Triple-A Supply Chain



Triple-A Supply Chain

Question 1

Large multinational companies usually dominate in many industries at home. And unfortunately, these large companies “to Wal Mart” which often have a corporate strategy of dominance by the costs, cannot qualify in this model in my opinion, although Lee says otherwise. As Porter's model suggests, these large companies are customers of their suppliers and unfortunately in this case, the client's power is so superior to everything else that there is usually only the crumbs of the pie for the other members of supply chain. In the world of large corporations, it lives only for the rate of return in the short term and in their eyes, pour a little too much to suppliers equals lower performance. Because of their disproportionate powers, the industry giants decide the price they pay for supplies and they even oblige suppliers to contribute financially to their advertising campaigns. The three A factors that Lee proposes are:

Agility

Companies today focus on efficiency, speed and cost cutting strategies of their operations without realizing the importance of agility. In the 90's, every time Intel introduced a new microprocessor, Compaq introduced the next generation PC by taking more than their rivals, due to its long design cycle. The company lost share in the minds of consumers, because they never could count among its customers early adopters, who are generating excitement about high-tech products. Worse, he was unable to compete on price.

Agility in this era has become even more important and organizations are focusing more towards it due to the sudden shocks in the supply chain in the recent times. In September 1999, due to the earthquake that had hit Japan, there was a delay in the shipments of computer components for the U.S. which stretched to weeks and months even.

Most PC makers like Apple, ...