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Case Study : Supply Chain Management

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DIRECTV’S SUPPLY CHAIN

Justin Lockett
Florida Institute of Technology
4/20/2015

Introduction
Supply chain management has become one of the core business practices for any organization in this contemporary business environment. The significance of effective supply chain management has increased over a period of time for cable and satellite service providers with objectives such as saving costs, reducing the manual efforts created by process changes, streamlining the information availability, and increasing the supply chain velocity time. Since the digital television market is becoming more heavily saturated, the need for organizations to develop new business model that enhance the agility of the supply chain has significantly
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In 2004, Howard Hughes, the founder of the organization, has announced his intent to focus majorly on the satellite television service provision and rolled it out as a separate entity that provide satellite services to the household customers. DIRECTV has employed approximately 27,000 employees with net income of $2,859 million in 2013 (DIRECTV, 2013).
Supply Chain Management
Supply Chain Management is a process of streamlining the supply-side activities in order to order to take control over production, shipment and distribution (Cooper et al, 1997). An impeccable supply chain management process should enhance the quality of the production environment and help the organization to gain the competitive advantage. The supply chain management, in a nut shell, looks after the flow of goods within the organization. The flow normally refers to the movement of raw materials from storage area to work-in-progress area to inventory of the finished goods to distribution to the inter-linked networks that reach the end customers. The effective supply chain management would help the organization to reduce the ownership of the raw materials and distribution channels and to enhance the trust and collaboration with the supply chain partners. The globalization, information technology and outsourcing practices have been helping the organizations to successfully operate supply chain networks with the help of the technology
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