Whether a firm produces goods and services or outsources them, it is essential to have knowledge of the ins and outs of logistics and manufacturing. These processes play a critical role when it comes to the supply chain and hence, directly affect an organization’s success. When they are done appropriately, they aid in creating a smooth flow of raw materials, thus ensuring that final commodities meet their claims. As a result, the inbound logistics process is among the critical factors as it entails the management and delivery of all inputs that contribute to a firm’s products (Dudovskiy, 2019). However, it is a process that refers to the influx of raw materials from suppliers to manufacturers (warehouse).
Microsoft contracts with several suppliers from all over the world. It has the responsibility of maintaining highly complicated supply-chain operations with no interruptions. As a result, all suppliers must stick to “Microsoft Supplier Code and Microsoft Supplier Requirement” (Hanne & Dornberger, 2017) .The primary worth source for Microsoft’s inbound logistics entails economies of scale, the existence of strategic relations with suppliers and also, being adequately knowledgeable on supply-chain management activities. Therefore, to maintain its inbound logistics efficacy, Microsoft has a quality check which aid in performing swift quality counter-checks, thus, ensuring a product is of value (Hanne & Dornberger, 2017). Also, it has put away clusters that aid in picking multiple licenses at a go for put away at distinct locations. Thus, this promotes organizational success.
Delegate your assignment to our experts and they will do the rest.
On the other hand, there is the outbound logistics. It entails the flow of finished commodities from a firm to consumers. They are mostly related to distributing channels and also consumer services. Microsoft is made up of several inbound activities. Firstly, there is a small package shipping. This plays a vital in adding functionality for setting up carrier login credentials, among other roles. Also, there is the system-directed work sequencing. It provides the capability to sort and filter the work orders that the system will present to users for execution (Microsoft, 2020). Additionally, there is the wave load building and also warehouse slotting. In this case, warehouse slotting allows the company to come up with replenishment work based on orders’ demand.
Both inbound and outbound logistics are critical to Microsoft’s success. In this case, effective inbound logistic activities can lead to high-quality products, such as quality checks. As a result, once a firm is in control of inbound logistics, outbound logistics can easily be managed; thus, resulting in success. Below is Microsoft’s supply chain simplified network diagram that aids in its success.
Manufacturers
Consumers
Resellers
Retailers
Logistics
Suppliers
Geographic Locations
Consumers – they are located worldwide, for instance, China, Japan, the UK, and many other regions.
Manufacturers – the primary manufactures are located in Redmond, Washington, in the US.
Suppliers – Microsoft suppliers are located all over the world, thus have no sole geographic location.
Logistics – Logistics are undertaken from Redmond, Washington, in the US. However, afterward, they are redistributed to all other parts of the world to its consumers.
Resellers – one of the geographic locations for resellers is Tenn, in La Vergne, outside of Nashville. The resale distribution group centered in this place is the Ingram Content.
Retailers – Retail stores are located throughout the US, seven in Canada, one in Sydney, one in London, and Finland.
References
Hanne, T., & Dornberger, R. (2017). Computational intelligence in logistics and supply chain management . Springer Verlag.
Dudovskiy, J. (2019, February 6). Microsoft Value Chain Analysis . Retrieved from Research Methodology: https://research-methodology.net/microsoft-value-chain-analysis-2-2/
Microsoft. (2020, June 25). Inbound and outbound logistics improvements . Retrieved from Microsoft: https://docs.microsoft.com/en-us/dynamics365-release-plan/2020wave1/dynamics365-supply-chain-management/inbound-outbound-logistics-improvements
