have one). Then scan the "Getting Started" section, and you are ready to start. Go to the SCM Globe library and click "Import" next to the supply chain models you want.

supply chain management case study

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supply chain management case study

Walmart Supply Chain: Building a Successful Integrated Supply Chain for Sustainable Competitive Advantage

  • Case Studies

Introduction

The global business landscape has witnessed an increasingly fierce competition, pushing companies to seek effective strategies to maintain and enhance their competitiveness. Among these strategies, the role of supply chain capability stands out as a key factor in driving success. A well-optimized supply chain not only ensures efficient delivery and cost-effectiveness but also provides companies with a competitive advantage in the market. In this context, Walmart, the world’s largest retailer, has demonstrated a highly successful and integrated Walmart supply chain, propelling its growth and dominance in the retail industry.

This case study aims to delve into the significance of supply chain capability for enhancing a company’s competitiveness and how it serves as a competitive advantage for companies. Additionally, we will explore the imperative need for supply chain redesign in the global economy to adapt to the challenges of the modern era of globalization. Focusing on Walmart’s exemplary supply chain practices, the purpose of this case study is to analyze the features of its successful integrated supply chain while identifying relevant issues in the context of the current globalized market.

[Read More: Rivian: Navigating Supply Chain and Operational Challenges and Embracing Growth ]

Walmart’s Supply Chain: Integrated Supply Chain Success

Data-driven success factors.

In the realm of modern supply chain management, data-driven strategies play a pivotal role in enhancing a company’s competitiveness. Walmart’s remarkable success as the world’s largest retailer can be attributed to its astute utilization of data analysis and advanced technologies within its integrated supply chain. This section delves into the key data-driven success factors that have propelled Walmart’s supply chain to the forefront of the retail industry.

[Read More: ERP Master Data: A Guide to Improve Quality & Governance ]

Role of Data Analysis through Barcode Scanning and Point-of-Sale Systems

Data analysis is at the core of Walmart’s supply chain prowess. The company has implemented sophisticated barcode scanning and point-of-sale systems to collect real-time data from its stores. By employing these technologies, Walmart gains valuable insights into customer buying behavior, sales trends, and inventory levels. The ability to analyze this data enables the retail giant to make informed decisions on product procurement, inventory management, and demand forecasting.

Efficient Supply Chain Practices: Automated Distribution Centers and Computerized Inventory Systems

Automation is a key component of Walmart’s efficient supply chain practices. The company has strategically invested in automated distribution centers, streamlining the flow of products from manufacturers to stores. These automated facilities not only optimize the handling and movement of goods but also enable faster order fulfillment and replenishment. Additionally, computerized inventory systems provide Walmart with accurate and up-to-date information about stock levels, allowing for precise inventory control and reducing the risk of stockouts or excess inventory.

supply chain management case study

Utilizing Walmart’s Own Trucking System and Cross-Docking Logistics

Another critical factor contributing to Walmart’s supply chain success is the utilization of its private trucking system and cross-docking logistics. By maintaining its own trucking fleet, Walmart gains greater control over transportation and delivery schedules, leading to improved efficiency and timely product replenishment. Furthermore, the adoption of cross-docking logistics techniques has enabled Walmart to minimize the need for intermediate storage, leading to reduced handling costs and faster product movement through the supply chain.

[Read More: The Ultimate Guide to Contract Logistics: What You Need to Know ]

Information Technologies Driving Efficiency

In Walmart’s journey towards becoming a global leader, information technologies have played a pivotal role in driving efficiency within the integrated Walmart supply chain. The retail giant has strategically adopted various IT initiatives to optimize its operations, enhance collaboration with suppliers, and achieve real-time inventory targeting. These technologies have contributed significantly to Walmart’s supply chain success, allowing them to maintain a competitive edge in the retail industry.

Supply Chain Digitalization Assessment

Collaborative Planning, Forecasting, and Replenishment (CPFR)

One of the key information technologies that have bolstered Walmart’s supply chain efficiency is the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR). This system facilitates seamless communication and coordination between Walmart and its supply chain partners, including suppliers and distributors. By sharing real-time sales data and demand information, CPFR enables accurate forecasting and demand planning, minimizing information distortion, and promoting synchronized inventory replenishment. The CPFR program has been instrumental in enhancing overall supply chain visibility and efficiency, allowing Walmart to respond promptly to fluctuations in demand and supply, reducing stockouts, and optimizing inventory levels.

Vendor-Managed Inventory (VMI) and Its Benefits

Walmart’s adoption of Vendor-Managed Inventory (VMI) has been another critical information technology-driven initiative. Through VMI, Walmart empowers its suppliers to take on the responsibility of managing their inventory stored in Walmart’s warehouses. By granting suppliers access to real-time inventory data and sales information, Walmart facilitates efficient inventory tracking and replenishment. This hands-on approach by suppliers results in streamlined inventory management, reduced delays in replenishment, and lower stockouts. The VMI model has proved particularly advantageous for Walmart due to its vast product range and numerous suppliers, making inventory management complex and costly if managed solely by the retailer.

[Read More: Vendor Managed Inventory: A Comprehensive Guide ]

Leveraging RFID Technology for Real-Time Inventory Targeting

RFID (Radio Frequency Identification) technology has been a game-changer in Walmart’s pursuit of real-time inventory targeting and enhanced supply chain visibility. By employing RFID tags on products, Walmart can track the movement of inventory throughout the supply chain in real-time. RFID enables accurate and automated inventory tracking, reducing the need for manual counting and minimizing errors in inventory management. The technology also provides crucial details, such as production time, location, and expiry dates of goods, allowing for efficient inventory targeting and better control over inventory turnover. RFID technology has been instrumental in Walmart’s cost reduction efforts, ensuring optimal stock levels while avoiding overstocking and unnecessary inventory holding costs.

Achieving Competitive Advantage through Strategy

Walmart’s competitive strategy: “everyday low prices” (edlp).

Walmart’s competitive advantage is deeply rooted in its strategic focus on offering “Everyday Low Prices” (EDLP) to its customers. The EDLP strategy revolves around providing high-quality products and services at the lowest possible prices, ensuring that customers can benefit from affordable prices every day. This approach sets Walmart apart from its competitors and has been instrumental in establishing the company as a dominant force in the retail industry.

Implementing the “Everyday Low Costs” (EDLC) Policy through Direct Procurement

To support its EDLP strategy, Walmart follows an “Everyday Low Costs” (EDLC) policy in its supply chain management. One of the key elements of the EDLC policy is the direct procurement of items from suppliers, eliminating intermediaries in the process. By procuring directly from manufacturers, Walmart can negotiate and understand their cost structure, enabling them to make informed purchasing decisions and obtain the best prices for their products.

Walmart’s emphasis on direct procurement is further bolstered by the use of technology and information systems. The company has implemented a central database, store-level point-of-sale systems, and a satellite network, along with barcodes and RFID technology as previously mentioned. These technologies allow Walmart to gather and analyze real-time store-level information, including sales data and external factors like weather forecasts, to enhance the accuracy of purchasing predictions. This integration of information technology helps Walmart optimize its procurement process and maintain low costs throughout the supply chain.

Utilizing Information Systems for Better Inventory Management

Effective inventory management is critical for Walmart to sustain its competitive advantage through the EDLP strategy. The company relies on information systems and information technology (IT) capabilities to control inventory levels efficiently. By capturing customers’ demand information, Walmart can identify popular products and stock them adequately, leading to an overall reduction in inventory.

One notable example of Walmart’s successful utilization of information systems is its collaboration with Procter & Gamble (P&G) through the Collaborative Planning, Forecasting, and Replenishment (CPFR) program. This program links all computers of P&G to Walmart’s stores and warehouses, allowing for efficient replenishment orders based on real-time inventory needs. Additionally, Walmart’s Retail Link , developed in the early 1990s, serves as another vital IT application for storing data, sharing it with vendors, and aiding in shipment routing assignments.

supply chain management case study

Challenges and Opportunities

Supplier cooperation and collaboration.

Walmart’s supply chain success can be attributed to its strong relationships with suppliers, but achieving and maintaining supplier cooperation and collaboration is not without challenges. Let’s explore the challenges and opportunities in this area:

Challenges in Obtaining Suppliers’ Cooperation

  • Supplier Resistance to Direct Procurement: Walmart follows an “Everyday Low Costs” (EDLC) policy by directly procuring items from suppliers, eliminating intermediaries. However, some suppliers may be reluctant to cooperate with this approach as it can disrupt existing distribution channels and potentially reduce their bargaining power.
  • Complex Supplier Networks: With thousands of suppliers across various product categories, managing diverse supplier networks can be challenging. Each supplier may have different production and delivery schedules, making coordination difficult.
  • Balancing Profit Margins: As Walmart emphasizes low prices, maintaining a balance between cost savings and ensuring suppliers’ profitability can be a delicate task. Suppliers may resist pressure to reduce prices further to maintain their margins.

Opportunities for Enhanced Supplier Cooperation and Collaboration

  • Establishing Transparent Communication Channels: Walmart can create transparent and open communication channels with its suppliers to foster better cooperation. Clear communication regarding demand forecasts, inventory levels, and potential disruptions can help suppliers plan their production and deliveries more efficiently.
  • Supplier Incentive Programs: Introducing incentive programs that reward suppliers for meeting certain performance metrics, such as on-time delivery or cost reduction, can motivate suppliers to actively collaborate and improve their supply chain capabilities.
  • Collaborative Planning, Forecasting, and Replenishment (CPFR): Walmart can leverage technology, such as CPFR, to share real-time sales data and demand forecasts with its suppliers. This collaborative approach allows suppliers to align their production and inventory management with actual market demand, reducing the bullwhip effect and optimizing the supply chain.
  • Sharing Inventory Visibility: Providing suppliers with access to inventory data, including stock levels and sales information, can help them plan production and deliveries more effectively. This visibility can prevent stockouts and overstocking issues.
  • Long-term Partnerships: Building long-term strategic partnerships with key suppliers can create a sense of mutual commitment and trust. By assuring consistent business over an extended period, Walmart can foster stronger relationships and supplier loyalty.

[Read More: 3 Types of Supplier Segmentation Matrix You Can Use to Classify Suppliers ]

Importance of Collaboration to Enhance Supply Chain Efficiency

  • Reducing Lead Times: Effective collaboration with suppliers can help shorten lead times by streamlining production and transportation processes. Faster lead times enables Walmart to respond quickly to changes in demand, reducing the risk of stockouts.
  • Efficient Inventory Management: Collaborative efforts with suppliers enable better inventory planning and management. Suppliers can adjust production based on actual demand, reducing excess inventory and associated costs.
  • Supply Chain Flexibility: Collaboration fosters agility and adaptability in the supply chain. When Walmart and its suppliers work together closely, they can quickly adjust to market changes, supply disruptions, or new opportunities.
  • Cost Reduction: Improved supplier collaboration can lead to cost-saving opportunities. By eliminating unnecessary intermediaries and optimizing production and transportation, overall supply chain costs can be minimized.

supply chain management case study

The Incentives Alignment Issue

In any supply chain, maintaining a balance of profit margins among different parties is essential for efficient collaboration and sustained success. However, achieving incentives alignment can be challenging, and this issue is particularly relevant in the case of Walmart supply chain. Addressing misalignment of interests between Walmart and its suppliers is crucial for optimizing the overall performance of the supply chain and ensuring long-term success. The following points highlight the incentives alignment issue faced by Walmart:

1. Balancing Profit Margins Among Different Supply Chain Parties:

Walmart’s success is attributed to its ability to offer high-quality products and services at the lowest affordable prices. To achieve this, Walmart employs various cost-cutting strategies, such as direct procurement from suppliers and streamlined distribution practices. While these strategies help Walmart maintain competitive prices, they can create challenges for suppliers who may face pressure to lower their own profit margins to meet Walmart’s demands. This misalignment of profit margins can lead to strained relationships and potentially impact the overall efficiency of the supply chain.

2. Misalignment of Interests Between Walmart and Suppliers:

Walmart’s size and market dominance can lead to power imbalances in supplier relationships. Suppliers may feel compelled to comply with Walmart’s demands to maintain access to its large customer base. However, this can lead to situations where suppliers may not have enough leverage to negotiate favorable terms, impacting their own profitability. As a result, suppliers may be less inclined to invest in innovations or improvements that would benefit the supply chain as a whole.

3. Conflict Between Inventory Growth and Sales Growth:

Walmart faced inventory growth issues in the past, with the inventory growth rate outpacing the sales growth rate. This can be indicative of conflicting incentives between Walmart and its suppliers. Suppliers may prioritize producing and delivering more inventory to ensure they meet Walmart’s demands, even if the sales growth does not keep up with the increased inventory. This misalignment can lead to excess inventory, increased carrying costs, and potential stockouts.

4. The Need for a New Triple-A Supply Chain:

Addressing the incentives alignment issue requires a fundamental shift in the supply chain strategy. Lee (2004) proposed the concept of a new Triple-A supply chain for Walmart and other companies in the 21st century. The Triple-A supply chain emphasizes agility, adaptability, and alignment to create a sustainable competitive advantage. Achieving alignment among all participating parties is crucial to optimize supply chain performance and ensure that risks and rewards are distributed fairly.

The Triple-A Supply Chain Approach

In today’s competitive business landscape, companies like Walmart recognize that a successful supply chain is not just about having a fast and cost-effective system. To maintain a sustainable competitive advantage and address the challenges of the global economy, it is essential to redesign supply chains that incorporate agility, adaptability, and alignment. This section explores the concept of the Triple-A Supply Chain Approach, which emphasizes these three key qualities that an ideal supply chain should possess: agility, adaptability, and alignment of interests among all participating parties.

The Three Qualities of an Ideal Supply Chain

Agility for quick and cost-effective responses:.

Agility refers to a supply chain’s ability to respond quickly and cost-effectively to sudden changes in demand, supply, and external disruptions. In the fast-paced business environment, companies must be able to adapt swiftly to fluctuations in customer preferences, market conditions, and unforeseen events. For Walmart, agility has been a critical factor in maintaining its leadership position in the retail industry. The company’s investments in technology and supply chain optimization strategies have allowed them to optimize inventory levels and respond rapidly to changing customer demands, ensuring the availability of products while minimizing inventory costs.

Adaptability to Handle Changes in Demand and Supply:

Supply chains should be adaptable and flexible enough to handle variations in demand and supply patterns. Demand forecasts can be uncertain, and unexpected supply chain disruptions may occur, making adaptability a vital quality. Walmart’s focus on omnichannel and various fulfillment options, such as in-store pickup and ship from store, demonstrates their commitment to adaptability. By utilizing multiple channels, Walmart can cater to diverse customer preferences, ensuring an uninterrupted flow of products to meet demand.

Alignment of Interests among All Participating Parties:

One of the significant challenges in supply chain management is ensuring alignment of interests among all parties involved, including suppliers, manufacturers, distributors, and retailers. Walmart’s scale and dominance in the retail market have allowed them to establish strong relationships with vendors, enabling strategic partnerships with vendors who can meet their high-volume demands. Additionally, Walmart’s adoption of Vendor Managed Inventory (VMI) allows suppliers to manage their own inventory stored in Walmart’s warehouses. This collaboration aligns the incentives of suppliers and Walmart, streamlining inventory management and ensuring timely replenishment.

supply chain management case study

In conclusion, Walmart’s integrated supply chain has been a crucial factor in the company’s global dominance and sustained competitive advantage. By strategically investing in technology and optimizing its supply chain, Walmart has managed to maintain its position as the world’s largest retailer with over $572 billion in revenue in 2022.

Walmart’s success serves as a compelling example of the importance of a well-integrated supply chain in achieving and sustaining competitive advantage in the global market. As businesses continue to navigate the complexities of the 21st-century economy, building and enhancing supply chain capabilities will remain a critical aspect of ensuring sustainable growth and profitability. By prioritizing agility, adaptability, and alignment, companies can follow in Walmart’s footsteps and position themselves for continued success in the dynamic and ever-evolving global marketplace.

References:

  • Lee H.L. (2004): The triple A supply chain. “Harvard Business Review”, Vol. 82, No. 10, pp. 102-112. 
  • Nguyen T.T.H. (2017): Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. “Journal of Economics and Management”, Vol. 29(3), pp. 102-117

About the Author – Dr. Muddassir Ahmed

Dr. Muddassir Ahmed is the Founder & CEO of SCMDOJO. He is a global speaker , vlogger , and supply chain industry expert with 19 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East, and South East Asia in various Supply Chain leadership roles. Dr. Muddassir has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and has founded the leading supply chain platform SCMDOJO to enable supply chain professionals and supply chain teams to thrive by providing best-in-class knowledge content, tools, and access to experts. You can follow him on  LinkedIn ,  Facebook ,  Twitter  or  Instagram.

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Professionals in supply chain management use various methods to determine how to improve the performance of supply chain operations. Analysis of case study is certainly one of the most popular methods for people from business management background. In order to accelerate the learning, this article has gathered 20+ most sought-after supply chain case studies, analyzed/categorized them by industry and the findings are presented.

supply chain management case study

Boeing wants to encourage more flight frequency and direct route using a smaller capacity aircraft. Then they decide to outsource many things such as the design, testing and production of key components to key industrial partners and try to reduce number of components that go to assembly. The ultimate goal is to finish the final production process within 3 days. Airbus takes a bit different marketing approach. They want to utilize high capacity airplane to help airlines drive the operating cost down. They decide to selectively outsource the production of parts and keep the design and production of key components in-house.

supply chain management case study

Supply Chain of fashion industry involves a time based competition. Many customers have the unique product needs but a competition is very fierce because of the low barriers of entry. Many new players try to offer specialized products to customers all the time. This section features the supply chain case studies of H&M, Benetton, Zara and Adidas. –  H&M  aims to be the price leader in the fashion market.In order to materialize its vision, H&M tries to eliminate the middlemen in various stages of supply chain and consolidate the buying volumes. Product design is also the central part of its strategies. They don’t try to follow the high fashion designs but try to adopt the street trends which are easier to produce. At the end of the day, they can bring products to market within 2-3 weeks. –  Benetton , in contrast, chooses to have a full control of its production but allow its licensees to operate the stores so they can focus on production and quality control. The reason is that they would like to create the worldwide brand awareness. For fast moving products, they use the production facilities in Europe. Asian suppliers will perform production for standardized products. –  Zara  is very famous for its time based strategy. In order to launch a new product within 15 days, Zara uses a small lot production. A new product will be tested in pilot stores. If product sales is good, a larger batch will be ordered. Otherwise, remaining products will be removed from the shelves and sold as mark-down in other stores. This creates the perception among consumers that Zara’s products are unique and you have to take it while stock lasts. Vertical integration contributes to the success of Zara, they own the majority of its production facilities and stores (this is the reason why Quick Response can be effectively implemented). Its automated distribution centers are strategically located between the center of populations so products are delivered to stores quickly. Zara also works with Air France, KLM Cargo and Emirates Air in order that they can coordinate directly with the airlines to make the outbound shipments to its stores and bring back some raw materials and semi-finished materials with return legs. The last supply chain case study in the fashion retailing industry is  Adidas . In order to cope with changing customers’ demand, they decide to undertake Mass Customization strategy. The whole idea is to develop, market and deliver the product variety that most customers will find what they want. The first steps towards mass customization is to strategically offer the product choices. Too few variations will disappoint a customer but too many variations will simply postpone a buying decision. After that, Adidas asks the same key suppliers to produce custom components in order to achieve the economy of scale. In order to compensate a long waiting time, Adidas uses air freight or courier service. The reason why they can do this is that customized products are sold directly to customers so they have the higher profit margin to compensate the higher transportation cost. Supply chain strategy of the fashion retailing industry is summarized as below,


supply chain management case study

FMCG industry is typically the products sold to customers at a low cost and will be completely consumed within 1 year. The nature of this industry is the short product life cycle, low profit margin, high competition and demand fluctuation. This section will present the case studies of P&G, Unilever and Coca-Cola respectively. Forecasting and new product introduction has always been the issues for many FMCG companies,  P&G  is no exception. To cope with this, P&G conducts a merchandise testing at the pilot stores to determine the customer’s response to new product before the launch. The result is that the forecast accuracy is improved because a demand planner has an additional source data to make a better decision. Moreover, products can be shipped to stores in-time then lost sales is minimal. –  Unilever  also feels that the competition in FMCG industry has significantly increased. They have to launch the new products on regular basis but the forecasting of new product is difficult. So they create a better classification of new products (base, relaunch, repack, new) using a regression model to identify potential forecast errors for each type of new product. –  Coca-Cola  doesn’t really have many stock keep units when compared with other companies in the same industry. However, products go to over 2.4 million delivery points through over 430 distribution centers. Managing transportation at this scale is the absolute challenge. In order to streamline the delivery, Coca-Cola implemented a vehicle routing software. The reason is that is the software vendor has a very good relationship with Coca-Cola’s legacy ERP software vendor. Moreover, the vendor has a solid connection with the university who can help to develop the algorithm that fits in with the business’ needs. The result is that transportation planners at each distribution center can use the new tool to reduce travelling time/distance on daily basis.

supply chain management case study

Lean manufacturing concept has been implemented widely in the automotive industry so the case studies about lean manufacturing is very readily available. Due to the increasing competition in the automobile industry, car manufacturers have to launch a new model to the market more frequently. This section will show you how BMW manages a long term planning, how Ford applies lean concept to the new product development and how Hyundai manages the production planning and control. –  BMW  uses a 12-year planning horizon and divides it into an annual period. After that, they will make an annual sales forecast for the whole planning horizon. After the demand is obtained, they divide sales into 8 market and then select the appropriate production sites for each market, considering overall capacity constraints and total cost. As you may notice, this kind of a long range planning has to be done strategically. –  Ford  calls its product development system as “work streams” which include the body development, engine development, prototyping and launch process . The cross-functional team are the experts and their roles are to identify key processes, people, technology necessary for the development of new prototype. Each work stream team is responsible to develop timeline of each process. Detailed plan is usually presented on A3 sized paper. They clearly identifying current issues they are facing with supporting data, drawings and pictures. On weekly basis, they organize a big group meeting of all work stream team to discuss the coordination issues. –  Hyundai  deploys a centralized planning system covering both production and sales activities across the facilities and functional areas. They develop a 6-month master production plan and a weekly and a daily production schedule for each month in advance. During a short term planning (less than one month), they pay much attention to the coordination between purchasing, production and sales. Providing a long term planning data to its suppliers help to stabilize production of its part makers a lot.

supply chain management case study

Life cycle of technology products is getting shorter and shorter every day. Unlike FMCG, the launch of a new product in the hi-tech industry requires the investment in research and development quite extensively. Then, a poor planning will result in a massive loss. This section will cover JIT and outsourcing by Apple Inc, Supply Chain Risk Management by Cisco System, Technology Roadmap by Intel, Supply Chain Network Model by HP, Mass Customization by Dell and Quality Management by Sam Sung. Steve Jobs invited the Tim Cook to help to improve  Apple’s Supply Chain  in 1998. Jobs told Cook that he visited many manufacturing companies in Japan and he would like Cook to implement the JIT system for Apple. Jobs believed that Apple’ supply chain was too complex then both of them reduced the number of product availability and created 4 products segment, reduced on hand inventory and moved the assembling activities to Asia so they could focus on developing the breathtaking products that people wanted to buy. –  Cisco Systems  would like to be the brand of customer choice so they implement a very comprehensive supply chain risk management program by applying basic risk mitigation strategies, establishing appropriate metrics, monitoring potential supply chain disruptions on 24/7 basis and activate an incident management team when the level of disruption is significant. –  Intel ‘s new product development is done by the process called Technology Roadmap. Basically, it’s the shared expectations among Intel, its customers and suppliers for the future product lineup. The first step to prepare the roadmap is to identify the expectations among semiconductor companies and suppliers. Then they identify key technological requirements needed to fulfill the expectations. The final step is to propose the plan to a final meeting to discuss about the feasibility of project. Some concerning parties such as downstream firms may try to alter some aspects of the roadmap. Technology Roadmap allows Intel to share its vision to its ecosystem and to utilize new technology from its suppliers. –  HP ‘s case study is pretty unique. They face with a basic question, where to produce, localize and distribute products. Its simple supply chain network model is presented below,

supply chain management case study

From this example, only 3 possible locations result in 5 different way to design the supply chain. In reality, HP has more production facilities than the example above so there are so many scenarios to work with. How should HP decide which kind of a supply chain network configuration they should take to reduce cost and increase service to customer? The answer is that they use the multi-echelon inventory model to solve the problem. –  Dell  is one of the classic supply chain case studies of all time. Many industries try to imitate Dell’s success. The key ingredients of Dell’s supply chain are the partnership with suppliers, part modularity, vendor managed inventory program, demand management and mass customization. Also, you can find the simplified process map of Dell’s order-to-cash process as below,

–  Sam Sung  has proven to be the force to be reckoned with in the hi-tech industry. The secret behind its supply chain success is the use of Six Sigma approach. They studied how General Electric (GE), DuPont and Honeywell implemented six sigma. After that, they have created their own implementation methodology called DMAEV (define, measure, analyze, enable, verify). They use the global level KPI to ensure that each player in the same supply chain is measured the same way. Also, they utilize SCOR Model as the standard process. Any process changes will be reflected through an advance planning system (APS).

supply chain management case study

The last industry covered here is the general merchandise retailing industry. The critical success factor of this industry is to understand the drivers of consumer demand. Four case studies will be presented, namely, 7-11, Tesco, Walmart, Amazon and Zappos. –  7/11  is another popular case study in supply chain management. The integration of information technology between stores and its distribution centers play the important role. Since the size of 7/11 store is pretty small, it’s crucial that a store manager knows what kind of products should be displayed on shelves to maximize the revenue. This is achieved through the monitoring of sales data every morning. Sales data enables the company to create the right product mix and the new products on regular basis. 7/11 also uses something called combined delivery system aka cross docking. The products are categorized by the temperature (frozen, chilled, room temperature and warm foods). Each truck routes to multiple stores during off-peak time to avoid the traffic congestion and reduce the problems with loading/unloading at stores. –  Tesco  is one of the prominent retail stores  in Europe. Since UK is relatively small when compared with the United States, centralized control of distribution operations and warehouse makes it easier to manage. They use the bigger trucks (with special compartments for multi-temperature products) and make a less frequent delivery to reduce transportation cost. Definitely, they use a computerized systems and electronic data interchange to connect the stores and the central processing system. –  Wal-Mart ‘s “Every Day Low Prices” is the strategy mentioned in many textbooks. The idea is to try not to make the promotions that make the demand plunges and surges aka bullwhip effect. Wal-Mart has less than 100 distribution centers in total and each one serves a particular market. To make a decision about new DC location, Walmart uses 2 main factors, namely, the demand in the proposed DC area and the outbound logistics cost from DC to stores. Cost of inbound logistics is not taken into account. There are 3 types of the replenishment process in Wal-Mart supply chain network as below,

In contrary to general belief, Wal-mart doesn’t use cross-docking that often. About 20% of orders are direct-to-store (for example, dog food products). Another 80% of orders are handled by both warehouse and cross dock system. Wal-Mart has one of the largest private fleet in the United States. The delivery is made 50% by common carriers and 50% by private fleet. Private fleet is used to perform the backhauls (picks up cargoes from vendors to replenish DCs + sends returned products to vendors). Short-hauls (less than one working day drive) is also done by the a private fleet. For long-hauls, the common carriers will be used. There are 2 main information system deployed by Wal-Mart. “Retail Link” is the communication system developed in-house to store data, share data and help with the shipment routing assignments. Another system is called “Inforem” for the automation of a replenishment process. Inforem was originally developed by IBM and has been modified extensively by Wal-Mart. Inforem uses various factors such as POS data, current stock level and so on to suggest the order quantity many times a week. Level of collaboration between Wal-Mart and vendors is different from one vendor to the other. Some vendors can participate in VMI program but the level of information sharing is also different. VMI program at Wal-Mart is not 100% on consignment basis. –  Amazon  has a very grand business strategy to “ offer customers low prices, convenience, and a wide selection of merchandise “. Due to the lack of actual store front, the locations of warehouse facilities are strategically important to the company. Amazon makes a facility locations decision based on the distance to demand areas and tax implications. With 170 million items of physical products in the virtual stores, the back end of order processing and fulfillment is a bit complicated. Anyway, a simplified version of the order-to-cash process are illustrated as below,

Upon receipt of the orders, Amazon assign the orders to an appropriate DC with the lowest outbound logistics cost. In Amazon’s warehouse, there are 5 types of storage areas. Library Prime Storage is the area dedicated for book/magazine. Case Flow Prime Storage is for the products with a broken case and high demand. Pallet Prime Storage is for the products with a full case and high demand. Random Storage is for the smaller items with a moderate demand and Reserve Storage will be used for the low demand/irregular shaped products. Amazon uses an propitiatory warehouse management system to make the putaway decision and order picking decision. After the orders are picked and packed, Amazon ships the orders using common carriers so they can obtain the economy of scale. Orders will arrive at UPS facility near a delivery point and UPS will perform the last mile delivery to customers. Amazon is known to use Sales and Operations Planning (S&OP) to handle the sales forecast. Anyway, this must be S&OP process at product family/category level. To compete with other online retailers,  Zappos  pays much attention to the way they provide the services to customers. In stead of focusing on the call center productivity, Zappos encourages its staff to spend times over the phone with customers as long as they can so they can fully understand the customer’s requirements. They also upgrade the delivery from 3 days to 1 day delivery in order to exceed customer expectation.

supply chain management case study

All case study demonstrates that supply chain management is truly the strategic initiatives, not merely a cost cutting technique. Leading companies have a very strong customer focus because almost all of initiatives are something to fill the needs of customers. Relationship management is the unsung hero in supply chain management. It’s the prerequisite to the success of every supply chain. And at the end of the day, it comes down to the quality of supply chain people who analyze, improve and control supply chain operations. – See more at: http://www.supplychainopz.com/2014/04/supply-chain-management-case-study.html#sthash.MrnrGsyY.dpuf

Supply Chain Minded is a very active and fast growing online community in Supply Chain for Planning, Sourcing, Manufacturing, Delivery and Reverse Logistics professionals. The Supply Chain Minded community aims to inform and connect professionals active in Supply Chain, Purchasing, Manufacturing, Warehousing, Transport, Distribution; Reverse Logistics, Service Logistics, Lean & Six Sigma, 3PL.

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Share these free Supply Chain Management case studies with your class 

Engage your students with real-world case studies that provide insights into supply chain practices, challenges, and opportunities. Share each case study with your students by simply copying and pasting the activity page URL into your learning management system (LMS).

Case 1: Rising Health Care Costs And The Role Of Outsourcing And Offshoring In The U.S. Health Care Sector

In this case study, your students will identify factors that are driving the health care costs higher in the United States than in peer countries. They will also discuss advantages and disadvantages of emerging trends in supply chain management such as adopting outsourcing in health care. After reading the case, they are encouraged to create an argument in favor of or against the view that health care offshoring is a threat to the U.S. health care industry.  See case study . 

  • Case 2: McDonald’s Reinvents Itself Again

In this case study, your students will identify factors that are affecting demand management in the fast food industry and evaluate the reinvention strategy that McDonald’s has used to keep their fingers firmly on the pulse of their international customer base. Students will also be asked to advice McDonald’s with regards to future trends and the changes it should consider. After reading the case, they are encouraged to research areas in which the company plans to reinvent itself in the coming years, particularly in light of the appointment of its new CEO and the COVID-19 pandemic. See case study

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During the last decade, a cascading series of unpredictable events—including earthquakes, volcanic eruptions, catastrophic storms, disease outbreaks and armed conflicts—has exposed deep fragilities in global supply chains. These events served as initial alarm bells for much greater challenges to come.

Intricately woven supply chains were built on concepts such as just-in-time manufacturing and designed to reduce labor and operating costs. Over the years, companies relentlessly optimized their supply chains to serve markets with relatively predictable supply and demand patterns. However, recent and unprecedented events have shown how these choices have created inflexible supply chains that are brittle under stress.

Breaking a single link in a globalized supply chain can have a ripple effect, impacting customers thousands of miles away from the point of disruption. “Supply chain issues” has become a catchphrase for economic dislocation.

“In recent years, supply chain has gone from the background, something people did not think about, to a boardroom-level topic,” says Rob Cushman, Senior Partner, IBM Supply Chain Transformation. “It’s a concept that people have had very painful personal experiences with. And that’s why thinking about supply chain is pivoting from cost to being about resilience and agility, and ultimately driving growth.”

Cost savings

By deploying a cognitive supply chain, IBM reduced supply chain costs by USD 160 million   and built in more resilience and agility

100% order fulfillment 

Even during the peak of the covid-19 pandemic, IBM maintained a 100% order fulfillment rate of its products to clients

The worldwide reach, size and complexity of its supply chain organization represented a significant challenge as IBM began exploring transformation strategies for delivering a differentiated customer experience to promote customer loyalty and growth. IBM employs supply chain staff in 40 countries and makes hundreds of thousands of customer deliveries and service calls in over 170 nations. IBM also collaborates with hundreds of suppliers across its multi-tier global network to build highly configurable and customized products to customer specifications.

Previously, the IBM supply chain ran on legacy systems spread across different organizational silos, making information sharing slow and incomplete. Employees also performed much of their work on spreadsheets, which impeded collaboration and real-time data transparency.

However, at the same time the IBM supply chain was re-thinking business processes and transforming its technology platforms, IBM was making major strides in AI, cloud, data fabric, IoT, edge computing and other tools. “We saw the advances IBM was making in all these new technologies,” says Ron Castro, Vice President of IBM Supply Chain. “So, we asked, ‘Why not leverage our own technology to move our own supply chain forward?’”

“The principle behind why we embarked on this journey was to answer the question, ‘How can we best react to disruptions to manage resiliency and our client experience?’” says Castro. “We needed to identify disruptions quickly, analyze the data, get insights and decide on the best course of action.”

IBM supply chain management set out a bold vision to build its first cognitive supply chain. The aim was to have an agile supply chain that extensively uses data and AI to lower costs, exceed customer expectations, ruthlessly eliminate or automate non-value add work and exponentially improve the experience of supply chain colleagues.

IBM Consulting® was brought in at the beginning to help develop the processes required to drive the transformation. “We consider ourselves ‘Client Zero’ for IBM Consulting,” says Debbie Powell, IBM Digital Supply Chain Transformation Leader. “We have the technology to do what we need to do. It’s the culture and the processes where change was needed. We also realized that a lot of our knowledge was tribal and often depended on one person. We needed to digitize and democratize knowledge to support decision-making throughout the organization.”

IBM Consulting helped the IBM supply chain team use Design Thinking methods to plan its digital transformation and move from sequential to continuous planning. “We put a lot of effort into agility and a cultural shift to empower people and adjust workflows in a controlled way,” says Matthias Gräfe, Director of IBM Supply Chain Transformation. “We went from a top-down approach to identifying personas from the bottom up, the people that actually make the decisions.”

“Successful digital transformation required us to challenge traditional ways of working that were held sacred for decades and win the hearts and minds of supply chain colleagues for change to stick,” says Takshay Aggarwal, Partner, IBM Supply Chain Transformation.

At a high level, the IBM supply chain digital transformation revolves around building sense-and-respond capabilities. This was accomplished by democratizing data and automating and augmenting decisions achieved by combining cognitive control tower, cognitive advisor, demand-supply planning and risk-resilience solutions. “We view the cognitive control tower as the single source of truth where you have access to all the data and it helps advise the best course of action,” says Castro. “It also helps gather insights from the information quickly across the end-to-end supply chain.”

The cognitive control tower is powered by the  IBM® Cognitive Supply Chain Advisor 360  Solution, which runs on  IBM Hybrid Cloud  and on  Red Hat® OpenShift® on IBM Cloud  software. Cognitive Advisor 360 enables real-time, intelligent supply chain visibility and transparency. It also senses and responds to changes in demand as they happen and simplifies the automation of supplier management.

The system uses IBM Watson® technology to enable natural language queries and responses, which accelerates the speed of decision-making and offers more options to correct issues. “I can ask—in natural language—about part shortages, order impacts, risks to revenues and trade-offs,” says Cushman. “There’s a button that recommends actions to solve issues — that’s what Watson does. It’s augmented intelligence so we empower people with better information to make data-driven decisions very quickly.”

“With the cognitive supply chain, we have the benefit of bringing in all these data from legacy systems and internal and external sources, as well as unstructured data, to apply advanced analytics and different elements of AI,” says Castro. “And since the system responds to natural language, think about the power of being able to extract data and get insights and recommendations without having to be an expert in a legacy system or an ERP platform.”

The IBM cognitive supply chain technology architecture also includes  IBM Edge Application Manager ,  IBM Maximo® Visual Inspection  and  IBM Track and Trace IoT —an integrated stack of solutions that connect data end-to-end across the supply chain. “Our procurement, planning, manufacturing and logistics data are connecting in close to real time,” says Cushman. “That’s how we can share inbound information from suppliers, manufacturing status updates with our external manufacturing partners and delivery information with our customers.”

“We’ve added demand sensing, so that the solution pulses the market for changes in demand, predicting the future. We’ve also embedded a cloud-based risk management tool called Resilinc into our procurement and inbound parts management process,” says Cushman. “It essentially uses AI to crawl the web and if there is a disruption, we can take action quickly to secure a second supply source.”

On a minute-by-minute basis, one of the biggest advantages of IBM’s cognitive supply chain is that it provides employees with immediate access to the information they need to read and mitigate disruptions. “There is unbelievable power that comes from taking lots of disparate data and putting it where people can see and understand it,” says Cushman.

“The real-time, single-view of the truth increases the velocity of decisions and leverages rapid response,” says Castro. “It helps us develop ‘what-if’ scenario analysis from a planning perspective all the way through to the execution team and suppliers.”

In fast-moving, real-world situations, quick, informed decisions provide a competitive advantage. “In the past, a major disruption—such as the closing of a major airport—would take days for us to understand the immediate impacts. With our current solution, we have ‘what-if’ capability that brings this analysis down to minutes,” says Powell. “In a supply constrained environment, whoever gets the information first wins.”

Since its cognitive supply chain became operational, IBM has saved USD 160 million related to reduced inventory costs, optimized shipping costs, better decision-making and time savings. “When mitigating a part shortage, it used to take four to six hours per part number,” says Powell. “We’ve brought that down to minutes and made further improvements to seconds.”

“Where’s my stuff?” is a common question in the supply chain industry. Finding an answer can entail hours of phone calls, emails and ERP queries across different geographies. “We’ve built a solution where you can log in and enter an order and you’ll have an answer in about 17 seconds,” says Cushman. “That was an enormous pivot and a powerful change in how we do business.”

By using its cognitive supply chain platform, the IBM supply chain team is also able to create new capabilities much faster. “Years ago, when we started this journey, we needed a long, looping roadmap with one or two years required for major capability upgrades,” says Castro. “With this digital enterprise, we now have teams that complete deployments in two or three weeks. We’ve moved to much more agile development.”

Despite dislocations caused by the COVID-19 pandemic, IBM fulfilled 100% of its orders by using its cognitive supply chain to quickly re-source and re-route parts as necessary. “During the last two years, the IBM supply chain did not fall behind. We met our commitments. Everyone else was screaming supply chain issues and we’re shipping products,” says Daniel Thomas, IBM Business Optimization Manager and Chief of Staff. “We delivered on our promises during the height of the disruptive era we live in.”

“Guaranteed supply is important, but many of our clients are also looking for predictability of supply,” says Castro. “The tools we have now help us address both issues. They enable us to manage the demand side to meet the right client expectations.”

“We have a responsibility to inspire younger supply chain leaders who will keep the IBM supply chain at the cutting edge and beyond for years to come,” says Aggarwal. “People entering the work force today have different experiences than previous generations. They are digital natives and expect a consumer-grade experience when managing their work. As we embarked on our journey, we actively engaged them in designing workflows and digital capabilities. There were trials and tribulations and we had multiple failures in design and rollout. Architecting the cognitive supply chain, and learning from failures and successes, made our young leaders champions of the cognitive supply chain and constant innovators of new capabilities.”

“IBM is the only global services company with its own multibillion-dollar supply chain, and we’ve transformed it into a data-driven architecture to drive our business. There’s a richness of experience that we bring to client conversations because we’ve done this work for ourselves,” says Cushman. “It’s all about how a supply chain delivers a differentiated customer experience to enable stickiness and growth.”

“The collaboration between IBM Systems and IBM Consulting teams to transform our own business and demonstrate the power of exponential technologies in supply chain has been one of our finest moments as a company,” says Cushman. “We look forward to sharing our real-world experience and learnings with our worldwide community of customers, partners and clients.”

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IBM is an information technology company based in Armonk, New York. Founded in 1911, the company offers hardware, software and services in cloud computing, AI, commerce, data and analytics, IoT, mobile and cybersecurity, as well as business resiliency, strategy and design solutions. IBM has a global workforce of more than 280,000 employees serving clients in over 175 countries through IBM Consulting, IBM Software and IBM Infrastructure.

To learn more about the IBM solutions featured in this story, please contact your IBM representative or IBM Business Partner.

Build AI-enabled, sustainable supply chains that prepare your business for the future of work, create greater transparency and improve employee and customer experiences

IBM Sterling Supply Chain Insights with Watson provides visibility across the entire supply chain.

Sourcing minerals responsibly with blockchain technology

© Copyright IBM Corporation 2022. IBM Corporation, New Orchard Road, Armonk, NY 10504

Produced in the United States of America, July 2022.

IBM, the IBM logo, ibm.com, IBM Consulting, IBM Watson and Maximo are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at  ibm.com/legal/copyright-trademark .

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Machine Learning in Supply Chain: Definition, Uses, Case Studies

APRIL 4, 2023

We also break down several case studies of companies currently using machine learning in their supply chain processes. For example , if your customers buy large quantities of a certain product, machine learning software will be able to identify the surge in demand and feed the information back to the inventory management systems.

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Lionel Racing: An Omni-Channel Case Study

JULY 19, 2016

For example , “many of our Direct-to-Consumer [drop ship] customers want everything branded as if the order is coming from them even though it’s coming from our facility,” explained Gemereth. The post Lionel Racing: An Omni-Channel Case Study appeared first on Talking Logistics with Adrian Gonzalez.

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What are Dark Stores, and How do they Work? [+ case studies]

NOVEMBER 3, 2021

Here we look at how dark stores operate, how they’re profitable and why they’re on the rise – along with four examples to showcase dark stores in action. The Gorillas example shows how potential regulations to protect workers and how those workers are treated will also figure into the mix.

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BASF Video Case Study: The Value of Real-Time Freight Visibility

MAY 3, 2018

In addition to improved customer satisfaction, Wehrle shared these examples : The data we’re getting has been hugely successful. The post BASF Video Case Study : The Value of Real-Time Freight Visibility appeared first on Talking Logistics with Adrian Gonzalez. Benefits of Real-Time Freight Visibility.

TMS for SMB: A Case Study with Carhartt

OCTOBER 19, 2016

Carhartt is a great example . At the end of the day, the best approach is making the effort to truly understand and address the unique needs and characteristics of every company — both today and where they’re aiming to be in the future. Gibson highlighted in her presentation, Carharrt is experiencing rapid growth.

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Cross Docking 101: What, Why and How? [with case studies]

SEPTEMBER 23, 2021

Time to deliver goods Cross docking can add additional time to the delivery process compared to, for example , a direct shipment strategy that involves the direct transfer to the end customer. Three case studies Cross docking strategies are used around the world and across different industries. Who uses cross docking?

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Redesign to Improve Value: A Case Study of a Supply Chain Leader

JUNE 21, 2014

For example , we discovered that transportation and duties are 5x the expense of labor and overhead. For example , people want prestige beauty from the US, Europe or Japan. Take another example – few people know where their TV was made, but the buyer cares greatly about the reliability of that product. It wasn’t that easy.

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How Food Manufacturing Software Drives Profit [w Case Studies]

AUGUST 11, 2020

For example Stock Age by Stock Keeping Unit (SKU) can be cross-referenced with warehouse location to see which ingredients are sitting on the shelf and need to be moved (perhaps with a local promotion or price change). CASE STUDY 1: Gourmet Organic Herbs. CASE STUDY 2: Brandini Toffee.

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Trying to Push Content Above the Noise

JANUARY 2, 2024

Many discussions focus on driving improvement through planning, yet, when I take the client case studies on the websites of leading planning technologies and map the intersection of operating margin and inventory turns, I do not see metric improvement, sustained performance, or an increase in value. It is just accepted.

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8 Examples of Kanban in Lean Manufacturing

MARCH 2, 2022

Here we give you eight real-world examples of how businesses use Kanban, a popular lean tool that’s helped companies in a huge range of sectors improve efficiency – especially those in the manufacturing industry. If you already know what Kanban is and just want the case studies , scroll down! Software development is an example .

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Ensemble Forecasting: The Difference Between Staying Ahead or Falling Behind

AUGUST 19, 2024

In this article, we delve into the benefits of employing ensemble modeling for demand forecasts, backed by examples and data. Example : Consider a retail company that experiences sudden demand spikes during holiday seasons. For example During the COVID-19 pandemic, demand patterns underwent rapid and unprecedented changes.

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Make Room for Leadership to Drive S&OP

MAY 13, 2024

For example , in the research, I found maturity in Cadbury, DuPont, and Gilette processes. One of my favorite case studies was Campbells in 2014. See the World Kitchen case study in the Agility Report. This research, completed in 2006, was during the transformation of multi-national to global supply chains.

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Client Case Study Video Interview

APRIL 19, 2019

Client Case Study Video Interview with Lucid Motors, Menlo Park, CA. For example , certain areas were not quite to our liking and some of the formatting we wanted to change and you were quick to do that and it made our senior management very happy. Q: Can you give me one example of how the system has saved you time and effort ?

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The Green Corridor: Saving Whales in California – A Case Study in Regional Collaboration

The Logistics & Supply Chain Management Society

AUGUST 19, 2022

The Green Corridor: Saving Whales in California – A Case Study in Regional Collaboration. This story is a great example of how, collaboration can happen in our fractured and decentralized commercial environment. The Green Corridor: Saving Whales in California – A Case Study in Regional Collaboration.

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[PODCAST] The Growing “Influence” of Content Marketing in the Supply Chain

GlobalTranz

MARCH 3, 2020

Business and Marketing Resources Marketing Logistics Services: A Discussion on Getting Attention Online Listen to the Podcast Example of an Effective Transportation Management Case Study View Case Study How Industrial Companies Can Pivot to Inbound Organizations & Increase Customer Experience Listen.read More.

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Surgery Center Case Study: Less Time at Computer, More Time in OR

FEBRUARY 6, 2019

We now know, on a real-time basis, whether a contract has expired, for example . The post Surgery Center Case Study : Less Time at Computer, More Time in OR appeared first on Hybrent. In addition, Hybrent ensures we’re staying in compliance on contracts. Ready to Update Your Supply Chain? Request a Demo.

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Understanding the Profitability of Omnichannel Retail is a Problem

NOVEMBER 20, 2023

But one thing you notice as you go to omnichannel software vendor’s web sites and examine customer case studies , the case studies may talk about retailers growing their revenues by 100% or more, but none talk about how much profitability grew. These new order fulfillment paths allowed retailers to rapidly grow sales.

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Examples of How Supplier Quality Management System Implementations Pay Off

JUNE 11, 2015

We conclude our series on supplier quality management (SQM) today with a look at some case studies and examples of benefits derived from the application of a supplier quality management system. Examples and Case Studies from the Implementation of a Supplier Quality Management System.

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A Case Study in Reverse Logistics Optimization!

Supply Chain Game Changer

NOVEMBER 23, 2018

“This has been an excellent example of how ModusLink can deliver measurable value for our computing and hardware clients,“ explains ModusLink’s Vice President of Global Client Development. The post A Case Study in Reverse Logistics Optimization! Learn more at [link]. Check out Reverse Logistics and the Power of Your 3PL!

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JAGGAER Webinar with Accenture Strategy and Attijariwafa Bank Case Study: Accelerating Trust in Banking – Internal, Suppliers and Customers

OCTOBER 22, 2020

A case study presentation by Youness Taghrichte provided a good example of how JAGGAER customers in the financial services sector are tackling these issues. Attijariwafa Bank has successfully implemented a source-to-contract solution with the JAGGAER ONE platform.

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Tackling Item Complexity

JANUARY 9, 2019

In Figure 1, I share a case study from a client engagement. One of the most read case studies written for my first book, Bricks Matter, is a case study on managing item complexity. It is frequently requested, so I wanted to reshare this case study with my readers. Governance.

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Elevating The Voice of the Supply Chain Contrarian

JUNE 21, 2023

Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. For example , Monster Beverages beats Coca-Cola and PepsiCo, while Celanese outperforms Dow Chemical. While companies talk digital, the projects follow traditional supply-centric paths.

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Melitta: Collaborating for an Improved Forecasting Process

NOVEMBER 2, 2020

For example , within an audit workflow multiple stakeholders across various regions can apply detailed market knowledge specific to their regions to the demand baseline forecast for a more accurate result. Read the full Melitta case study below. Read Case Study . Michael Youssef.

New Case Study on Alcatel-Lucent Sustainable Procurement Best Practices

JULY 9, 2015

Case Study . We are pleased to publish a new case study detailing Alcatel-Lucent’s sustainable procurement program. Download the Case Study from the library. Long-time EcoVadis client, Alcatel-Lucent, has done all this and more.

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Unlocking the Value of Global Supply Chain: the Case Studies

JULY 7, 2014

For example , they make it easier for customers to locate products during shopping, pick the products, checkout, bringing products back home and install the furniture. Their unique selling points are products with good design at lower prices. To drive cost down, Ikea shifts some of their activities to customers or self service operating model.

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Cost to Serve Case Study that was Off the Scale! – with Steven Thacker

JULY 21, 2020

A Great Example . Let us watch the video below: Related articles on this topic have appeared throughout our websites, why not check them out? Robobyrne: Cost To Serve Lesson. Supply Chain Secrets: What is Cost to Serve? – Best Regards, Rob O’Byrne. Email: [email protected]. Phone: +61 417 417 307.

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Case Study: How Generac Power Systems Cut Millions from Its Global Transportation Spend

CH Robinson Transportfolio

MARCH 28, 2018

For example , Generac works with our global forwarding and port services experts to optimize containerized freight moving from the West Coast to Chicago and beyond. The post Case Study : How Generac Power Systems Cut Millions from Its Global Transportation Spend appeared first on Transportfolio.

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The Green Corridor: To Realise the Circular Economy Dream – Reach Out to Your Community

NOVEMBER 22, 2022

In one example , Crust Group in Singapore provides a Southeast Asian example of a cross industry “circular economy” partnership. In my compost example , I save on buying fertilizer (along with all the processing, packaging and transportation associated with it). This is the challenge that industries face all around the world.

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The Critical Path: Navigating Supply Chain Efficiency in the Oil Industry

JUNE 27, 2024

Crisis Management Strategies for Unforeseen Disruptions Developing robust crisis management frameworks ensures that companies can respond swiftly and effectively to supply chain disruptions.

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Optimization and Execution: How Manufacturing can lead the Industry Renaissance

DELMIA Quintiq

JUNE 9, 2020

Companies that were unable to meet these challenges have been left behind (for example , in High Tech think Blackberry and Compaq). In numerous case studies , manufacturers have found that the limited visibility to shop floor activities and poor planning led to problems with over-scheduled machinery and equipment.

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Achieving the Value of Digital Twins

JUNE 5, 2023

While the promise is clear, and we see a growing number of case studies proving the benefits of the approach, many companies struggle to create and maintain digital twins. I encourage you to listen to the webinar replay to hear more about these examples . So, are they achievable, from a practical perspective?

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Strong Supply Chains Required For an Economic Rebound: Six Steps To Take

APRIL 15, 2020

No doubt about it, we are characters in a supply chain case study searching to define a new normal. Today, we find ourselves in the middle of a risk management case study . An example is a focus on moving and buying ventilators without an assessment of the availability of critical parts and skilled therapists.

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Dynamic Fulfillment 101: Achieving Multiple Objectives for Better Margins

OCTOBER 17, 2023

Plus, you’ll get to check out real-world examples of major retailers who leverage this technology every day – for good reason. In the example below, you can see three different fulfillment options for an order, each with its own ship cost, labor cost, and expected revenue. Real-World Examples Looking for a feel-good fulfillment story?

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supply chain management case study

Powering up resilience to mitigate supply chain disruption

When supply chain disruptions strike, grocery shelves go empty. Here’s how one company’s new system is keeping them full.

  • Call for Change
  • When Tech Meets Human Ingenuity
  • A Valuable Difference
  • Related Capabilities

Call for change

One of the world’s largest food and beverage companies has hundreds of brands under its belt. But amid global supply chain disruption , labor shortages and pandemic-fueled shifts in consumer demand, getting those products onto store shelves was becoming more difficult.

The company’s service level, measured by Case Fill Rate (CFR), was only reaching about 84%—some 11-12 percentage points below pre-pandemic performance. So, for example, a retailer looking to stock 100 bottles of a product may only receive 84 at the expected time of delivery.

With orders delayed or incomplete and shelves empty or understocked, the company was concerned about losing market share—and the trust of consumers. The company needed to rethink how it could effectively and efficiently handle supply chain management. So the company turned to Accenture to help identify the heart of the issue and collaborate on potential solutions.

supply chain management case study

When tech meets human ingenuity

Accenture helped the company build a roadmap to a more resilient system. They implemented a  control tower  to provide visibility across all operations. A new Sales and Operations Execution (S&OE) team was tapped to handle short-term issues so the supply chain planning team could focus on long-term strategy.

The teams found ways to make existing tools and data more useful and responsive, while adding new processes and governance to fill in the gaps. By connecting existing analytics dashboards to an ERP system and other data sources, the S&OE team could create predictive reports. By adding proactive alerts that addressed potential issues up to six weeks out, they could also make short-term adjustments to save valuable time and effort—and to actively plan for disruptions.

supply chain management case study

Supply chain control tower – visibility to value

Learn how you can make your supply chain networks more customer-centric, sustainable and agile

A valuable difference

With end-to-end visibility, more efficient organization and a set of new routines and best practices to connect disparate teams, supply chain network issues are now much more manageable. The results are evident in the numbers: The company saw its case fill rate pass 90%—a level it had not achieved in more than two years. Soon, it was finishing its month with record volumes. 

The greater resiliency built into the new system means the company is prepared for what’s ahead and can react more efficiently to future supply chain disruption. In reimagining its operations, the company is orchestrating the change it needs to deliver customers what they expect. Now, retailers are more likely to get the products they want, when they want them—keeping shelves full and consumers happy.

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Reimagining tomorrow's supply networks to positively impact business, society and the planet.

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Build a secure, responsive supply chain network that anticipates and adapts to disruptions, market changes and customer demands.

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The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM

The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM

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Book description

30 up-to-date case studies illuminate every aspect of modern supply chain management

• Risk management, analytics, global supply chain issues, and much more

• Innovative processes, technologies, strategies, and tactics

• An indispensable resource for both students and practitioners

This casebook brings together 30 focused cases addressing virtually every aspect of supply chain management, from procurement to warehousing, strategy to risk management, IT to supplier selection and ethics. A global team of contributors presents key challenges in industries ranging from pharmaceuticals to fashion and previews issues ranging from the “limits of lean” to the potential of 3-D printing.

Cases vary in length and complexity, offering maximum flexibility to both instructors and readers; a convenient table provides fast access to specific topics. Qualitative cases are supported by relevant discussion questions and sample responses;  quantitative cases are supported by completed numerical solutions, and, where applicable, associated spreadsheets.

Table of contents

  • About This eBook
  • Copyright Page
  • Dedication Page
  • Acknowledgments
  • About the Author
  • Objectives of the Book
  • Organization of the Book
  • Salvation Army: Origins and Purpose
  • United States Southern Territory and Salvation Army–Dallas ARC
  • Discussion Questions
  • Products and Markets
  • Vertically Integrated Supply Chain
  • The Manufacturing Process
  • Investment in Collaborative Planning, Forecasting, and Replenishment (CPFR)
  • Stanford Blood Center: “Give Blood for Life”2
  • A Snapshot of the SBC-SUMC Supply Chain in 2006
  • Company Background
  • Financial Risk Management Background
  • The Automobile Industry in China
  • Toyota China’s Production Planning and Demand Management
  • The Company
  • BESSI Leather Goods
  • The Central Role of Planning
  • The Challenge
  • Appendix 7-1 Gantt Chart of the Fashion Product Collection Definition (from Grid Definition to Start of Production)
  • Appendix 7-2 Fashion Product Collection Definitions
  • Appendix 7-3 Demand Forecasting Process
  • Case 9. Multi-Echelon Inventory Decisions at Jefferson Plumbing Supplies: To Store or Not to Store?
  • Introduction
  • The Indian Pharmaceutical Industry
  • The Indian Pharmaceutical Supply Chain
  • Upstream Supply Chain for High-Range Cements
  • Appendix 13-1: Baseline Data and Three Solutions Offered by UPS
  • Organization Background
  • Organizational Structure and Facility Layout
  • Operations Management

Supply Chain Management

  • Two Different Perspectives
  • Overview of Fair Trade
  • The Fair Trade Supply Chain
  • Criticism of Fair Trade
  • Starbuck’s Fair Trade Policy
  • Company Overview
  • The Rebranding Process
  • Background for the Cooperative and the Industry
  • Transaction Costs Approach
  • COAPEL Supply Chain
  • Process Reforms
  • Organizational Operations
  • Case 24-1: Helmets
  • Case 24-2: Puffs
  • Case 24-3: Sirop
  • Case 24-4: Blower
  • Jacket’s Decisions
  • The Meeting
  • Plant Visit
  • Bangalore: City Statistics1
  • Collection of Waste
  • Role of Non-Governmental Organizations (NGOs)
  • About the Company
  • The Power Sector in India
  • Cloud Computing
  • Supply Chain Structure of CEL
  • Appendix 27-1: CEL’s Balance of Plants Business in the Power Sector
  • Appendix 27-2: Trends in Installed Generating Capacity of Electricity Nonutilities in India from 1970–71 to 2010–11
  • Appendix 27-3: Business Process of CEL Sourcing
  • Spare Parts Supply Chain Management at IGNYS Automotive
  • Industry Background
  • Introduction of the Case Companies
  • Search for an International Partner
  • Joint Business Development and Complementary Service Offering
  • Joint Project Illustrations
  • Mutual Benefits from International Logistics Partnership
  • Classification of Risks
  • General Supply Chain Resilience Model
  • European Case Study
  • Appendix 30-1
  • Financial Times Press

Product information

  • Title: The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM
  • Author(s): Chuck Munson
  • Release date: June 2013
  • Publisher(s): Pearson
  • ISBN: 9780133367300

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How supply chain helps an electronics manufacturer connect customers

A global electronics company diversifies its manufacturing locations to increase its supply chain resilience.

  • 1. Better question
  • 2. Better answer
  • 3. Better working world
  • How EY can help

The better the question

How can a supply chain deliver electronic devices on demand?

A US-based electronics manufacturer reduces supply chain risk to keep its customers tuned to all the right channels.

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Discover how EY's supply chain team can help your business redefine its end-to-end supply chain and operations to support your enterprise objectives.

The electronics industry is facing steep supply chain challenges, reaching all the way back to the raw materials that make up those tiny components keeping people connected in real time. 

A leading electronics supplier that provides mobile devices to consumers and public entities was experiencing shortfalls due to overreliance on materials and manufacturing in Asia. A perfect storm of factors, including the COVID-19 global pandemic and widespread geopolitical instability, has weakened the global supply chain, and cross-border labor is no longer guaranteed.  

Transportation delays, both in the air and on the water, are extending production lead times. Country-specific tax and trade regulations are also threatening shipping timelines and slowing product delivery dates for customers.   

“Corporate leaders at this electronic device company recognized that supply chain resilience has become an urgent business imperative for their organization,” said Jim Morton, Executive Director for the Ernst & Young LLP Business Consulting supply chain practice. “With most of their customer base in the US, they recognized that they needed to diversify their sourcing and production options as effectively as possible, which meant varying manufacturing locations to complement their global portfolio.” 

Leaders engaged an integrated EY team experienced in   supply chain modeling and optimization , tax and trade. The team developed a comprehensive plan that would diversify manufacturing and alleviate the organization’s long-term supply chain risk. 

EY teams’ extensive tax experience, deep understanding of global incentives and locations, and keen geopolitical business perspective showed the client how it can continue to help consumers access critical mobile devices and carve a sustainable new path forward for its business.

Diversified manufacturing locations reduce supply chain risk

An integrated digital model evaluates multiple operation sites to yield informed decisions.

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The Geostrategic Business Group can help translate geopolitical insights into business strategy to help manage political risk. Find out how.

With its deepest manufacturing roots in Asia, the mobile device provider needed to diversify its production footprint. Supply chain disruptions, longer ocean transport times, region-specific trade restrictions and frequent unexpected delays were pushing leaders to consider adding manufacturing sites closer to the US – the location of their corporate headquarters and most of their customer base. 

Research from EY teams shows that 64% of companies have re-shored some elements to improve sustainability. In addition, 42% of companies said that ensuring sustainable and diverse sourcing was a priority. With data such as these in mind, the company turned to an EY cross-practice team for a strategy to augment core operations in more accessible and stable locations, reducing its overall supply chain risk while maintaining existing operations in Asia and elsewhere. Faced with a daunting and costly business decision, leaders needed assurance they could diversify their manufacturing and still procure the right materials, maintain quality standards, and deliver reliable products to meet urgent user needs.  

The EY team assessed and designed a more diverse supply chain network with the company’s global business in mind.

Supply chain optimization was done based on a computerized model to assess the global supply chain, mapping raw materials to flow of goods, to distribution centers and finally to customer locations. The model evaluated current networks against future state options, assessing millions of site variables rapidly to provide leadership with the informed perspective they needed. The EY digital model brought an integrated view of the tax considerations inherent in ramping up manufacturing in new sites and countries, including customs duties, direct and indirect tax implications and country-specific regulations. The EY Geostrategic Business Group provided clarity around government labor, trade policies and local laws to further optimize recommendations, blending speed and cost to enable on-demand inventory.

"With recent supply chain disruption, trade wars and geopolitical uncertainty, this global electronics leader needed an integrated supply chain model so they could successfully diversify their manufacturing portfolio, avoid production delays, and address country-specific issues,” said Morton. “The EY supply chain optimization model helped them make more informed decisions and select their new manufacturing site in North America.” 

End-to-end supply chain analysis was conducted by tracking the company’s highest-priority devices. Validated data inputs were primed and transitioned from a flow-constrained model to a demand-driven model. The analysis evaluated economic value added with the future state footprint, insourcing vs. outsourcing manufacturing operations, tax considerations, skilled labor availability, geopolitical factors, ESG and carbon footprint impact, and the reduction of supply chain complexity.

A supply chain scorecard was created by the EY team to help leaders evaluate manufacturing sites more critically, assessing six key supply chain factors:

Graphic depicting steps completed in EY supply chain scorecard

Using the information gathered by the EY scorecard and digital assessment tools, the electronics company was able to ultimately select a new near shore location as its next manufacturing site. With this new location identified, EY teams will now work with the client to build out a roadmap to ramp up operations – including manufacturing providers, tax implications, geopolitical and regulatory guidance.  

The better the world works

Supply chain optimization keeps customers connected around the world

The forward-thinking EY supply chain model diversifies production and minimizes risk.

For a leading electronics provider that serves millions of customers around the world, keeping the organization’s supply chain operating smoothly is of paramount importance. Comprehensive EY supply chain modeling and optimization for this organization was designed with a future state supply chain in mind, so that the organization could vary its manufacturing portfolio, maintain current production quotas, mitigate risk and reduce excess product inventory by 27%.

The EY digital supply chain optimization model helped the electronics leader assess site locations across countries, geopolitical factors, trade implications, trade risk and tax regulations. The manufacturing site scorecard helped the company narrow down possible manufacturing sites and identify specific locations within countries that will help the organization further reduce their carbon emissions by 15%. The supply chain solution will also increase the organization’s efficiency by reducing the length of haul from production site to customer by 50%, and by lowering labor costs.  

 “Our integrated supply chain model, which included extensive tax experience and deep geopolitical business perspective across locations, provided this electronics powerhouse a solution that would help them diversify and de-risk their supply chain, allowing important communication devices to continue to be readily available worldwide,” said Morton.  

As the company works to ramp up its newest manufacturing location in North America, EY teams will be on board to help it conduct continued geopolitical and tax analysis, develop end-to-end supply chain analysis, establish timing, and evaluate distribution footprint expansion.

  • 50% reduction in the average length of haul from production to consumer
  • 27% reduction of excess product inventory in the pipeline
  • 15% reduction in future carbon emissions impact from transport 
  • Lower duty costs on products imported from the near shore location
  • Potential cost savings gained from business incentives provided by the near shore location

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Discover how EY's OpsChain Contract Management Solution can help your TMT business boost speed, visibility and trust along your digital value chain. Learn more.

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Taking the pulse of shifting supply chains

Since the onset of the COVID-19 pandemic, we have asked supply chain leaders annually about their efforts to overcome disruptions, mitigate risks, and build resilience in their operations. Our third and most recent survey shows that companies have made significant progress on measures that have been on their agenda since the start of the crisis, and that work has helped them weather supply chain challenges such as geopolitical disruption and the worldwide shortage of semiconductors.

About the authors

This article is a collaborative effort by Knut Alicke , Edward Barriball , Tacy Foster , Julien Mauhourat, and Vera Trautwein, representing views from McKinsey’s Supply Chain service line.

For example, over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks. And as companies shift their focus from visibility to improvements in demand and supply planning, supply chain digitization efforts are also entering a new phase.

However, most respondents admit that they still have significant work to do. An acute shortage of talent is holding organizations back in their efforts to accelerate digitization and implement advanced planning systems. And despite progress over the past 12 months, many companies still lack a comprehensive picture of the risks lurking deep inside complex multitier supply networks.

Data for this year’s survey were collected from 113 supply chain leaders worldwide, representing organizations from a broad range of industries. We ran the survey over a three-week period from the end of March to the middle of April 2022.

An acute shortage of talent is holding organizations back in their efforts to accelerate digitization and implement advanced planning systems.

Network resilience: Footprints on the move

The turbulence of the past two years has forced many organizations to address vulnerabilities in their complex, highly globalized supply networks. But the 2020 and 2021 supply chain pulse surveys revealed a significant gap between respondents’ ambition and their action. While many respondents said they wanted to diversify their supply base and boost in-region sourcing, the most common action in response to disruption was increases in the inventory of components and finished projects.

Bigger buffers and safety stocks are still seen as an important tool for supply chain resilience. Eighty percent of respondents told us that they increased their inventories during 2021; separate McKinsey analysis of almost 300 listed companies found that inventories increased by an average of 11 percent between 2018 and 2021, 1 S&P Global; Corporate Performance Analytics (CPA) by McKinsey (n = 293 listed companies). with the largest increases in the high-tech and commodity sectors. Some supply chain leaders have told us that they would have increased inventories even further if suppliers had been able to meet their requests.

While higher overall stock levels have become the norm, our survey suggests that companies are now looking for smarter ways to ensure resilience while keeping inventory costs under control. Seventy-one percent of respondents expect to revise their inventory policies in 2022 and beyond (Exhibit 1).

Companies are also reporting significant progress in longer-term strategies designed to increase network resilience. For example, 81 percent of respondents say that they have implemented dual-sourcing strategies during the past year, up from 55 percent in 2020. Forty-four percent of respondents, up from 25 percent the previous year (an even larger relative jump), say they are developing regionalized supply networks (Exhibit 2). Most respondents expect this momentum to continue. Sixty-nine percent of supply chain leaders told us that dual sourcing will continue to be relevant in 2022 and beyond, and 51 percent think the same about regionalization.

Overall, our survey shows that disruption has reshaped almost every supply chain. Ninety-seven percent of respondents say they have applied some combination of inventory increases, dual sourcing, and regionalization to boost resilience. Supply chain leaders believe that these efforts are paying off: Eighty-three percent told us that the footprint resilience measures they have taken over the past two years helped them minimize the impact of supply chain disruptions in 2022. For example, respondents from the commodity, consumer goods, and chemicals sectors were most likely to say that recent geopolitical disruption has not resulted in significant supply chain challenges this year; it is these industries that have focused most on structural changes such as nearshoring or network redesign. This situation may change as disruption continues, however, since data collection for our survey was conducted in the spring of 2022.

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Supply chain planning: a winning formula.

The volatility of the past two years has rigorously tested planning teams. Our survey reveals a formula, with three key ingredients, for resilient supply chain planning (Exhibit 3).

The first of those is visibility—companies can manage their supply chains only when they have a clear picture of each link. This is one area where organizations report significant recent progress: sixty-seven percent of respondents have implemented digital dashboards for end-to-end supply chain visibility. And those companies were twice as likely as others to avoid supply chain problems caused by the disruptions of early 2022.

The second ingredient is robust scenario planning, which can be seen in the planning counterpart to footprint redesign. Scenario planning has not been as widely adopted as visibility tools, with only 37 percent of respondents saying they had implemented the practice. These companies are also twice as likely as others to have avoided supply chain challenges this year.

An essential foundation to both supply chain visibility and effective scenario planning is comprehensive, accurate master data. Just over half the respondents tell us that the quality of the data in their supply chain planning systems were “sufficient” or “high,” suggesting that many companies still have room to improve their data collection and data management processes. High-quality data were associated with lower levels of recent supply chain disruption, although the effect was less pronounced than with visibility or scenario planning.

Digitization: Building on success

Previous surveys revealed that most companies ramped up their digital supply chain investments significantly over the past two years. Digital tools have been critical to companies’ efforts to improve the resilience of supply chain planning and execution.

That story continues in our most recent survey: in almost every sector, more than 90 percent of respondents report that they invested in digital supply chain technologies last year. Only two sectors—automotive and healthcare—report lower-than-expected investments. For the automotive sector, that finding hints at implementation delays, while healthcare companies may have slowed their pace of digitization following several years of rapid progress. Overall, just over 80 percent of respondents expect to make further investments this year and beyond.

However, the focus of these investments is changing significantly, a shift that can be attributed to the success of recent digitization projects. Last year, supply chain visibility was the top priority for companies, with 77 percent of respondents saying they were investing in this area. This year, with little more than half saying they have supply chain visibility systems in place, it has fallen to fourth place (Exhibit 4).

As companies address their visibility issues, digitization efforts are shifting to the next big challenge in supply chain management: capturing the demand signal. In this year’s survey, respondents report that the top two priorities for digital investments were demand and supply planning, cited by 74 percent and 69 percent, respectively. Fifty-eight percent of respondents are prioritizing inventory optimization.

Of the companies looking to invest in advanced planning systems, more than two-thirds say they expect to use the technology offered by their existing supply chain software provider. This is indicative of a continued market shift away from specialized point solutions for specific tasks and toward integrated end-to-end technology platforms. DIY isn’t dead in the supply chain sector, however: thirty-seven percent of respondents tell us that they expect to develop at least some supply chain software in-house, with most focusing on specific point-solutions such as visibility dashboards.

Digital talent remains a significant challenge for companies. In our 2020 survey, only 8 percent of respondents felt they had sufficient in-house talent to support their digital ambitions. By 2021, when many large digitization projects were in full swing, that number had dropped to just 1 percent. The situation has improved somewhat in the past year: in our latest survey, 10 percent of companies indicate they now have the talent they need. Respondents from the high-tech sector report the most progress in acquiring digital talent, with 20 percent more respondents than last year saying they had sufficient talent to meet their needs. Respondents from the automotive, aerospace, and defense sectors, by contrast, were much more likely than last year to report “limited” or “no” in-house digital supply chain talent.

The past two years have also seen a marked shift in companies’ approach to talent acquisition. In 2020, 70 percent of companies were building talent by reskilling their existing labor force. This year, the primary approach, used by 68 percent of companies, was outside hiring. That shift might reflect the dramatic increase in labor mobility that has occurred worldwide following the lifting of coronavirus restrictions.

Risk management: Steady progress

While companies have made radical changes in the way they use technology to manage their supply chains over the past two years, the development of their supply chain risk management capabilities has been much more incremental.

Risk remains a priority for most respondents in our latest survey, with 83 percent of respondents experiencing at least some raw-materials shortages over the past year. Ninety percent say that they want to further increase resilience, and almost three-quarters expect to increase the budget allocated to resilience-related actions. Over the past 12 months, two-thirds of companies have implemented new supply chain risk management practices; among the most popular approaches are new processes to monitor supplier-related risks.

Forty-five percent of survey respondents say that they either have no visibility into their upstream supply chain or that they can see only as far as their first-tier suppliers.

However, understanding the status of complex, multitier supply chains is still proving extremely challenging. Forty-five percent of respondents tell us that they either have no visibility into their upstream supply chain or that they can see only as far as their first-tier suppliers.

""

Future-proofing the supply chain

There are some signs of progress. Last year, a paltry 2 percent of respondents said they had a good picture of their supply chains down to the third tier or beyond. This year, that fraction has increased to 17 percent, with the greatest progress in sectors with shorter, simple supply chains (Exhibit 5). In the consumer products and retail sector, for example, 21 percent of respondents feel they have sufficient multitier transparency. Forty-three percent of respondents from the commodity sector believe their organizations have sufficient supply chain resilience measures in place, even though only 14 percent have a good view of third-tier suppliers. Deep supply chain transparency remains especially problematic for the automotive, aerospace, and defense sectors, with only 9 percent of respondents confident in their third-tier supplier visibility and none expressing satisfaction with their supplier visibility at all levels.

For the third year in a row, supply chains remain at the top of the corporate agenda. Our latest survey shows that companies have made significant efforts to improve supply chain resilience over the past 12 months by expanding their successful digitization programs and implementing structural changes to their networks. With volatility and disruptions likely to continue, we expect resilience to remain a key topic for the foreseeable future. For leaders, upcoming priorities include more sophisticated approaches to planning, further adaptation of supply networks, and smarter inventory management strategies.

Knut Alicke is a partner in McKinsey’s Stuttgart office; Edward Barriball is a partner in the Washington, DC, office; Tacy Foster is a partner in the Charlotte office; Julien Mauhourat is an associate partner in the Paris office; and Vera Trautwein is an expert in the Zurich office.

The authors wish to thank Tim Beckhoff and Jürgen Rachor for their contributions to this article.

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Supply Chain Collaboration and Sustainability: Multiple Case Study from Moroccan Food Industry

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supply chain management case study

  • Fatima Gouiferda   ORCID: orcid.org/0009-0003-5077-2172 14 &
  • Saadia Iddik   ORCID: orcid.org/0000-0002-6266-3921 15  

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 1104))

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This article examines the relationship between supply chain collaboration, sustainable supply chain and supply chain performance by providing answers to the following research question: how does collaboration among supply chain companies contribute to the performance of sustainability in the Moroccan industry?

The data of this multiple-case study was collected from semi-structured interviews in three case-companies in Morocco. By examining multiple cases, the research aims to capture variations and commonalities, allowing for a more robust analysis of the research question. The findings emphasize how supply chain collaboration and sustainability synergistically reinforce each other, leading to enhanced sustainability outcomes, improved risk management, and greater overall organizational resilience. This research contributes to the understanding of how Moroccan firms leverage collaborative networks to drive sustainability, positioning them at the forefront of sustainable business practices in the global arena. The research relied on qualitative data collected through semi-structured interviews. While this approach provides rich insights, it might not capture quantitative trends or statistical relationships that can be analyzed using more extensive data sets. Managers should recognize the significance of collaboration among supply chain companies. Implementing structured collaboration strategies, such as joint planning, information sharing, and coordinated decision-making, can contribute to the overall performance of sustainable practices.

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Gouiferda, F., Iddik, S. (2024). Supply Chain Collaboration and Sustainability: Multiple Case Study from Moroccan Food Industry. In: Benadada, Y., Mhada, FZ., Boukachour, J., Ouzayd, F., El Hilali Alaoui, A. (eds) Proceeding of the 7th International Conference on Logistics Operations Management, GOL'24. GOL 2024. Lecture Notes in Networks and Systems, vol 1104. Springer, Cham. https://doi.org/10.1007/978-3-031-68628-3_38

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Case Study: When Tragedy Strikes Your Supply Chain

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In the wake of a factory collapse, a clothing retailer must decide whether to relocate production.

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  • Ram Subramanian is a professor of leadership at Stetson University.

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Terry College of Business, University of Georgia

Terry Case Study: Julian Squire

Julian Squires poses with boxes in a warehouse.

Julian Squire

Hometown:  Mableton, GA

High School and Grad year: Campbell High School class of 2022

Management Major with an area of emphasis in Supply Chain Management

Julian Squire , a supply chain management major for Milton, started asking questions about the supply chain during the COVID-19 pandemic. Now he wants to shape the future of supply chain management.

Why did you decide to come to UGA and the Terry College of Business? 

As a child, I saw that all the adults I knew went or were going to UGA. Right there, I knew I wanted to go to the school. It is the only school I applied to. I chose Terry College because, in my research, I found Terry is the most renowned college at UGA. 

What made you decide to focus on supply chain management? 

During the pandemic, I worked at Walmart in the back room. I used to unload the trucks every day, and I’d see thousands of boxes of paper towels, cleaning chemicals … just everything. When one day you see a certain amount of paper towels, and the next day you see a different number of paper towels, it puts the idea in your head: ‘Who orders that? Who’s the mastermind behind it, who knows what we need?’

Seeing the limited order of things like masks or gloves made me wonder why suppliers weren’t pushing them out as fast as they could. I originally wanted to do finance but quickly fell out of love with it after my first couple of months at UGA. I then decided supply chain was the way to go.

What do you do when you’re not in class? How have those experiences shaped your goals and how you approach problems?

I play a lot of basketball and soccer in places like the Ramsey Student Center. Playing pick-up and intramural sports is a great way for me to stay active and relieve stress. It’s helped me realize the importance of working with a team. At the end of the day, the game cannot be won by just one person. 

If everyone is working together, it creates multiple sources of strength. This is why it is important to work well with your team whether it is in an office or on a field.

What did you do this summer? Can you tell me how your internship experience changed your outlook as you returned to class this fall? 

I worked as a freight broker intern at Werner Enterprises. This job focused on developing logistics solutions for customers moving freight while trying to create the best routes possible for the drivers. 

The biggest thing I learned about the working world is the importance of proactivity. What I mean by this is going on to the next step and being open with communications. Whether it’s your boss or the customer, telling someone something — either positive or negative — is much better than them finding out.  Knowing this now, I am much better at communicating what is going on around me.

You’re involved with the Supply Chain Advisory Board. How has that impacted your time at Terry and your plans after graduation? 

SCAB (Supply Chain Advisory Board) has been a source of companionship and professional support. It has provided me with a plethora of opportunities to bolster my network with employers. Working with the professional members of the board has built my professional knowledge and confidence by offering advice and support. It has impacted my time at Terry because it offers me the confidence that what I’m learning in school will help me land a great job after graduation and thrive in that job. I know the leader of the board,  Marty Parker , wants all students on the board to have great jobs coming out of college. 

What class or teacher made the biggest impact on how you see the world or your plans after graduation? 

The teacher with the biggest impact on how I see the world is  Jason Epstein , who was my professor for my Legal and Regulatory Environment of Business course. The class was great, but he specifically made the class very enjoyable. While learning about the law, he made every lecture tailored to us as students. It showed me just how applicable every law is to everything we do.

What is your most memorable UGA memory?

My most memorable UGA memory is going downtown after UGA won the National Championship for the second time. I have never seen so many joyous people in one spot. Everyone I knew was there and the camaraderie with even those I did not know was amazing. Everyone was happy and hyped. It was an amazing atmosphere.

You have family in Georgia and Germany. How did growing up with an international family impact how you think the global supply chain connects people and countries?

Growing up in an international household was the biggest blessing I got in my life. Being able to speak three languages has opened the door to communicating with billions more people on this Earth. This greatly impacts my business life. I feel like I’ll be able to open the horizons for many companies as someone who studies supply chain and can communicate with people internationally.

It is all thanks to my mom, who taught me German before I learned English. Having these different mindsets also allows me to one, learn new languages more easily like I did with Spanish, and two, think about issues from multiple perspectives and how people from other countries would go about solving the issues. 

  • Title & authors

Feisal, Albert, et al. "Supply Chain Quality Performance (SCQM) and Quality Performance: Case Study for Selangor Poultry Industry." International journal of health sciences , vol. 6, no. S3, 2022, pp. 2452-2468, doi: 10.53730/ijhs.v6nS3.6068 .

Download citation file:

Supply Chain Quality Performance (SCQM) and Quality Performance: Case Study for Selangor Poultry Industry Image

The purpose of this study is to investigate the practises on the quality performance impact toward supply chain quality management (SCQM). The study applies quantitative approach, and the questionnaire as a primary data to collect the information. A total of 30 questionnaires were collected from poultry farm owner in the state of Selangor. The descriptive statistics, correlation analysis and multi-regression analysis are used to test the relationship between the independent variable with dependent variable. The results of the finding shows that supply chain integration, customer focus, supplier focus and quality leadership have no relationship toward quality performance. Only employee involvement have relationship with quality performance. The results of this study will help to encourage managers to give the high priority on both inter-firm and intra-firm relationships as a ways to achieve the superior quality performance. The results provide the managers with guidance on effective management to the upstream and downstream of supply chain networks and help to create awareness on the potential synergies that keep arise from the combinations effects of SCQM practices that could bring about desired quality performance outcomes across the whole supply chain network.&nbsp;

Evaluating the Role of Homoeopathically Potentised Magnesium Sulphate 30C on Insulin Resistance in Type 2 Diabetes Mellitus Patients in Surat, India: A Randomised Controlled Crossover Clinical Trial Image

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    Management Major with an area of emphasis in Supply Chain Management. Julian Squire, a supply chain management major for Milton, started asking questions about the supply chain during the COVID-19 pandemic. Now he wants to shape the future of supply chain management. Why did you decide to come to UGA and the Terry College of Business?

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