ISCOM 370 (rewriting)

Running head: SUPPLY CHAIN ANALYSIS 1

For AutoZone’s Supply chain to be successful, the company must understand all the components of it. That will go a long way when implanting the strategies and concept into the chain. Distribution is the most crucial factor in the supply chain, it determines how and when the product to get the customers. Flourishing Chain will utilize every factor that impacts its distribution channel and exploits all the technology to make the distribution more active and proficient in allowing customers to acquire their parts at an opportune moment.

Over the years role of the supply chain has been altered. The distribution has switched from shipping from one focal point to another, now technology has shortened the process that will ship directly from the manufacturer to the customer that will tie into the distribution channels. Though distribution is costly, a person would think all the risk will be eliminated. Contrarily to what people may think, distribution has many risks it must account. When the product is unloaded onto the truck, it’s the trucker sole responsibility to ensure the customer receives their product. Distribution initially starts at the beginning when it is transporting the raw material from the supplier to the manufacturer. The entire concept of the distribution network focus on two concept theories, first theories describes a vague description of the operation, the second concept does a complete overhaul of defining the theory. Inside the second theory, it examines the locations, capacity, capability, and how much demand they will receive.

AutoZone uses an indirect form in their distribution channel, all things considered, they are a retailer. If AutoZone was a wholesaler, a direct form would apply. Arguably, the indirect application will have several influences that may it, such as response time and product availability. Customers select certain repair shop based on three factors, cost, quality, and speed. So, in turn, they select auto parts retailers that can get them their part faster and a better price. Therefore, if AutoZone cannot meet the response time, they possible can lose a sale. Product availability is something AutoZone can’t control, resulting from the type of business they formed. a retailer and not the supplier. They can only predict the demand, but if they miscalculate inaccurately they can have too much inventory or too less, either way, its creating a loss.

They can implement tracking software that the customer is able to use. The software will be able to give real-tracking information of the purchased product. It gives an update on each stage of their shipment. It will reflect any delays in their shipment, they will allow the customers to either continue or stop the order. This applies to inventory, especially online purchases, it should able to illustrate how many parts in inventory. This provides assurances to the customers that the actual part is in stock. Knowing where the part is in the supply chain is the benefit the organization, it determines how they can they can plan around the receipt of the part. Implement the new software in the retail system will take about a month, the biggest issue is its consuming too much time by training the retail workers how to navigate through the system and basic familiarity with the new upgrades. Unrolling the new program in the retail stores will have a slow start. Regional orientation will be scheduled, so all the store and district managers will in attendance, what they learn from the meeting illustrate it in their stores. The inventory tracking software is self-operating, the company will update their online website. The turnaround time on implementing the software is a couple days, worst case scenario.

Delivery is paramount method to measure how the AutoZone supply chain productivity. The improvements were not based on labor, meaning it was not required to hire more personnel to improve the supply chain. It was a technology upgrade to mend the chain. If the customers can track the product through the flow in the supply chain that will eliminate not knowing where to when they will receive the product. The second improvement provides inventory transparency to the customers, they won’t have to lose time figuring what they have in stock. It will reduce the number of stockouts once it’s the stock reaches its minimum, the replenish cycle can begin. Therefore, the number of deliveries will increase, the customer is finding it very useful and utilizing to plan for their repair on the damaged vehicles. Deliveries are parallel to increase in sales, more parts being delivered, means more parts being sold.

The role of the distribution is the core of the supply chain, without distribution supplies will not get delivered to the manufacturer or finish parts can’t get to the customers. It is also the main area where the supply chain can affect the most. It also has the highest risk factor, resulting from dealing with mother nature how unpredictable it can be. Every company has room for improvement if modern technology is constantly being created, new options will occur. Supply chain doesn’t have a single measure of productivity as far as how much profit they generate, it’s based on other aspects, deliveries, cost, forecast accuracy, quality, and stockouts. Deliveries are most the prevalent to AutoZone supply chain success.

Reference

Theinnovationenterprisecom. (2018). Theinnovationenterprisecom. Retrieved 16 February,

2018, from https://channels.theinnovationenterprise.com/articles/5-innovative-technologies-to-improve-supply-chain-management

Simplicablecom. (2018). Simplicable. Retrieved 16 February, 2018, from

https://business.simplicable.com/business/new/12-key-metrics-for-supply-chain-

management