Engineering Logistics: Accenture Case Study and Analysis Report

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This report examines engineering logistics, emphasizing the importance of efficient and responsive supply chains for business success. It explores how organizations can gain a competitive advantage through supply chain networks and strategic changes to adapt to dynamic business scenarios, such as new product introductions and changing demand. The report highlights the benefits of integrated supply chains, including cost reduction and improved service levels, and discusses key attributes like integration, time/service, and product movement. It also delves into the role of supply chain information technology (SCIT) in optimizing supply chain management, focusing on communication, data analytics, and the use of technology for vendor selection and cost savings. A case study on Accenture's success in increasing market capitalization is included, alongside discussions of both the advantages and disadvantages of integrated supply chain management.
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Running head: ENGINEERING LOGISTICS
Engineering Logistics
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1ENGINEERING LOGISTICS
1. It is an important part of business to have a set of efficient, responsive and fast supply
chain. An organization can deliver better value by gaining competitive advantage. This
can be done by running supply chain networks, evaluating and implementing the
necessary changes which will respond to the dynamic business scenarios. Introduction of
new product, changes in demand pattern, addition of new supply sources and change in
tax rules and regulations are included in the dynamic business cases. Supply chain
network is a strong approach which helps to provide a remarkable decrease in the supply
chain costs and thus improves service levels by aligning with the supply chain strategies.
As it is mentioned in the case study, the consultancy firm Accenture is able to increase the
company’s market capitalization above the industry average. For realization of these benefits,
there are important investments done in the logistics system required at the level of supply chain
networks. An efficient logistics system is essential to make the effective use of international
sourcing strategies, specifically the large manufacturing capacity of Pacific Rim and China
(Christopher 2016). It will be helpful for the organization to use supply chain managers in
different sectors that are looking for better visibility of the whereabouts of the supply chains and
access more appropriate data at a faster pace.
2. Integrated supply chain allows a company to highlight the on those assets which would
allow the organization to move forward by achieving rewards. These are considered as
assets of the organization which deliver a strong impact on the revenue system. This, in
turn needs to be enhanced as much as possible because it allows the companies to
improve their products, gain profits and boost market share. ISC is also responsible for
reducing the transactional costs. Without it, there would have been a possibility in
delayed processes leading to unnecessary costs. Apart from these, supply chain also helps
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2ENGINEERING LOGISTICS
in ensuring quality throughout the process. Along with the financial advantages, the
company will be able to fight in the competitive market and become the winner with this
management (Mangan and Lalwani 2016).
The disadvantages include excessive regulation where the integration of all the suppliers will
become a challenge in the management of both internal and external supply. There might evolve
a complex scenario where the resource can be wasted unnecessarily due to integrated supply
chain management. A shortage of suppliers who will not permit in the renewal of contracts with
respect to integrated supply chain management will violate the priorities of the specific business.
Again, there could be damage in the balance and checks with the arrival of any kinds of lapse in
the compliance checks.
3. There are a number of key attributes involved in the logistics system. According to the
case study the three significant aspects are integration, time/service and movement of
product. The process of logistics interfaces and interacts with the total company and also
with the external companies, vendors, customers, carriers and other stakeholders of the
company. Logistics is responsible for the movement of products from the vendors to the
delivery at your customers’ doors. This involves the moves through manufacturing
facilities, warehouses, and third-parties, such as re-packagers or distributors. It is not only
about shipping and receiving, nor is it traffic or warehousing but something more than
that (Ross 2015).
Movement of product is sometimes the way in which logistics is considered by many
companies. It is considered as a complementary method of the corporate strategy, if the stress is
put on the lower inventories, reduction of costs, customer service or others. Time/ service on the
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3ENGINEERING LOGISTICS
other hand, is a factor of competition, requirements of the customers, company’s place and
position in the industry and the corporate culture involved with it. Integration takes place within
the company, between the company and the customers or between the customers and the
vendors. It is one of the important processes in logistics.
4. Supply chain information technology or SCIT is the prime force behind effective supply
chain management activities. IT provides many opportunities for the companies to
decrease the costs and enhance the responsiveness to the customers’ demands. Other
services enabled by IT in the field of supply chain management are environment friendly
and clean services; less capital intensive services; it is not dependent on location so cam
be conducted from anywhere; it does not need any costly infrastructure facilities. The
different IT solutions involved in the process are- communications, E- mail, electronic
data interchange and enterprise resource planning. With the booming IT industry and
internet being the key driver, the suppliers, manufacturers, wholesalers and retailers are
getting connected.
Internet has a big influence on the total business strategy starting from policy to physical
implementation. The area where the impact of IT is felt in a great way is communication,
selection of vendors, cost saving, reduction in the lead time taken and improves the product
promotional activities (Stevens and Johnson 2016).
5. The three different ways in which technology can fulfill its roles is by using the best
communication tools for the job, availability of good data and access to solid tools of
analytics and staying updated with information. The process of supply chain is concerned
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4ENGINEERING LOGISTICS
with the flow of products and information from one supply chain member to another in
the organization.
Fig: Integrated Supply Chain Model
Source: (Seuring 2013)
In today’s world, there is an immediate need for immediate communication always at an
instant. It becomes convenient but at the same time there is a possibility of miscommunication.
To see and listen to a person while communicating is considered as an effective communication.
In the process of supply chain management, whether monitoring inventories or performance
metrics, technology plays an important role. The main factor behind effective use of metrics is to
have a hold of solid and reliable data. It is important to stay updated with the recent information
through the use of technology which provides knowledge about the industry.
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5ENGINEERING LOGISTICS
Reference
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley &
Sons.
Ross, D.F., 2015. Information Technology and Supply Chain Management. In Distribution
Planning and Control (pp. 827-886). Springer US.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), pp.1513-1520.
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International
Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.
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