Topic: Supply Chain and Operations Strategy

今天给大家带来一篇优秀的论文 这篇论文讲述的是供应链和运营战略对于组织的有效性和绩效的重要性，将重点介绍Intel公司采用的供应链和运营战略，并探讨Intel公司采用的这些战略的几个概念和原则。介绍英特尔供应链和运营管理的各种不同战略方法，以及这些战略的绩效衡量。此外，本文还将重点介绍财务、非财务、单因素和多因素绩效指标，这对衡量英特尔的绩效有很大帮助 一起来看看吧 有论文需要帮忙的亲亲可以联系我们的专属客服Even100100进行咨询喔~

Supply chain and operations strategies are highly significant for organisational effectiveness and performance. It has been proposed by Hugos (2018) that companies highly emphasise the need of establishing supply chain and operation strategies to optimally utilise the resources of the company. The present essay will mainly highlight the supply chain and operational strategies that are adopted by the company Intel and will explore several concepts and principles of these strategies utilised by Intel. In addition to this, the essay will pinpoint the key drivers of effective supply chain management, which Intel highlighted mainly to reduce the cost for the Atom chip. According to Copacino (2019), effective supply chain management helps the companies in gaining competition against other companies which are providing the customers with similar kind of products. Moreover, the present essay will also explain the key decisions which were taken by Intel for reducing the cost for Atom chip along with several different examples; thus, it will identify the decisions which helped in improving the pre-existing supply chain and operational strategies. In-depth information about Intel's various different strategic approaches of supply chain and operational management will be explained, along with the performance measurement of these strategies. Furthermore, the essay will highlight financial, non-financial, single and multi-factor performance measures, which significantly helps in measuring the performance of Intel. Jacobs et al. (2014) argued that there are different key performance indicators that helps in the effective management of the supply chain and operations. Thus, the key performance indicators for effective supply chain and operations management at the company Intel will also be explored in the present essay. Lastly, the intra-organisational and inter-organisational benchmarking for Intel will be discussed, which helps in improving its supply chain and operational management efficiency.

Discussion

1.Concepts and principles of operations and supply chain management

The supply chain management is mainly dependent on five different elements that include planning, raw materials sourcing, manufacturing, delivery and returns. Scott et al. (2018) stated that the companies are required to focus on all of the five elements of supply chain management in order to enhance their efficiency level. The main issue which the company Intel was facing high cost related to Atom chip; thus, the company emphasised the need to utilising different concepts and principles of operations and supply chain management. The effective concepts and principles of operations and supply chain management help the companies like Intel in managing the cost related to the supply chain. It is researched by Wu et al. (2010) that the company intel highly focuses on formulating different supply chain and operational management strategies for increasing the level of responsiveness and productivity. The main concept utilised by Intel is to reduce the cost of the product Atom chip is by reducing proper planning of the supply chain. As per the case study of Intel, it is appropriate to mention the fact that the only way which helped Intel in reducing the cost of Atom chip is by controlling the inventory. In addition to this, the company conducts the forecasting of the demand in order to enhance the production need analysis of Atom chip. Inventory control is considered as one of the major concepts in supply chain and operational management; therefore, the supply chain managers and the operational managers are required to monitor the complete process of ordering, storing and utilising the inventory. Furthermore, Khan and A. Sepúlveda Estay (2015) critically analysed that the companies such as Intel regularly identify the need for supply chain and operational management in order to increase the efficiency level of the company. Intel manages the inventory for successful supply chain management, and it measures the need for the required raw material and component for manufacturing the desired amount of product. There are several different companies that primarily focus on utilising the concepts and principles of supply chain and operational management for maintaining sufficient inventory in the warehouse; thus, Intel can also reduce the cost of Atom chip by managing the warehouse inventory effectively. Therefore, Intel is already focusing on several different supply chain and operational management strategies in order to reduce the cost of the Atom chip.

2.Key drivers of effective supply chain management

There are different key drivers of effective supply chain management, and it is researched by Sodhi and Tang (2019) that the key drivers of effective supply chain management include investment costs, transportation cost, procurement cost, inventory cost and production cost. The companies which are able to attain any of the key drivers of the effective supply chain are able to gain sustainability in their supply chain. The effective management of the supply chain starts from the initial steps of the process, such as from collecting the raw sources for production. The company Intel is mainly facing problems due to the ill-management of inventory which leads to problems related to high cost. Therefore, Intel is mainly emphasising the need of establishing effective strategies that help the company in effectively managing and reducing the cost. Costs for the products can be reduced by sustainable production practices and also by efficiently managing the inventory. There are different measures that the company Intel can utilise in order to manage the inventory cost, such as by just in time production and by reducing the cost related to the packaging of the product. The product Atom chip faces several complications due to its high cost, which can be effectively managed by controlling and managing the inventory and by establishing a new supply chain and operation management plan (Hoske, 2009). The new plan would mainly provide the company with the direction and guide that would help the company in reducing the cost of the Atom chip by enhancing inventory management. However, as per the case study of Intel, the cost of the product Atom chip cannot be reduced with the help of reducing the duty payments as they cannot be reduced any further. Somehow, the packaging cost of Intel is already low, but there is always a possibility for reducing the packaging cost of the product. Furthermore, the distribution cost of the products of the company Intel such as Atom chip, cannot be further reduced as it is already immensely low. Therefore, the main reduction of cost can primarily be done by focusing on the inventory cost key driver; the company Intel is advised to make better use of the space for reducing the element of cost and by monitoring the demand of the customers. Mönch et al. (2018) stated that the companies which emphasise the need for regular monitoring of the customers are more likely to reduce the cost for inventory. Lastly, the element of outsourcing also enables the companies in reducing the cost of the product; thus, by effective management of the inventory, the organisations are able to reduce the cost related to inventory. Hence, this particular section highlights different key drivers of supply chain management and explores that the inventory cost is the major driver which impacts the company Intel.

3.Effective operations and supply chain management enhance competitiveness

Companies face a high level of competitiveness in the present market and are required to take extra and advance measures for gaining a competitive edge against other companies. According to Mensah et al. (2015), if the companies highly emphasise formulating effective supply chain and operational management strategies, then they are able to enhance the chance of attaining competitiveness. Companies which adopt effective supply chain and operational management strategies are capable of attaining a competitive edge because of the increased quality of the product and its reliability. In addition to this, effective supply chain and operational management strategies are able to enhance the flexibility and cost-efficiency of the companies. The study proposed by Kshetri (2018) mentions that Intel is already focusing on reducing the cost related to the product by improving the supply chain and operational management strategies; however, more effective strategies can help Intel in further cost reduction. Intel has gained a competitive advantage against other companies which are providing the customers with similar kinds of products because of its effective strategies such as efficient management of order cycle time, efficiency level and inventory turns. Moreover, the company Intel is able to further reduce cost related to Atom chip by establishing future product roadmap and by considering effective initiation strategies (Subirana, 2005). The chairman of Intel stated that the company is also advised to highlight and concentrate on the cost side along with the performance side. Intel highly relies on artificial intelligence for improving its supply chain and reducing the element of cost; thus, the use of artificial intelligence helps Intel in gaining competition against all the other companies. There are a few of the competitive advantages which the company Intel gains because of the utilisation of artificial intelligence, such as improved product validation process, faster time to market, and lower costs.

The company Intel is able to gain a competitive edge against all the other companies not only by reducing the cost of the product such as Atom chip; however, and there are various other reasons that can help the company in gaining a competitive advantage over others. According to Castillo et al. (2018), the company Intel can focus on proper real-time supply chain and operations management planning, and also by focusing on the collaborative supply chain such as the company, Intel can collaborate with different vendors in order to effectively manage the inventory. In addition to this, as discussed earlier, the innovative and automated supply chain and operations management systems help Intel in attaining competition. Thus, these are the effective strategies that the company Intel highlights for gaining a competitive edge over others.

4.Intel's effective decisions improve its supply chain and operations management

Companies are encouraged to focus on the development of effective decisions in order to improve their supply chain and operations management. As mentioned earlier, according to Kempf et al. (2013), the company intel majorly focuses on artificial intelligence due to the different kind of benefits it provides to intel. The researchers further stated that Intel is able to reduce the cost due to the usage of artificial intelligence. In addition to this, Intel effective decisions enable it to improve its supply chain and operations management, such as the company Intel emphasise the need for sustainable green supply chain practices and because of its sustainable supply chain decisions, the company is able to effectively handle cost-related issues. Moreover, Intel highly focuses on establishing effective decisions which efficiently handles the rules and regulations of the Government. One of the most effective decisions taken by Intel is to rely on artificial intelligence as it has improved the responsiveness of the supply chain; also, it has enhanced the productivity level while reducing the product cycle time and the level of inventory stored. It is critically observed by Arlbjørn et al. (2011) that the company Intel highly focus on establishing effective decisions as these kinds of decisions are able to improve its supply chain and operations management. The researchers added that the most significant decision of Intel is to gather and explain the decision, and the second significant decision is seeking realisation. Also, the other important decisions made by Intel include that it emphasises on the need of building good and effective teams of experts in order to effectively handle any issue or challenge related to the supply chain and operations management. Additionally, the company highlight the importance of setting scopes and limits for an effective supply chain and also encourages the employees to focus on working the process. It is researched by ICMR (2017), that the company Intel highly rely on its effective decisions to enhance its supply chain such as the company shifted to a pull-based model which has more clear signals, shorter cycle times, lower touch but high-efficiency customer and supplier models and also adopted lean processes. Intel encouraged its team to make operational changes and to effectively handle the supply chain. However, there are few other effective decisions that are in consideration of Intel in order to improve its supply chain, such as cutting the chip assembly test. Intel is mainly encouraging to reduce the five-day schedule to a 2 day or bi-weekly process in order to test the chip. Another major effective decision that is highlighted by Intel is to introduce a new and formal S&OP process of planning for managing the supply chain effectively. Lastly, the company has emphasised on the need for a vendor-managed inventory model as the major cause which Intel is facing is related to reducing the cost that the company face due to week management of inventory, and this particular model can help the company in achieving it.

5.Different strategic approaches to supply chain and operations management in Intel

Companies focus on establishing different strategic approaches for the supply chain and operations management process in order to increase their efficiency level. Paper (2018) argued that Intel strategic approach is to focus on an automated supply chain; thus, the automated supply chain helps the companies in maximising the level of efficiency of the company Intel. Moreover, Intel has established several different databases and computer systems for the purpose of effective monitoring of the supply chain and for identifying the areas which need immediate improvement. In addition to this, the researchers further added that the company Intel focus on the formulation of different strategic approaches such as effective management of the inventory in order to increase the productivity of the company. Furthermore, inventory management strategic approach helps the company Intel in managing inventory in a way which is capable of fulfilling the requirement of the market. The operation management approach which the company Intel primarily highlights is FIFO which stands for first in and first out; thus, this particular approach helps the company in gaining efficiency and managing inventory effectively. Intel Corporation (2012) stated that the company Intel not only emphasise on the need for effective inventory management but also relies on the scheduling strategy, Intel establishes schedules for catering short term and intermediate plans for satisfying the need of the market by producing the right amount of the product; scheduling helps the company in managing production processes which result in cost-reduction.

6.The relevance of performance measurement within supply chain and operations management.

Performance measurement is a significant concept that enables organisations to measure as well as monitor their performance with respect to their supply chain management operations. The Micros and logistic profiles highlight the necessary concerns to be considered by organisations to perform effective supply chain management. Moreover, a key challenge for them is to identify and make use of the appropriate performance measures and metrics to measure their supply chain performance. Intel has planned to reduce the cost of the supply chain operations and improve its competitiveness (Kleijnen and Smits, 2003). So, the company is also required to identify the suitable performance measures that make it capable of learning about the gap between the current performance of the company and the future vision where it wants to stand. Furthermore, as the company has achieved the path to cost reduction and needs to eliminate the supply chain inefficiencies, the performance measures would be contributing to the identification of the factors that cause supply chain inefficiencies. Therefore, the tight supply chain performance measurements would be helpful in the identification of the discrepancies and the ways to improve the areas requiring special attention.

The development of effective performance measurement standards for Intel also requires the company to achieve the goals of efficiency and effectiveness in supply chain operations. For the purpose to do so, Intel requires a set of standards to compare the actual performance with those standards that serve as the ideal ones for the respective company. So, the challenge for Intel is to choose the metrics to make the comparison (Kleijnen and Smits, 2003). For the purpose to address the complexity, there is the need to adopt a holistic approach so that no supply chain link remains missing. Hence, metrics direct Intel's behaviour. As discussed above, the drivers of the logistics performance of Intel are quite significant; they are also important while measuring the supply chain performance of the company. Therefore, they act as the key performance measures in the supply chain management process.

There are some critical considerations that may lead to raising the complexity for Intel to measure its supply chain performance. Firstly, customer orientation is necessary to identify and address their needs (Shepherd and Günter, 2010). Secondly, the process-based approach is necessary for continuous improvement in supply chain management. Thirdly, timely cost measurements are necessary for making improvements. Lastly, the role of technology is significant to develop the capabilities for effective supply chain performance measurement. All of these complexities can be efficiently addressed with the development of metrics. As Intel has planned to use the formal S&OP planning process, its metrics regarding the supply chain processes can be developed as making timely deliveries to the customers, the accuracy of demand forecasts, managing the order cycles and capacity planning. These metrics can help Intel to deal with the issues of inventory that may include managing inventory costs, the location being centralised or decentralised, managing velocity and demand variabilities that may lead to the generation of the Bullwhip effect. Similarly, Intel should choose the performance measure in terms of inventory management in the supply chain operations. The performance measure regarding inventory management that Intel chooses is Inventory Turnover. Therefore, the supply chain performance measurement requires Intel to develop the standard metrics and choose inventory turnover as a performance measure.

7.Evaluation of various financial, non-financial, single and multi-factor performance measures applicable to Intel

Intel has used the path of cost reduction, so the measures related to cost reduction and increasing profitability are applicable for its supply chain and operations management. For the purpose to assess the performance of the supply chain management system, Intel intends to choose financial, non-financial, single and multi-factor performance measures (Gunasekaran and Kobu, 2007). The qualitative measures or the non-financial measures that can be used by Intel comprise product quality that can be improved using sustainable supply chain management for cost reduction, reduced cycle time and flexibility. These measures enable the company to ensure quality, enhance competitiveness and retain its customers, which enhances the profitability of the business, simultaneously reducing the costs. Although the vendor-managed inventory model has also contributed to increased customer satisfaction and cost reduction, it has certain risks as well, such as losing control and lack of agility in market responsiveness.

Alternatively, the financial measures consist of activity-based costs, including the manufacturing costs and the costs of handling materials, transportation costs, costs of late product deliveries, costs of damaged goods, costs of sales returns, credits from late deliveries from vendors/suppliers or goods returned to suppliers. Contrarily, a single factor performance measure can be used to measure in terms of a single factor (Akyuz and Erkan, 2010). The single factor measure is used to measure a specific process that requires to be monitored from the entire supply chain department. For instance, the single factor may be the output produced by the labour to measure the productivity on per hour or per unit basis. On the other hand, multi-factor measures are based upon measuring numerous aspects of the supply chain management process. For intel, the multi-factor measures include both financial and non-financial measures that can be used to evaluate the supply chain performance of the company. Thus, organisations tend to develop several measures for their performance management with respect to their supply chain operations according to their requirements and suitability.

8.Selection and Application of Key Performance Indicators for effective Supply Chain and Operations Management at Intel  

The manufacturing of the technology and the operations are the core aim of Intel. The whole process is combined with the production of integrated circuits that are provided to the customers in the form of finished goods. Intel identifies its supply chain as a combination of technology, people, processes, resources, and the information that returns the component in the form of goods and services. Intel engaged its customers by providing them feedback regarding how they can serve them in a better way. In this context, IT@Intel White Paper (2012), that the consumers are dissatisfied with the order fulfilment process, has highlighted it. Moreover, the response period of Intel is also higher, and as a result, Intel launched a Just Say Yes program that is purely based on connecting the operations and supply chain of business to enhance the efficiency of responses. Additionally, Intel has implemented a Committed Dock Date that is associated with the commitment towards the availability of products through operation and effective supply chain management to deliver the desired product to customers (Intel Retail Edge Program, 2017). Furthermore, the business has replaced manual systems with automated systems in warehouses that enable them to monitor the stock level and quality control (Krishnapura et al., 2011). Additionally, the damage and missing items also are accessed through the system. Intel has introduced a VMI strategy for the operation management at the regional or the worldwide warehouses and storage houses. This practice regulates the advanced level of supply, and the change in order can be done multiple times until the order is completed. Order Fulfilment Lead Time (OFLT) is the KPI used in this context for regulating the average lead-time for the fulfilment of customers' orders. Vendor Managed Inventory (VMI) provides better operation management to Intel in terms of managing the inventory level. Above all, the ERP platform of Intel is effective enough that can make a significant contribution to the overall supply chain process (Bowman and Brain, 2015). Contrary to that, for sound operational management, Intel has been engaged in high quality and master data management from the top floor until the bottom floor for effectiveness in operations. Accessing the connection between the upstream and downstream of business infrastructure is the main KPI that is followed at the organisational level. The E-custom system is another KPI implemented in Intel for the quality accessibility of data and the reporting improvements (Rodríguez-Rodríguez, 2020). Intel IT has permitted the automation along with the BI solution that is the performance indicator used by them for the transport optimisation and scheduling the routine operations management. Hence, it has been concluded that Intel is using numerous strategies and practices that are used by the business for accessing the key performance of the operations and supply chain management.

9.Intra and inter-organisational benchmarking helping Intel improve their supply chain and operations management efficiency  

In the international market, there are multiple competitors of Intel such as Samsung Electronics, Micrel, Atmel, Altera, and Gig Peak. All of the competitors of Intel are giant players and have adopted a number of practices and strategies to sustain their supply chain operations and reduce the cost of production (John and Eeckhout, 2018). This means that intra-organisational benchmarking can be very beneficial for Intel. This is because by adopting the use of intra-organisational benchmarking, Intel will be able to compare and contrast its supply chain and cost reduction strategies with its competitors. This will help the firm in developing an adequate understanding of how Intel can improve its supply chain and cost reduction strategies. After conducting a comparative analysis of the supply chain practices of the competitors, Intel will be adopting one of the best strategies (Wang et al., 2019). Along with this, a detailed analysis can also help Intel in developing an innovative strategy for supply chain management and cost reduction. Where intra-organisational benchmarking is quite effective and can be very beneficial for Intel, inter-organisational benchmarking is a bit less effective and beneficial for Intel. Conducting an inter-organisational benchmarking will enable the firm to compare its own operational management strategies and identify which one can be used most effectively to manage supply change and reduce the cost of inventory. Intel is a tech organisation that holds great knowledge of what it is doing for the management of operations (Yang et al., 2021). There are very few chances that inter-organisational benchmarking can click up a new idea for the management of the supply chain and reduction of inventory cost. Hence, one can say that intra-organisational benchmarking is very beneficial for Intel due to the availability of giant competitors. 

One of the most significant models of Supply Chain and operations management is the Supply Chain Operations Reference (SCOR) Model. The model is effective for benchmarking and process measurement of the supply chain operations (Prakash et al., 2013). Intel may use the model to measure the operational performance of the companies that are operating within an industry of almost similar nature. Intel benchmark its supply chain performance with its competitors to achiece the best class standards in supply chain and operations management. The model has the potential that enables Intel to gain complete leverage on financial investments in the business, development of a continuous improvement culture, attainment of the best business standards, generating returns on investments and alignment of supply chain operations. Hence, the SCOR model contributes significantly for improved supply chain performance of Intel.

Conclusion

In a nutshell, the present essay analysed different concepts and principles related to supply chain management and critically discussed the key drivers of an effective supply chain. There are a total of five major key drivers; however, the company Intel needs to focus on the inventory cost key driver. Moreover, different techniques and methods were explored in the essay for managing inventory cost. In addition to this, the essay also highlighted the key supply chain practices adopted by the company Intel for enhancing the level of competition against all of the other brands, such as high use of artificial intelligence. Several effective supply chain decisions are made by Intel which is also identified in the present essay, along with the description of different strategic approaches which the company Intel use for effective supply chain and operations management. Furthermore, Intel can make use of numerous financial and non-financial and multiple-factor measures to utilise its resources efficiently and effectively. The measures include product quality cycle time, activity-based costs, costs of late product deliveries, costs of damaged goods, costs of sales return etc. Developing benchmarking standards for Intel is also beneficial, as it enables the organisation to achieve the quality standards in their supply chain and operation management strategies. The SCOR Model also proves to be a significant approach for benchmarking and performance of supply chain operations. Moreover, the SCOR Model enhances the financial potential of the business by enabling it to generate financial resources and keep on improvising the quality in supply chain processes and operations. Therefore, the supply chain and operations management strategies have the potential for the businesses to minimise their costs, enhance their competitiveness, reduce their cycle time, gain customer retention leading towards efficient and effective supply chain performance.


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