“An organization’s goals and strategic objectives should determine its overall supply chain management strategy. The SCM strategy in turn determines how the supply chain will perform with respect to efficiency and effectiveness. The four primary drivers of supply chain management are: facilities, inventory, transportation, and information” (Baltzan/Phillips, 2010).
“ An organization can use these four drivers in varying measure to push it toward either a supply chain strategy focusing on efficiency or a supply chain strategy focusing on effectiveness. The organization must decide on the trade-off it desires between efficiency and effectiveness for each driver. The selected combined impact of the various drivers then determines the efficiency and effectiveness of the entire supply chain” (Baltzan/Phillips, 2010).
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Now they did accomplish this task but only after the disaster hit and by then it was a little late due to the fact that they could have had things there beforehand.
3. Why is it critical to FedEx’s success to be able to handle all types of global disasters? Highlight FedEx’s use of the information driver.
I think it is critical to FedEx's success to be able to handle all types of global disasters because no matter what happens its customers expect a safe and timely delivery. “FedEx's entire business strategy focuses on its customers' need for highly effective transportation methods “ (Baltzan/Phillips, 2010). It looks bad on a company when customers' expectations are not met.
An example of FedEx's use of the information driver during Katrina is when Mike Mitchell created a reliable radio network by placing a radio tower on the top of the building so all of the rescuers could communicate on walkie-talkies. Basically, FedEx shared the technology with the rescuers to coordinate supply chain activities.
Summary and Conclusions
Supply drivers make a huge difference in today's way of delivering things whether it is in a normal everyday situation or a disaster situation. People depend on big box companies to seek out ways to relieve them of certain burdens during disasters like Katrina. If you take a look at what FedEx was able to accomplish it makes you wonder why some of the other companies that where not even involved with the storm did not even do anything to help their competitors or even the people in general. Information is a big part of today's society and it needs to be spread in times of need to make things more efficient and effective.
Baltzan, P. / Phillips, A., (2010). Supply chain management. In Baltzan/Phillips, Business Driven technology (pp. 332-341). McGraw-Hill Irwin.