Case Analysis 1 Supply Chain Management

A. Identify the Key Issues, Opportunities or Problems (Statement of the Problem)

Statement of the Problem
McKesson should align supply chain with their business strategy that is robust enough to support
all aspects of operation, yet nimble enough to address todays rapidly changing market
conditions.
Few would dispute that we are in a world slower economic growth, unpredictable swings
in demand, and vitality in the prices of key inputs such as commodities. In this new normal, the
supply chain has become a critical asset pursuing global growth and profitability.
Facts of the Case

McKesson needed a balance between operational detail and practical use by executives.
Managerial challenges include a user community with diverse needs and interests.
SCSM has been an innovative decision support tool to allow McKesson to evaluate
policy options in its end-to-end pharmaceutical supply chain. Through its integrated OR
models, SCSM optimizes the distribution network, supply flow, inventory, and
transportation policies, and quantifies the impacts of actions on financial, operational, and
environmental metrics. The solution is the first to provide accurate models of
McKessons key operations, connect them to create an end-to-end view of the business,
and directly ink OR modeling results to a detailed P&L statement

Alternative Courses of Action

An effective business strategy begins with a core strategic vision that establishes the
boundary conditions for your business. Supply chain strategy involves many interlocking
activities and decisions, large and small. According to Michael Porter, strategy guro and
author of Competitive Advantege, successful business strategy relies on the concept of
Fit that is, a group of activity can be copied, the activities taken together form a
system that is virtually impossible to duplicate.

Plan is unique among the major processes is one important respect. While the execution
processes- Source, Make, Deliver, and Return consist of the activities that help the
company produce and deliver products to consumers, plan sets the stage for carrying out
those activities.

Make planning processes as simple as possible and focus on developing plans that are
realistic and executable. This is often hard to do because there are so many factors to
consider: demand at multiple levels, the different kinds of resources needed, and the
various locations involved. At the same time, its important to prioritize the way

resources are used across several paramaters, including products with the highest margins
and global key accounts. Given all these moving parts, optimizing resources across the
supply chain can quickly become infeasible. Instead, simplify the process by focusing on
critical, or bottleneck, resources, and set no more than two decision criteria for
prioritizing markets and customer in case supplies become scarce.
STRENGTHS
Strong penetration Strategies
Service innovation and technology
Efficient supply chain/ logistics
system

OPPORTUNITIES
Globalization. Growing Middle class
globally
E-business

WEAKNESS
Unable to adapt internationally
Difficult to assess
Knowledge cannot be measured

THREATS
Terrorism and wars
Strong competition
Knowledge security

Recommendation
Make planning processes as simple as possible and focus on developing plans that
are realistic and executable. This is often hard to do because there are so many factors to
consider: demand at multiple levels, the different kinds of resources needed, and the
various locations involved. At the same time, its important to prioritize the way
resources are used across several paramaters, including products with the highest margins
and global key accounts. Given all these moving parts, optimizing resources across the
supply chain can quickly become infeasible. Instead, simplify the process by focusing on
critical, or bottleneck, resources, and set no more than two decision criteria for
prioritizing markets and customer in case supplies become scarce.

Exercise 6 Business Analytics

1. What is Business Analytics?
2. What is the importance of Business Analytics?
3. How did Business Analytics evolve in the past years?
4. What is the scope of Business Analytics?
5. Discuss the applications of Business Analytics

Exercise 4 ERP
1. What is the impact of the following to ERP:
Lack of clear responsibility on the part of business units for realizing the benefits and helping
manage the cost of implementation;
Lack of clear accountability to the business units on the part of managers responsible for
ensuring a projects successful completion?
2. What is the greatest opportunity to improve efficiency and how will ERP assist with it?
3. What are the advantages and disadvantages of moving ERP software in the CLOUD? Discuss
your answers

Exercise 2 Supply Chain Management

1. How can supply chain management create a competitive advantage for companies?
2. Give ten (10) companies that use supply chain management, describe the processes and
discuss the benefits

Exercise A Case Analysis: Google and Apple Know Where, Maybe

In April of 2011, some interesting discoveries were made regarding location tracking by Apple
iPhones and iPads and Google Android smartphones. Pete Warden and Alasdair Allan, British
researchers, discovered a file on Allan's iPhone that provided a detailed list of places Allan has
visited in the U.S. and United Kingdom over a 30-day period. The file included a time stamp in
each location.
Similarly, Duke and Penn State student researchers, with the help of Intel, found that 15 of 30
popular Android apps systematically communicated location information to a variety of ad
networks. Those researchers found out that some of the apps transmitted location data only when
displaying specific ads, while others did so even while the app was not running. On some
Android smartphones, the locations data was transmitted as often as 30 seconds.
Well, as a you can imagine, this sent the public into an uproar. If Im using one of Apple or
Googles smartphones, are they tracking my every movement? Those organizations know exactly
where I was and when I was there? The outcry was unbelievable.
Apple and Google went silent on the subject for several days, neither returning phone calls or emails or posting any information on their websites or blogs.
Senator Al Franken, Democrat from Minnesota, quickly scheduled a hearing of the Judiciary
Panels subcommittee on privacy for May 10, 2011. According to Franken, "People have the

right to know who is getting their information and how it is shared and used. Federal laws do far
too little to protect this information No one wants to stop Apple or Google from producing
their products, but Congress must a find a balance between all of those wonderful benefits (from
devices) and the publics right to privacy." After getting little or no response from Apple or
Google, Franken went on to say, "I have serious doubts those rights are being respected in law or
in practice."
At that time, Steve Jobs, CEO of Apple, was on medical leave, and he came back from medical
leave to defend Apples location tracking technology. According to Jobs right-hand executive
Guy Tribble, Apple VP of Software Technology, Apple iPhones and iPads only gather location
data about nearby cell towers and Wi-Fi hot spots. As he explained, "(Apple) does not share
personally identifiable information with third parties for their marketing purposes without
customers explicit consentand Apple does not track users locations. Apple has never done so
and has no plans of ever doing so." Apple intend to continue sending nearby cell tower and Wi-Fi
hot spot location data but will only store that data for 7 days.
Googles long-awaited explanation was similar, with a few stints. Google did admit that Android
devices do harvest location data for marketing campaigns but Google stated that the location
tracking information is not traceable to individual users. Google went on to defend its action in
stating that Google does ask Android device owners if they want to turn off the location-tracking
feature. According to Alan Davidson, Googles Director for Public Policy for the Americas, "If
they opt in, all data is made anonymous."
QUESTIONS
1. Location-based tracking is common to all smartphones, for good reason or bad. The popular
location-based service company Foursquare has an app so you can check in at various locations
to receive discounts, become Mayor, and see who else might be there. DeadLeak which
aggregates from the likes of Groupon and Living Social, needs your location in order to offer
local discounts on products and services to you. How many location-based service apps do you
have on you smartphone? How often do you use them and why?
2. Apple and Google defended their processes by stating that their privacy policies very clearly
stated what information would be gathered, how that information would be used, and how and
with whom that information might be shared. When was the last time you read the privacy policy
of any technology tool, such as a Web browser or app? Do you think very many people actually
read these? Do the disclaimers in these privacy policies give the offering organization the right to
do anything with your information?
3. What about location-based tracking in car systems like GMs OnStar? Those systems know the
cars location to give you directions and perhaps identify local restaurants or other venues? Are
you comfortable with this? When was the last time you bought a paper map? How much do you
rely on your cars GPS system?
4. What about smartphone tracking for parents who want to know where their children are and
where theyve been? Minors under the age of 18 have very few privacy rights, especially when it

comes to parents knowledge of where they are. Are parents going too far in wanting to know
where their children are? What are the benefits of such systems for parents? For the children?
What does the term "helicopter parent" refer to?
OPEN