QSO 455 2-1 Discussion: Retail vs. Manufacturing

Step-By-Step Guide on QSO 455 2-1 Discussion: Retail vs Manufacturing

Introduction to QSO 455 2-1 Discussion

In the QSO 455 2-1 Discussion: Retail vs Manufacturing, you will delve into the intricacies of supply chain management by comparing two prominent companies from different sectors. The task will involve a detailed analysis of their supply chain environments, focusing on how each manages customers, stakeholders, and business operations. The goal is to identify and understand the unique supply chain dynamics within manufacturing and retail contexts, offering insights into their operational strategies.

As mentioned in the QSO 455 Module One, I have chosen Apple Inc., a leading manufacturing company, and Walmart, a major player in retail, for this respective course. I will be providing dummy solutions for the companies I choose.

In your initial post, choose one manufacturing company (e.g., Boeing, Nike, and Ford) and one large retail company (e.g., Walmart, Walgreens, Amazon)

Selection of Companies

To start QSO 455 2-1 Discussion: Retail vs Manufacturing, we will select one manufacturing company and one retail company. As mentioned, I have selected Apple, Inc., and Walmart as respective companies.

• Confirm your choice of companies, which for the purpose of this exercise are Apple Inc. and Walmart. 
• These companies are chosen for their significant impact and leadership in their respective sectors.

Example

For this analysis, I have selected Apple Inc. as the manufacturing company and Walmart as the retail company. Both are leaders in their sectors, with Apple known for its innovative consumer electronics (Chen et al., 2021) and Walmart as a major global retailer (Toma et al., 2022). Their prominence enables a detailed examination of their distinct supply chain strategies, highlighting differences in customer engagement, stakeholder management, and operational approaches due to their respective industry demands. This selection aids in understanding how sector-specific challenges influence supply chain management.

Analyse the differences in the supply chain organisational environments (e.g., customers, stakeholders, business operations, etc.).

Analysis of the Manufacturing Company (Apple Inc.)

Next, in QSO 455 2-1 Discussion: Retail vs Manufacturing. We will analyse both companies with respect to their customers, stakeholders, and business operations.

First, we will discuss the Apple, Inc.

• Customers: Identify the demographic and geographic characteristics of the company’s customers. Reflect on how these aspects influence their supply chain, particularly in customisation and delivery.
• Stakeholders: List major stakeholders, such as suppliers, investors, and employees, and discuss their roles in the company’s supply chain.
• Business Operations: Examine the critical components of a company’s business operations, including product design, sourcing of materials, manufacturing processes, and logistics.

Example

Apple’s customer base predominantly consists of high-income individuals, tech enthusiasts, and young professionals globally (Theophilus, 2022). This diversity necessitates a robust, responsive supply chain to manage customised demands and rapid product deliveries. Key stakeholders, including global suppliers, investors, and employees, play pivotal roles. Suppliers ensure timely material provision aligning with Apple’s strict quality standards, while investors support operational and technological advancements. Employees, particularly in R&D and logistics, drive innovation and efficiency (Foster & Gardner, 2022). Apple’s business operations encompass meticulous product design, strategic material sourcing, precision manufacturing, and extensive logistic networks to maintain market leadership and meet consumer expectations effectively. This integrated approach allows Apple to adapt swiftly to changing market demands and maintain its competitive edge.

Analysis of the Retail Company (Walmart)

For this section of QSO 455 2-1 Discussion: Retail vs Manufacturing, we will analyse Walmart.

Customers: Describe the selected company’s customer base and how it affects their stocking and distribution strategies.

Stakeholders: Identify the key stakeholders involved in the company’s supply chain, including local and international suppliers, logistic partners, and government entities.

Business Operations: Focus on the company’s procurement, inventory management, distribution centres, and transportation logistics.

Example

Walmart caters to a broad customer base, including low-to-middle-income households across urban and rural areas. This diverse demographic shapes their stocking and distribution strategies, emphasising affordability and accessibility. Key stakeholders in Walmart’s supply chain include a vast network of local and international suppliers, logistic partners for efficient goods movement, and government entities that regulate operations (Vadakkepatt et al., 2021). Walmart’s business operations are centred around streamlined procurement and sophisticated inventory management systems. Their distribution centres are strategically located to facilitate quick turnover and lower transportation costs, ensuring timely delivery to stores nationwide. This efficient logistics framework supports Walmart’s commitment to offering low prices and availability, aligning with consumer needs and expectations.

Comparison of Organizational Environments

For this section of QSO 455 2-1 Discussion: Retail vs Manufacturing, we will differentiate the organisational environments of the companies we selected.

• Compare and contrast the supply chain strategies of both selected companies. 
• Discuss how each company’s approach to dealing with customers, stakeholders, and internal business operations differs and what these differences imply about their respective supply chain efficiencies.

Example

Apple’s supply chain is tightly controlled, focusing on high-quality product design and premium customer experiences, which demand precision in manufacturing and delivery (Budiono & Ellitan, 2024). They engage with a select group of suppliers to maintain quality and innovate efficiently. Conversely, Walmart emphasises cost efficiency and broad accessibility, relying on an extensive network of suppliers and a robust distribution system to ensure low prices and high availability. Walmart’s approach involves aggressive inventory management and streamlined logistics tailored to serve a diverse customer base efficiently. These contrasting strategies highlight Apple’s emphasis on quality and exclusivity versus Walmart’s focus on accessibility and cost management, each optimising its supply chain to cater to distinct market needs and operational goals.

When responding to at least two of your peers, be sure to analyse their posts. Do you see any other differences that were not addressed?

Peer Responses

Responding to peers is one of the vital parts of the QSO 455 2-1 Discussion: Retail vs Manufacturing. We need to provide at least two peer responses. I will provide one example post. You can write your peer responses by keeping the below points in mind.

• When reviewing your peers’ analyses, focus on any additional insights or overlooked differences. 
• Your response should be concise, respectful, and constructive, aiming to add value by highlighting unique perspectives or supporting overlooked details.

Response 01

Nice analysis of Apple’s global supplier network! You highlighted important points about stakeholder roles. Adding to your points, it might also be useful to consider how Walmart manages its supplier relationships differently, especially in terms of local versus global sourcing strategies.

Closing

By completing the QSO 455 2-1 Discussion: Retail vs Manufacturing, you will gain a deeper understanding of how supply chain elements such as customer engagement, stakeholder management, and operational strategies vary significantly between the manufacturing and retail industries. These insights are crucial for developing a holistic view of supply chain management and can be applied to future challenges in your career or studies. This Owlisdom How-To Guide not only enhances your analytical abilities but also equips you with practical knowledge to approach supply chain complexities effectively.

You can also read  QSO-455 next module  2-2 Short Paper on Benchmarking

References

Budiono, K., & Ellitan, L. (2024). The Efficiency and Performance of Apple’s Supply Chain Management. ULIL ALBAB : Jurnal Ilmiah Multidisiplin, 3(5), 46–67.

Chen, X., Liu, Y., & Gong, H. (2021). Apple Inc. Strategic Marketing Analysis and Evaluation. 3053–3061. https://doi.org/10.2991/assehr.k.211209.499 

Foster, S. T., & Gardner, J. W. (2022). Managing Quality: Integrating the Supply Chain. John Wiley & Sons.

Theophilus, C. (2022). Problems and Challenges Encountered in International Marketing (On the basis of “APPLE Inc”) [Thesis, Private Higher Educational Establishment-Institute “Ukrainian-American Concordia University”].

Toma, S.-G., Grădinaru, C., & Săsean, A. S. (2022, May 27). Viable Business Models in Global Retailing: The Case of Walmart. New Trends in Sustainable Business and Consumption. https://doi.org/10.24818/BASIQ/2022/08/095 

Vadakkepatt, G. G., Winterich, K. P., Mittal, V., Zinn, W., Beitelspacher, L., Aloysius, J., Ginger, J., & Reilman, J. (2021). Sustainable Retailing. Journal of Retailing, 97(1), 62–80. https://doi.org/10.1016/j.jretai.2020.10.008