Supply Chain and Operations Strategy for Intel: Evaluating Concepts, Drivers, and Strategic Methods

This report discusses the principles and concepts of supply chain and operations management, key drivers of effective supply chain management, and how effective supply chain and operations management can enhance competitiveness for Intel. It also examines key decisions made by ventures to improve their supply chain and operations, and reviews the application of varied strategic methods to supply chain & operations management in companies.

SUPPLY CHAIN AND
OPERATIONS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1- Evaluating concepts & principles of operations and supply chain management....................3
2- Critically discuss key drivers of effective supply chain management....................................6
3- Assessing how effective supply chain and operations management can enhance
competitiveness...........................................................................................................................7
4- Critically examine key decisions made by ventures to improve their supply chain and
operations....................................................................................................................................8
5- Critically review application of varied strategic methods to supply chain & operations
management in companies..........................................................................................................9
6. Assessing The relevance of performance measurement within supply chain and operations
management..............................................................................................................................10
7. Evaluating various financial, non-financial , single and multi factor performance measures
applicable to intel .....................................................................................................................11
8. Evaluating the selection and application of key performance indicators for effective supply
chain and operations management at Intel................................................................................12
9. Intra and inter-organisational benchmarking can help Intel to improve their supply chain
and operations management efficiency.....................................................................................15
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Supply chain refer to strategic operation of a company that put direct impact on progress
and success of organizations. With this operation, varied companies in the recent time has taken
approaches to supply their products across national boundaries in term of new market, where
success chances accessible in bulk. This term is also defined as procedure of supplying goods in
those markets where demand ration is high regarding quality item, which in turn provide
unpredicted advantages to organizations. Operations strategy also play significant role in the
context of rapid organizational growth.
The current assignment will be based on Intel, which falls under the list of top 10
computer chips manufacturing organizations in the world. The study will explain principles &
concepts of supply chain and operations management as well as their effectiveness in regard to
enhance competitiveness. It will also define drivers, approaches and performance measures
regarding these two terms. Furthermore, the report will justify financial, single, non-financial and
multi factor performance measures, applicable to firm and application of performance indicators
for both operations at Intel. Lastly, the assignment will clarify how inter-organizational and intra
benchmarking can aid companies like chosen one to enhance their supply chain & operations
management efficiency.
TASK
1- Evaluating concepts & principles of operations and supply chain management
Operations management is defined as area of effective administration that is fully
concerned with developing and controlling the key procedure of production & redesigning
venture operations successfully (Naveh and Lei, 2019). It encompasses process of managing
effective and multiple operations and procedure that are running in a company, no matter how
big or large it was. Operations management provide unexpected benefits to Intel, which may put
direct impact on its profit margin, revenue and brand image in the market, where it has
established its venture successfully. This term covers 10 strategic principles and these are;
Principle 1- Reality
According to this rule, management may concentrate on wide issues as opposed to small
approaches that may become a part of that.
Principle 2- Humility

It is quite essential for administration or manager to comprehend as well as respect the
limitations in order to obtain desire outcomes.
Principle 3- Organization
This principle of operations management may drive the attention of administration
toward developing strategic plan and control production process that may foster consistency and
predictability.
Principle 4-Accountability
It may enable manager to understand the responsibility of managing operations whether
they are small or large and also check everything to assure that success of a company is possible.
Principle 5- Change
Operations management section in the companies may take approach to accept the
change and conduct their practices accordingly (10 Operations Management Principles, 2022). It
may give them power to enhance operational efficiency and effectiveness.
Principle 6- Quality control
It is important for them to make assure that operations are control and run in effective
manner in the place. It can be said that without managing quality of products, the success is
impossible for a company.
Principle 7- Success
They may take initiative to make potential consumers happy and highly satisfied, which
enables companies to achieve greater success.
Principle 8- Know your rivals.
According to this principle, operations management may concentrate on determining
competitors and strategies that they may adapt to manage their operations successfully.
Principle 9- Causality
According to this term, manager may take initiative to determine underlying issues and
reduce them in systematic manner forever.
Principle 10- Consumer collaboration
They may also take approach to collaborate and coordinate with potential customers,
whether they are new or existing as they may provide benefits to companies.
Supply chain management is considered as active and effective administration of
supply chain practices that aid to enhance consumer value and allow management to achieve

strategic goals of a company such as Intel. This department is accountable to handle entire
production flow of a product and service, which is quite essential for them to do so (Bastas and
Liyanage, 2019). Supply chain management encompasses 7 key principles and these are
following:
Principle 1-
The first principle of supply chain management may drive the concentration of manager
and leader toward comprehending consumers needs first, which enable them to manage supply
chain accordingly.
Principle 2-
It may allow them to take approach to customize wide and strategic logistic network,
which help in success and unpredicted growth of ventures. After making segmentation of target
market based on varied requirements, supply chain management manager may tailor logistic
chain to serve different segments.
Principle 3-
They may effort to align consumer demand and need planning across supply chain. Along
with this implication they may take attempt to share demand information with trading partners as
key stakeholders so no one may keep unessential stock.
Principle 4-
SCM manager may take initiative to keep elements and assemble them successfully only
after target market place the order, to increase product variation.
Principle 5-
According to this principle, manager may collect more data about outsourcing from
infographic named 7 Pitfalls of outsourcing.
Principle 6-
It is quite essential for supply chain management manager to strategically develop IT that
aid multi-level decision-making and contribute to make organizations successfully, which is
important and beneficial too. It may provide overall understanding of procedure insufficiencies
and support to identify form of innovation that might be needed.
Principle 7-
This term drives the focus and overall attention of manager toward conducting activity
based on costing. For example, they may take approach to consider activity based costing

method and apply to identify consumes profitability. It is better for them to exploit time driven
activity based costing methods, which enable them to comprehend changes regarding activities,
current procedures, consumers and products.
2- Critically discuss key drivers of effective supply chain management
Production-
It is one of those drivers that is related to supply chain management and contribute to
achieve set aims related to this term. It is important for SCM manager to adopt flexible
production techniques and approaches that may support to enhance operational efficiency and
enable to produce wide range of quality products (Five Supply Chain drivers that make or break
your forecasts, 2022). Intel and its management may take initiative to utilize each item to
enhance consumer satisfaction, which is quite essential for them to do so.
Inventory-
This driver may drive the attention of supply chain management toward optimizing
strategic responsiveness often dictates stocking higher goods extents and at more ware house
places. It can be said that efficient and effective inventory permit management for unpredicted
modifications in demand that may be met immediately. When the process or operation of
inventory management is manageable, organization may gain competitive advantages in term of
reducing inventory phases of all products., especially those that may do not sell quickly.
Location-
In order to obtain unexpected growth and success, Intel and its administration may effort
to establish venture outlet in specific location where people may reach easily and purchase what
they prefer according to their needs and requirements (The New Drivers Of Supply Chain
Management Today, 2021). It can be said that prioritizing responsiveness regarding location as a
driver often encompasses increasing convenience by developing many locations near consumer
groups or target market. Many sites or locations of Intel may allow firm to response rapidly to
customer demand and also contribute to increase operating costs in term of operating varied
stores.
Transportation-
With better transportation options, Intel and other companies may successfully manage
their supply chain that in turn increase productivity, enhance consumer satisfaction and
maximize profitability. By using faster and useful modes of transportation, firm may take

approach to reach target market easily (Govindan and Hasanagic, 2018). They may take
approach to use budget friendly methods that contribute to provide high levels of responsiveness
in last mile delivery via utilizing a transportation method to deliver goods at time that may
decided by company.
Information-
Along with above drivers, the current one may also put direct impact on supply chain
manageable operation of Intel, in term of collecting and sharing key info that make products
accessible in the market to target consumers. It is considered as powerful driver that may grow as
technology for transferring data become easier or widespread to utilize. Information is a essential
commodity because it may apply directly to take right decision that help organization grow
continually.
3- Assessing how effective supply chain and operations management can enhance
competitiveness.
There are different types of operations has been encompasses in a company that play vital
role in growth and their unpredicted success. In case of Intel, supply chain and operations
management contribute in effective manner in term of enhancing competitiveness, which is quite
essential and beneficial for rapidly progress of organization (Um and et.al., 2017). It can be said
that supply chain management may influence on competitiveness in term of enabling firm to give
tough competition to its rivals that are operating their ventures in similar industry or market. This
term may enhance this concept in form of designing and delivering products on time in the
market, where number of consumers accessible and tend to purchase that. Supply chain
management may give firm competitive benefit and enhance the same concept, which drive
manager attention toward reducing risk of managing supply chain and cost of operations
successfully. It may enable organization to rely on practice and find better way to come up with
creative ideas on how to potentially generate revenue more than other brands.
Like supply chain, operations management also support to enhance competitiveness in
form of managing varied operations of company in effective and productive manner (Benefits of
Operations Management, 2022). It may enable firm to reach expect outcome without taking too
much stress about what its rivals efforts to gain competitive benefit, for which strategic
operational management practices is needed. It is fact that in the recent time competitive
environment reaches high in the world of business, and drive the attention of companies toward

strategic planning regarding operations management. This operation may increase
competitiveness in form of improving quality control that bring more advantages for Intel. They
may take approach to improve product quality and control everything according to plan, which
may create or develop by the operations' management manager (Kshetri, 2018). This section
contributes to make organization capable to implement backup plans that enhance
competitiveness and allow gaining competitive advantages in bulk, which is not that easy for any
company to do so. Operation department focus on improving products quality and adding more
features into existing according to market or consumer need, who expect to purchase satisfactory
goods from well-known brands like Intel.
4- Critically examine key decisions made by ventures to improve their supply chain and
operations
In order to improve supply chain and operations, Intel may take strategic decision, which
in turn provide expected outcomes to management in varied terms. For example, organizations
may take decision to utilize the best approaches such as real time inventory management,
which is quite essential and beneficial for them to utilize systematically. This modern software
enable companies to take pleasure of strategic and useful inventory features that may provide
real time visibility of exact inventory levels. The best part of this method is that it may do not
have specific limitation related to flexibility that may match ventures unique needs and progress.
Like this decision, organizations may improve their supply chain operation and enhance their
effectiveness in term of increasing transparency or taking this decision to grow rapidly and in
productive manner. It can be said that by creating or increasing transparency, firms may take
benefit of reducing unpredicted inventory & financial losses that may put negative impact on
companies profitability and revenue as well as businesses image. It may enable them to manage
risk and eliminate the reason behind occurrence (El Baz and Ruel, 2021).
Along with improving or enhancing supply chain, businesses may improve their
operations by taking decisions to using multiple approaches. For example, they may take
initiative to keep up with trends that consumers prefer to follow and take products purchase
decisions accordingly. Under this decision, they may perform according to lean manufacturing or
production, which is one of those operation management approaches that contribute to save
money and efforts and eliminate risk of being failure (Ghadi‐Sahebi, Ebrahimi and Parvin‐
darabad, 2021). It may drive the attention operation manager toward considering current trends

that target market follow and refer others to do so, which may enhance their satisfactory level
better than last few years or months. This decision may affect positively and contribute to
increase profitability that is significant for organizational continuous growth. It may open new
growth opportunities and ways for companies, beyond stakeholders expectations. All above
decisions bring several advantages that individual person in a company may do not expect, but
have to believe that it will happen because they are taking right decision and performing
accordingly.
5- Critically review application of varied strategic methods to supply chain & operations
management in companies
Real time inventory management is the best approach that most of the companies are
using and will utilize to gain a lot of advantages (Shokouhifar, Sabbaghi and Pilevari, 2021). It is
also defined as automated procedure that enable firms and their management to record sale and
purchase via utilize of software such as ERP. With this method, organizations may take pleasure
of enhancing inventory management practices and their effectiveness, which is important for
them to enhance that successfully. It may provide firms a clear picture or information about what
happening with inventory and what need to be done further for purpose of enhancing supply
chain management efficiency. More than periodically updating inventory at pre-identified
intervals, with this technique firms may get up to update information on all their supply chain
procedures and activities, especially when they needed that. It may cater benefit to companies in
term of giving management chance to enhance consumer experience.
Lean manufacturing is related to operation management, which enable manager to
manage everything systematically and up to the market in term of considering customers needs
and trend that they follow (Buer and et.al., 2021). This method is based on ideology of increasing
productivity while minimizing waste within a company that may put negative impact on sales
and success. In order to gain desire outcome by using this technique, it is necessary for
management to consider and follow the key principles of Lean manufacturing approach that aid
to enhance operational effectiveness and efficiency more than other companies that are running
their ventures in same market with skilled players.
Six sigma is another operation management technique that organizations may utilize and
gain competitive advantages through that. It is mostly utilized to aid ventures improve current
products quality, procedures and services that contribute to enhance consumer satisfaction, in

term of discovering and reducing defects that put direct impact on sales and success of brands. It
may enable candidates and management to improve or streamline quality control in the context
of production so there is little to no variance throughout.
6. Assessing The relevance of performance measurement within supply chain and operations
management.
A performance measurement system plays a vital role in managing the company
operations as it provides the important data and information which is really necessary for
decision-making process and action. Many companies are focusing on areas such as design of
performance measurement system with supply chain management (Jetter, Eimecke and Rese,
2018). Nowadays, evaluation of supply chain performance is quite important for the firm's
operations since the major objective of supply chain is to increase the overall value. Supply chain
management is maintained in the Intel company after the selection of indicators which is helpful
to measure the performance and manage organizational operations. Performance measurement
system which is also known as PMS is developed by the firm to assess improvement
opportunities. It is also helpful to improve effectiveness and efficiency of actions. For example-
Intel company used its supply chain management effectively to improve the long term
performance and the supply chain as whole. With the help of performance measurement within
supply chain, company has obtained competitive advantages.

As the Intel has to reduce the cost of supply chain for the atom chip, the company is
facing the challenges because they have only one area of leverage. So, the firm had an option to
reduce the inventory level, which they had to keep high in order to support a nine-week order
cycle. Therefore, the management team is focusing on reducing inventory level and bring the
cycle time down with the help of performance measurement to track the important things.
By adopting performance measurement tools, company can easily measure financial
performance in order to keep their cash flow healthy and business operations can be run
smoothly (Eshtaiwi and et.al., 2018). With the help of performance measurement, firm could find
out real world ways to accomplish business goals. With the help of metrics, organization can
improve overall results and target area of business which needs more improvement. Intel can
track a business progress and assess the status of each area such as sales, financial,marketing and
others. For example- if a company want to know about marketing and sales metrics, they can use
the metrics to find out overall performance of team. Which includes social media performance,
financial potentials and other services. Intel is successfully using metrics to improve productivity
of business by revealing the issue related to company.
Operation managers of the company used this measurement process to make important
decisions. It provides right direction for future strategic growth and development and it will also
provide information about loss, profit, revenue and sales.
7. Evaluating various financial, non-financial , single and multi factor performance measures
applicable to intel
Financial performance measures plays a vital role in the company as it is helpful for
future decision-making process. It can give proper review if the company and its department
efforts paid off as determine what has to change and what the necessary improvement is needed
to develop performance (Silva, Nuzum and Schaltegger, 2019). With the help to financial
performance measures firm can evaluate its average order value, profit margin, productivity and
earnings. Nowadays, managers of the company have tried to remedy the inadequacies of present
performance measurement systems as most of them have focused on utilizing financial measures
more effectively. By understanding financial measurement company can be better positioned to
know how the firm is performing in the competitive world. With this knowledge, Intel is

adjusting the goals of department and contribute to important objectives. For top-level
management of company these metrics should be made available internally in the form of reports
and email updates on monthly or weekly basis.
Non-financial performance measures show the importance of identification of strategy
improvement, drivers behind financial measures and visibility of effectiveness. It allows
improving focus on long term goals and objectives. Non financial statement are highlighted in
the books of company so that it can be used in a different way to determine the best ways for
companies to improve their desired goals and become more profitable. To deal with supply chain
management challenges Intel measures customer satisfaction, new adoption rate of product and
market share. Understanding these metrics influence the strategy of business is a critical task and
skill for all the managers of the company which is important for them to develop by improving
leadership skills.
Managers of the company understand the importance of single performance measures
system as its strongly affects the behaviour of market. With the help of balance scorecard,
managers can get fast view of the business as it includes financial measures also that can tell the
results of actions that has been already taken. With this company can easily make decisions
about business and operational measures on satisfaction level of customer (Ka, Ab and Lb,
2019). On the top of that, it will show how the customers see the company performance and what
more improvement is needed to create value such as innovation.
In multi factor performance measurement model, total productivity index is improved on
the basis of productivity indices of the key terminal parameters (Multi factor productivity
measurement model for organization, 2022). Both the static and dynamic parameters and
indicators depends on target productivity factor and also actual factor values. It can be used by
organization and agencies to improve efficiency and strong knowledge for internal and external
business operations.
8. Evaluating the selection and application of key performance indicators for effective supply
chain and operations management at Intel
Nowadays, in many business activity, supply chain management and operation
management need to focus on improvement to compete in the market area. In order to understand
this performance and knowing about the supply chain performance is satisfactory the company

needs to use key performance indicators (Ramezankhani, Torabi and Vahidi, 2018). With the
help of KPI firm can measure the progress and achieve goals by understanding the nature of
indicators. For performance measurement, the company can ensure that business is running
smoothly and continuously. If the performance of Intel moves in the wrong direction then firm
can quickly respond towards this. For any improvement, the company needs to focus on Key
performance indicators and set a higher target if necessary.
Apart from improving and competing with respect to goals, Key performance indicators
plays a vital role in retaining customers and attracting new clients. With the help of proper KPIs,
firm can monitor the satisfaction level of clients, it will also monitor through agreed KPIs
between customer and enterprise. KPIs focus on improvement which is necessary to accomplish
business goals and objectives. Without KPIs there wouldn't be an effective way in order to
determine various issues and make adjustment on the basis of this information. Supply chain
analytics have their own set of the most essential key performance indicators.
Selecting the right KPIs for supply chain is critical task as this process requires
companies to clearly understand the importance of each indicator (Katiyar and et.al., 2018). It
also requires a clear objective and goals to develop the performance indicators that will allow
firm to proper track on progress. So, it is important for managers to collect the relevant data
which is accurate and useful as well. Without proper information company can not facilitate
improvement across the firm.

Source: (KPIs financial and non financial, 2022)
There are some KPIs that can be very useful for supply chain management-
Inventory accuracy = with the help of this method, company can compare the number of items
that are in stock on the regular basis.
Inventory turnover- it is the metrics used by firm to measures how well the firm is able to
move its stock or inventory. With the help of this method, company can help to gain better
understanding of supply chain efficiency and effectiveness (Kamble and Gunasekaran, 2020).
Basically, the manager of Intel will be able to highlights how often the firm is able to sell its
entire inventory over the time period. For any firm or its management team, it is important to
have ability to move inventory rapidly, as it will lower storage costs. On the top of that, it allows
the managers to sell products at a good price instead of creating promotional activities to clear
stock.
Delivery times- it is the important KPIs in supply chain because it is helpful to measure
whether on time delivery has done or not. The reason behind using this metrics is straight,

because it provides information about satisfaction level of customer over the shipment
time/delivery time.
By evaluating this study, it is suggested to focus on inventory turnover and accuracy of
stock as the company has to reduce the supply chain costs for the atom chips but has only one
area of leverage- inventory.
9. Intra and inter-organisational benchmarking can help Intel to improve their supply chain and
operations management efficiency.
Benchmarking is the systematic process used by company to measure services, goods and
processes against those of company's known to be leaders in one or more aspects of their
business operations and activities. Basically, company can compare business processes and
business performance metrics to industry best practices from other firms. Benchmarking is one
of the most important tool of decision-making process in the company.
Intel use benchmarking or goal setting method effectively, as it allows a firm to assess the
benefits and opportunities they have for the control of logistics in its supply chain. It includes
inventory accuracy, turnover related to inventory and productivity. By using a benchmarking
process effectively, company can estimate various opportunities related to logistics by the
improvement implementation. Benchmarking is one of the most used method as it helps to
identify where improvement can be made or deficiencies eliminated. An effective method that is
helpful to do this is to perform a test of benchmarking.
By adopting this method, company can easily gather all the past data and develop a plan
of action in order to improve the process that was assessed. It is important to identify types of
benchmarking so that each type can provide important and useful information to the business
operation hence, operations management can be done.

Source: (Eisert and et.al., 2020)
Internal benchmarking focus on the business processes of a single company, it allows a
firm with a various facility that operate the similar supply chain processes. They can easily
compare and contrast the various ways in which the business process is performed in those
facilities. Inter benchmarking will make comparison how each center performed and what are the
improvement is necessary after comparing the results of benchmarking. For example- if Intel set
goals and benchmarks the processes around delivery time, inventory accuracy and turnover, the
result of the facilities of the assessments can be helpful for firm to improve things. Hence, inter-
organisational benchmarking can help Intel to improve their supply chain and operations
management efficiency.
External benchmarking allow the different areas of examination outside a firm's sector.
This method adds value for the companies that have already performed inter benchmarking and
hence wants to investigate different ways in which they can easily improve their internal
business performance (Holm, 2019). With the help of this process company can make necessary
improvement as this method takes a firm outside of its own sector and exposes them to various
techniques and procedures.

CONCLUSION
To conclude, supply chain management is the process of the flow of product and services
and includes all the business operations starting from raw material to final completion of
products. To be successful it is important to understand the importance of supply chain
management and concept of business operations. By evaluating the report, it has been concluded
that company want to reduce supply chain expenditure after bringing its low cost atom chips to
the competitive market. Somehow, the firm has successfully overcome with this cost reduction
challenge with the help of marketing strategies. The firm has adopted Key performance
indicators and metrics such as benchmarking to measure the overall performance.
Also, the firm has successfully evaluated the key decisions to improve their supply chain
and operations. Intel is adopting its supply chain management effectively in order to handle the
entire production flow of service or goods. The firm is effectively manages its delivery and
inventory to satisfy its customers. In addition to this, the company is effectively used KPIs and
select right KPIs that is inventory accuracy and delivery time for effective supply chain and
operations management. Intra and inter benchmarking is helpful for company to understand
business practices from within the firm and help to make improvement.

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