Service and Digital Supply Chains, Assessment Example

The drivers of a digital supply chain include the use of digital technology, which means businesses have had to reinvent their supply chain strategies, due to the emergence of the digital age (Baltacioglu, 2007). This is something that has disrupted the processes of traditional supply chains, as companies have implemented digital supply networks to adapt digital technology to their business operations (Accenture, 2015). An example of a successful digital supply chain is Netflix. According to the Netflix tech blog, to deliver a movie stream to customers’ digital devices (e.g., PCs, television, mobile device) entails the customer completing an order on the site, then the digital materials flow to retailers’ systems, and then out to the customers (Netflix, 2012).

Digital supply chains are certainly more efficient and effective than traditional supply chains in many ways. For example, Netflix offers both digital service and mail order to their customers. With digital, the customers can automatically stream the entertainment without having to worry about waiting for DVDs in the mail or having to mail them back after use. This is offers a level of added-value to the customer of convenience, and it is more cost effective and saves time for the company and the customer. The principle of supply chain management that is more relevant to digital supply chains is strategically managing supply sources to reduce the cost of owning materials and services (Anderson, Britt, & Favre, n.d.). This is evidenced in Netflix’s successful business model of delivering movies to customers through digital streaming to their PCs, televisions and other digital devices such as tablets and other mobile devices.

References

Accenture. (2015). Digital Supply Network—The New Standard for Modern Supply Chain Management. Retrieved from Accenture: http://www.accenture.com/us-en/Pages/insight-digital-supply-network-modern-supply-chain-management.aspx

Anderson, D. L., Britt, F. F., & Favre, D. J. (n.d.). The 7 Principles of Supply Chain Management. Retrieved from Supply Chain Management Review: http://www.scmr.com/images/01.SevenPrinciples_.pdf

Baltacioglu, T. (2007, March). A New Framework for Service Supply Chains. Service Industries Journal, 27(2), 105-124.

Netflix. (2012, December 17). Complexity In The Digital Supply Chain. Retrieved from The Netflix Tech Blog: http://techblog.netflix.com/2012/12/complexity-in-digital-supply-chain.html?m=1