Supply Chain Management: Key to Business Success - Essay Sample

Introduction

As a way of enhancing business success, companies are so concerned about how their products and services flow. Companies engage components such as planning, information, production, distribution, and much more, which assist in improving supply chain management (Christopher, 2016). As such, companies are able to increase their competitiveness and customer satisfaction. Customer satisfaction forms a strong background that assists companies to effectively engage in different production techniques, which promote their performance (Meredith and Shafer, 2019). As a way of improving supply chain performance, different companies use diverse models such as business-to-business (B2B) and business-to-consumer (B2C). Usually, B2B is the situation in which a company sells products and services to another business. This form of business model does not engage individual consumers in the transaction. TireHub is an example of a company that uses the B2B model, whereby it provides retailers and other businesses with tires for sale (Hartmann, Rutherford, and Park, 2017). On the other hand, B2C is a model that occurs when a company sells products and services to businesses and consumers directly. In this case, the business sells its products to end-users, consumers. McDonald's is an example of a business that uses the B2C model, which sells products direct to consumers.

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TireHub is an organization that distributes different types of tires to dealers and retailers in various parts of the United States. The organization partners with the dealers to assist in ensuring a continuous supply of different types of tires. In this case, TireHub tries to balance between demand and supply. Due to the condition, TireHub forms a background structure that promotes the growth of producers and retailers. The company takes the nature of the B2B model since it only participates in the delivery process to business consumers and not end-users (Hartmann et al., 2017). The organization gets the product from major competing companies Goodyear and Bridgestone (Lambert and Enz, 2017). In this case, TireHub collect tires from Goodyear and Bridgestone, then distribute to different dealers and retailers across the United States (Henriksen, Frisbie, and Ferrell, 2019). The application of software assists the company to effectively connect with dealers and retailers, thus promoting the distribution technique (Henriksen et al., 2019). According to the management, the application of supply chain planning software assists the firm to effectively collaborate with other companies to ensure there is a balance between demand and supply (Christopher, 2016). As a way of increasing trust, the company ensures all products meet the quality standards of consumers. The application of machine learning augments demand sensing assist the management in understanding how to respond to market change, thus altering their distribution rate. Additionally, the application of software assists the management to connect demand to supply in real-time (Henriksen et al., 2019). The approach ensures the right goods are available at the right time and location. The approach ensures a cycle that enhances the performance of the company. Usually, the distributors carry 20 to 30 different brands from several producers (Hartmann et al., 2017). As a way of enhancing the distribution, the company has more than ten thousand storage units across the country.

McDonald's is one of the most successful food companies in America. The business has more than 38,000 restaurants that operate in different parts of the world (Phoon, 2019). McDonald's acquires raw materials from farms such as Hildebrandt Farms and Lopez Foods (Phoon, 2019). As a way of improving its supply chain management, McDonald collaborates with suppliers to ensure the health and safety products for people to consume (Phoon, 2019). As such, the business engage in complex system of direct and indirect suppliers to ensure high quality raw materials. Direct suppliers operate in the management of purchase and distribution. The company engages a vertical integration technique, which assists in reducing the cost of production, thus increasing income (Christopher, 2016). At grower level, McDonald partners with suppliers and farms to ensure quality products, which is a key aspect that consumer use to maintain their loyalty. The raw materials, such as poultry, are processed to products such as Chicken Vista (Phoon, 2019). These products are packed based on different quantity. The company uses environmentally friendly materials to avoid negative effects on leftover materials. The company has refrigerated trucks that provide transport services. These trucks ensure products maintain their values and little external interference (Meredith and Shafer, 2019). The trucks plays a vital role in the logistics and distribution. As such, the technique assists in the distribution of food materials in different restaurants (Phoon, 2019). In the restaurants, consumers are provided with a wide variety of materials, where they choose based on their needs. The application of vertical supply chain has highly impacted how McDonald's operates.

TireHub and McDonald's have a different working system, which is effectively-recognized due to the model each company uses. In this case, TireHub does not deal with end-users directly; instead, the company assists other businesses to operate through enhancing tire distribution (Henriksen et al., 2019). Due to the concept, there is no relationship between the end-user and the company (Hartmann et al., 2017). However, companies that rely on TimHub aim at building a powerful system that promotes a long-lasting relationship with consumers (Lambert and Enz, 2017). On the other hand, McDonald's has direct interaction with end-users (Phoon, 2019). The kind of products and services the company provides are meant to be used by end-users. As a result of the direct connection, McDonald's aims at creating a good relationship with consumers to enhance their purchase ability.

Emotional control between the two business models brings a major variation. In this case, consumers that use TireHub aim to improve their performance (Henriksen et al., 2019). The system lacks a direct emotional connection between businesses and end-users of particular services. On the other hand, McDonald's offers products that aim at fulfilling the desire and needs of end-users (Phoon, 2019). The approach promotes their emotional aspect toward particular products. Therefore, using products such as Chicken Vista aim at improving the lives of consumers by providing the best taste and nutritional values (Phoon, 2019). The style activates consumer emotions, which maintains their loyal toward the business.

TireHub, which uses the B2B model, aims at building a personal relationship that influences marketing. The approach assists in building a powerful system, which pushes the development of long-term business consumers. Based on the approach, consumers are given the opportunity to engage in and build a long-lasting relationship (Meredith and Shafer, 2019). In this case, TireHub acts as motivation factors that attract other companies to engage in the business. Additionally, TireHub deals with a large quality of products, which gives business consumers an opportunity to select products that offer satisfactory services (Hartmann et al., 2017). On the other hand, McDonald's provides a clear connection between consumers and management (Phoon, 2019). As such, McDonald's is driven to ensure there is a strong relationship with end-users, who are the base for the company growth.

How are both companies dealing with customer service? Explain the differences.

In both companies, consumers are critical aspects that influence their performance. As such, Both TireHub and McDonald's strive to ensure they build a strong customer relationship (Christopher, 2016). Customer relationship forms the base of a strong market ground, which assists in building a long-term performance. Providing quality services creates a buying cycle, which is crucial in the growth of the companies (Phoon, 2019). Due to customer services, both companies connect with clients and ensure they remain loyal. Additionally, both companies maintain open communication, which assists consumers to express their emotions. Consumers are allowed to give their feedback as a way of improving service delivery.

Despite some similarities in consumer services, there are numerous differences that appear in both companies. In TireHub, the company creates an environment that assists consumers in making better buying decisions (Henriksen et al., 2019). In this case, consumer services are highly bounded on a content guide that the company provides during the buying process. On the other hand, McDonald's lacks a content guide, which forces consumers to conduct research, and the approach may hinder their understanding (Lambert and Enz, 2017). The approach hinders buying decisions, which affects consumer services (Christopher, 2016). As a way of improving consumer services, TireHub focuses on address both the business and emotional needs. The approach ensures the management highly concentrates on the needs, which promotes the interaction and delivery process (Hartmann et al., 2017). In contrast, McDonald's focuses on the emotional needs of consumers, which is based on human experience (Phoon, 2019). As such, all the products that are sold by the company aims at improving consumers' experience to promote their loyalty. Furthermore, TireHub creates a personalized buying process that occurs due to the partnership between different companies. The approach impacts the end-to-end interaction, which may and design consumer demand (Meredith and Shafer, 2019). However, McDonald's creates a direct buying process, which promotes the transactions between the company and consumers. Consumers are given the opportunity to select products directly from the company.

How are both companies dealing with logistics? Explain the differences.

Logistics is a crucial process that highly impact supply chain management. Usually, in supply chain management, logistics is deployed to control the transportation of goods and services from one location to another (Meredith and Shafer, 2019). As a way of improving the logistic process, companies engage in activities such as inventory, packaging, supplies, and distribution (Christopher, 2016). In Both McDonald and TireHub, logistics is a crucial process that assists in attaining the business goals. Usually, both companies collect materials and distribute them in different units and branches. As a way of enhancing the logistic process, McDonald engages process and packaging, which assist in maintaining the quality of products. TireHub engages distribution, whereby it collects products from companies such as Goodyear and transport to dealers (Henriksen et al., 2019). Additionally, both companies offer warehouse services, which improves the distribution process across the operating environment. The transportation of materials ensures both business consumers and consumers can acquire products at any time (Phoon, 2019). As such, the companies help to connect producers and the end-user. The introduction of storage gives both companies an opportunity to provide a wide variety of products, which gives consumers an opportunity to select an alternative (Hartmann et al., 2017). The approach creates a networking system that increases the growth of all businesses that are involved in the supply chain.

Even though there is a similarity in the logistic, there are numerous differences that are clearly outlined in both companies. Usually, McDonald’s uses a B2C model, which connects the producer and end-users (Phoon, 2019). In this case, Mc...