The General Dynamics company is centered on implementing e-tools into the supply chain to ensure a more cost and time-efficient transition. The supply chain management council is devoted to promoting innovation networks to establish high-quality rapid communication with business partners and customers (Supply Chain Excellence, n.d.). One of the major principles of General Dynamics’s supply chain management is supplier diversity. The company works with small businesses, which contributes to minimizing the market risks and increases the level of competitiveness. Therefore, efficient collaboration through e-commerce, the suppliers’ diversity program, and the implementation of the new technologies are the basic elements of General Dynamics company’s supply chain management.
General Dynamics’s approach is undoubtfully successful within the scope of global market. However, the total replicating of the company’s system is irrational considering constant changing market conditions. The experience of General Dynamics can be used in building a more resilient supply chain system. The resilience of the supply chain is the ability of the company to stay active even during unexpected market changes. General Dynamics’ experience shows that the significant number of suppliers ensures the stability of the company. Such an approach may be relevant practically for any company. The distribution of resources and inventory is used for two purposes: to secure supply from unexpected disruptions and increase the customers’ reach.
Another strategy that can be relevant for establishing the resilience of practically any supply chain is the involvement of E-commerce. The introduction of mobile communication with data collection terminals can reduce the time for processing orders and prevent errors in personnel. Current market conditions require speed and accuracy from the E-commerce business both at the stage of receiving products and when picking and shipping orders to customers.
The integration of new technologies is also a vital experience that any company should implement. However, while the experienced company General Dynamics advances the automatization of the deliveries, less stable companies can start with the usage of other technologies. For example, the enchanting of the security of data within the supply chain can be done by using supply chain management software. The next-generation technologies such as blockchains and the Internet of Things can be an efficient and cost-effective investment idea.
On the contrary, some aspects of General Dynamics’s supply management should be improved and adjusted for the other companies’ needs. Smaller companies may need more support to prevent the negative consequences of different issues. In order to do so, they can leverage the number is carriers. Such a strategy ensures a more resilient supply chain by preventing various disruptions on the delivery level. However, such a distribution is problematic from the management and sometimes even a financial perspective. The company should use this approach only after a detailed analysis of the budget and possible risks. General Dynamics is a well-developed huge company having multiple customers. As a result, its managers are ready to deal with the shortages in products (Supply Chain Excellence, n.d.). However, smaller and less experienced companies are at a higher risk of losing customers due to shortages. The safety stock buffers can improve the company’s resilience, minimizing the risks of unanticipated demand.
Therefore, the creation of a secure, resilient and next-generation supply chain system is possible though connecting the experience of huge companies such as General Dynamics and the particular companies’ resources. The system’s resilience is one of the significant success factors for the company. Comparing and contrasting the experiences of the other companies, creating resilient supply chain system management becomes possible. Important resilient and secure supply management factors are innovations, risk management, suppliers’ distribution, and careful risk management.
Reference
Supply Chain Excellence (n.d.). General Dynamics.