Answers to Question Number 2

A. Explain Traditional Push and Pull Supply Chain, Do you believe – “Does an Industry have both
Strategy in their Supply Chain Operations – Explain Why? Why “Supply Chain Strategy
aligning with Business Strategy now in Global Completion”- Explain.

Push and Pull Supply Chain

The supply chain of a corporation extends from the industrial unit where its products are
manufactured to the point where they are in the hands of customers. According to my
understanding, in a push-based supply chain, products are pushed through the channel from
production to retailers for accomplishing expected demand at a bottommost cost. This indicates
that production is dependent on estimated demand and it has a long product lifecycle. On the
other hand, in a pull supply chain manufacture, procurement, and delivery are all driven by
demand rather than estimations which is a shorter product lifecycle. In short, in a push supply
chain, long-term customer demand predictions drive the process, whereas in a pull supply chain
actual consumer demand drives the process.
Industrial Strategies for Push and Pull in Supply Chain Operation
Every supply chain strategy is technically a mix of the push and pull-based supply chain. Some
industries use a push-pull inventory control strategy in their Supply Chain Operations, which
incorporates the advantages of both push and pull strategies. Push-pull inventory management is
also known as the lean inventory approach. Additionally, a mixture of these two strategies
facilitates a more precise sales prediction and modifies inventory levels in response to actual
sales. The objective is to stabilize the supply chain and reduce product shortages, which could
encourage customers to shop elsewhere. Planners employ complex tools to generate guidelines
for managing short- and long-term production needs with the push-pull inventory control system.
Some industries follow a mix of push and pull methods. For example, Cotton Incorporated which
is a Texas-based textile manufacturer follows a push and pull-based approach. They work hard to
build client demand by continually producing new items and putting them on the market, as well
as attracting people to these products through advertising and special offers.
Alignment of Supply Chain Strategy with Business Strategy
The business strategy requires utilizing the organization's core capabilities to accomplish a high-
level aim or target. As a competitive plan, it also involves the analytic and decision-making
process for defining what products and services to offer, when to offer (timing, business cycles),
and were to offer (markets and segments). While a company's general orientation is defined by
its business strategy, its supply chain strategy defines how that company and its extended supply
chain operations achieve specific supply chain goals. To eliminate gaps between the two, a
supply chain strategy should always support the intent of the business strategy. A well-structured
supply chain strategy can generate value creation for the organization. The first stage for supply
chain executives is to fully comprehend how the company chooses to compete. This is vital not
just for the apparent purpose of working together in the same direction, but also because the
supply chain is more than just an operational department, it must allow the business strategy.

B. “There is a person at the end of our Supply chain” – Who and Why? “ Why Supply
Chain Focus on the Expectations/ Demand of the End Customers” – What is logical
reason behind it – Explain

End Users of Supply Chain

The end of the supply chain is often referred to as the end-to-end supply chain. The end-to-end
supply chain is a comprehensive procedure, which incorporates product design and raw material
acquisition followed by scheduling, production, and ultimate delivery of the finished product to
the consumer. The end-user is someone who is involved in the supply chain process. The
consumer of a final product or service is referred to as the end-user. Individuals or organizations
who buy and use a product or service are known as consumers. For example, Armani is an Italian
luxury fashion business that develops, manufactures, distributes, and sells ready-to-wear leather
goods, shoes, accessories, cosmetics, and perfumes. People who buy or consume products of
Armani will be the end-users or end consumers of the Armani brand.
Reasons behind Supply Chain Focus on the Demand of the End Customers
Customers are essential to every business because, without them, there would be no sales, and
without sales, there would be no income or profits. Delivering outstanding items is becoming
increasingly crucial. If any industry wants its business to succeed, it must stand out in the
competitive business market. As a result, a lot of emphasis is placed on customer focus.
Approaches which focuses on the necessity of customers are known as customer-focused supply
chain strategy. In the global supply chain, any industry may have a major gain if that industry
has the correct customer focus supply chain strategy. Thus, businesses are looking for every
opportunity to become more customer-centric and competitive. For example, the consumer
anticipates excellent service, as they're paying money to ensure that they get a product on time
and in good condition. If an issue arises, they expect that firm to be transparent about why it
happened and what that firm will do to help them repair it. Therefore, a brand's reputation is
more vulnerable than ever before to damage from preventable supply chain blunders, particularly
in the digital era when a customer may publicly criticize the product and the service on social
media.

C. Discuss on Value Chain, How Supply Chain Converted into Value Chain? Explain
Briefly according to your own knowledge. What is your own understanding on
Customer Customer Retention through Value delivery, i.e. Customer Value?

Value Chain
The many actions that go into producing value for the client are referred to as the value chain. Its
main goal is to provide clients with the highest value within the least amount of money. A value
chain adds value at every stage of the product's life cycle, from design to manufacture to
distribution to the client.
Supply Chain Converted into Value Chain
Business holders must enhance their whole supply chain (the extended supply chain) and
transform it into a value chain to optimize their competitive advantage. Supply chains are made
up of weak ties that may be quickly broken by a new provider. On the contrary, a value chain is
made up of strong ties that are more difficult to sever. The supply chain cannot be broken only
based on price. Every supplier represents a time and financial commitment in the development of
a relationship and the pursuit of ongoing process improvement.
Customer Retention through Value Delivery, i.e. Customer Delivery
According to my understanding, consumers will purchase items that provide them with the most
perceived value. This value is derived from the expense of making emotional decisions such as
brand image, company brand, salesperson image, and functional image. By adding purchase cost,
time-energy in product evaluation, and intuitive cost, this value transforms to total consumer
cost. Consumers will make decisions based on the entire cost of the transaction, both perceived
and actual. If the product works as promised after purchase, the client is deemed satisfied. A
totally happy consumer is more inclined to repurchase the product and even recommend it to
others. Companies strive for ultimate customer satisfaction, which may be accomplished by first
knowing the client's expectations and then delivering on them.

D. “As the economy changes, as competition becomes more global, it is no longer company
vs. company but supply chain vs. supply chain” Explain according to your own
understanding, focusing on Bangladesh Context.

Competition in Supply Chain vs Supply Chain

In the era of a competitive business market, there is more pressure on the process of the supply
chain. Consumers prefer the best quality within a limited budget and within a fixed time frame.
Thus, the competition lies on which company can distribute the product smoothly to the
consumers. There are several steps in the supply chain which are from raw materials collection to
manufacture to distribution to end-user. The more the company makes this process of supply
chain easier and faster, the more it has chances to succeed in the competitive business market,
through delivering a large number of products to the consumers. Thus the competition grows in
supply chain vs supply chain rather than company vs company. For example, milk is one of the
necessities of almost every household. In Bangladesh, several companies produce this dairy
product, Milk Vita and Pran, are such companies. If Milk Vita can ensure the supply chain is
much smoother compared to Pran, then it can deliver more goods to consumers. Thus, it will
have higher possibilities of accomplishment in the business market rather than Pran.