Company Supply Chain Analysis Report for Nab

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Company Supply Chain Analysis Report for NAB

Executive Summary

The intent of this report is to analyse the practice of supply chain management in National Australia Bank (NAB). The sources of information for this report are from academic readings, internet news and NAB websites. Logical thinking and supply chain process mapping are the tools used to analyse NAB supply chain management practices. The raw material and products chosen to analyse is money. The analysis concluded NAB money product supply chain is a special one with both upstream and downstream considered ‘personal and business banking customers’, and therefore both are treated as customers. NAB home loan product is chosen as an example to illustrate the
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2 Supply Chain Management Importance

Generally in most organisations the primary goal is to satisfy its customers while maintaining a profit in doing so. The theory behind supply chain management is for companies to take a holistic view of business strategy, by aligning goals, sharing resources and collaborating across company boundaries (Fawcett, Ellram & Ogden 2007, p6).

1 Losing Customer = Losing Fund Provider

The supply chain of NAB can be viewed as a special case, as can be seen in Figure 2.1, with both the upstream and downstream members considered ‘personal and business banking customers’, and therefore both are treated as customers. This unusual case means that customer satisfaction and loyalty are of the upmost importance for NAB, otherwise by losing a customer they risk losing a supplier and a user of funds who could bring in revenue. An example would be a 10,000 employees business corporation who uses NAB as their main transactional bank. The corporation would normally set up its employees with NAB personal account for depositing pays. That would be 10,000 NAB personal accounts and 1 NAB business account. If the firm not happy with NAB and changed over to let says ANZ, many of the personal accounts would also switch over to ANZ. Revenue losses from this event could be large. By contrast, in a manufacturing industry, if one loses a supplier it does not automatically mean it loses its customer also.

2 Substantial Profit from

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