Business Studies

Discussion Thread must be at least 275 words or more not including references which should supported by citing at least 2 new peer-reviewed journal articles between 2017-2022 and 1 biblical reference. Biblical verse needs to cited (King James Bible), in current APA format. Discussion must be in current APA format and must include a reference list. Reference sample make sure to include DOI-Drollinger, T., Comer, L. B., & Warrington, P. T. (2006). Development and validation of the active empathetic listening scale. Psychology & Marketing, 23(2), 161-180. https://doi.org/10.1002/mar.20105
Assignment Details below:
-Answer the question posed in the thread.
-Respond to the practical example in the thread by sharing a practical example that differs from the one in the thread.

Discussion to reply to:
Discussion Thread: The Internet and Supply Chain Management

Concept

The topic that I have decided to research for this post is the internet as it relates to supply chain management. Over the years, supply chain management has gotten increasingly more complex and the Internet is partially to thank for that (Graham & Hardaker, 2000). As innovation becomes an ever-present factor in business, the more technologically advanced a company is, the better it seems to perform. One way that companies are choosing to use the Internet to help manage their supply chain is by purchasing the technologies need online, rather than buying actual hardware and software (Liberty University: Stock & Manrodt, 2020). This allows processes to be more efficient and “leaner” so the company can provide better service to their customers (Liberty University: Stock & Manrodt, 2020). Because of this, companies that utilize the Internet to the best of their abilities are surging ahead in supply chain management, leading the way for others to follow. One such company that has always seemed to adapt and move with updated technology in order to beat out their competitors is Starbucks Coffee Company.

Application/Example

Starbucks Coffee Company began as a small, single location, coffee shop and has since grown into one of the largest and most successful companies in the world (Gulmez & Sagtas, 2020). In 2007, Starbucks saw an uncomfortable decline in the company’s performance and the chairman recognized the need to change things up (Karthik & Dixit, 2015). After an analysis of the whole company and its operations, Starbucks noticed a gap that could be filled with technology. Over the next few years, Starbucks began incorporating more and more technology into their daily operations and saw their performance rise again (Karthik & Dixit, 2015). One area in which the company implemented the use of the Internet was in their supply chain management. By ding inventory counts with the help of automated systems, Starbucks was able to reduce the amount of time it took their supply chain to get correct inventory counts and it also reduced the opportunity for human error (Karthik & Dixit, 2015).

Another way that Starbucks uses technology to advance the efficiency of their supply chain is through the mobile app. With constant data filing in about customer trends and preferences, Starbucks is able to use that information to send back to their suppliers with predictions on what products they may be needing more or less of in the coming months (Gulmez & Sagtas, 2020). By doing this, Starbucks avoids wasting inventory as well as shortages of more popular items.

In these two ways, and many more, the use of the Internet has propelled Starbucks to the forefront of customer service and performance in their field. For Starbucks, this came after a dramatic decline in performance and out of a necessity to succeed, but for other companies who utilize these techniques proactively, the implementation of the Internet in supply chain management can be used to prevent a decline and promote success.

Question for Classmates

Why might companies opt to use the Internet for their supply chain management needs over traditional hardware and software? What specific benefits can a company expect as the outcome of this decision?

ANSWER

Discussion Reply 1

Hello, first, to answer your questions, companies are moving to the internet to handle their supply chain management needs because of the ease of access and cut in costs. Online platforms reduce the cost of both supply chain management and supply chain functions. The internet also increases the speed of transactions and transparency. Today, many companies have shifted to the online platforms for supply-chain because it is also where they find most customers and thus expand their customer base (Tarofder et al., 2017). The internet is a reliable place to find information on specific needs, and it is also relatively easy to complete an exchange of goods and services. Traditional supply chain management takes time and more money. Thus, companies should expect that by turning to the internet, they will be making more money, cutting costs, and delivering goods and services to customers in a shorter time.

While Starbucks uses technology to advance its efficiency in the supply chain, there are downsides to this. The technological advancements today have made it easy to make profits, but they have also made personal information more vulnerable. The information about the customer and their needs is an invasion of the customer’s privacy, and the predictions on what a customer might need are mind-controlling (Ben-Daya et al., 2019). There is a lot of personal data in the applications involved in the online supply chain, and that data can be easily harvested if the company is not careful. Apart from the advantages associated with the use of the internet in the supply chain, there is a myriad of disadvantages of using the same. Orders get confused all the time, and customers end up having the wrong orders. The company can also receive negative reviews, which might lead to its decline.

References

Ben-Daya, M., Hassini, E., & Bahroun, Z. (2019). Internet of things and supply chain management: a literature review. International Journal of Production Research, 57(15-16), 4719-4742. https://doi.org/10.1080/00207543.2017.1402140

Tarofder, A. K., Azam, S. F., & Jalal, A. N. (2017). Operational or strategic benefits: Empirical investigation of internet adoption in supply chain management. Management Research Review.