Supply Chain Management

Supply Chain

Supply change management is the control of resources, information, and capital. How an organization synchronizes and incorporates flow within and amongst other companies can be effective. In this text I will be discussing the supply change management systems in place at Intel Corporation.

Intel Corporation continues to make great effort to improve their supply chain networks to make them more reactive to meet a certain standard level of standards. Intel Corporation utilizes the Supply-Chain Operations Reference (SCOR) a cross industry supply chain reference model that examines and develops supply chain operations. Intel has made the use of the SCOR method in many different supply chain projects with many different Intel business groups. Enabled by business-process modeling tools, SCOR was used as a framework to model the business processes within the scope of Intel's supply chain (intel.com). Intel uses this method of supply chain to construct project proposals and develop (BKM's) or best know methods for supply chain development. As Intel refers to the SCOR model they require cross functional teams to take part in a series of (FTF) or face to face meetings to accomplish objectives set according to the SCOR model.

The supply chain method at Intel Corporation relates to information and financial flow as well as physical flow. The information and financial flow refers to the quantity, time, and money its takes to manufacture certain products. Once the information and financial flow is determined the physical flow can take place which is the actual manufacture of computer chips. In today's manufacturing, most of the companies are outsourcing. This majestically increases the physical flow occurring between manufacturers. Physical flow usually represents over half of the whole flow of an organization. How an organization controls physical flow is important because it can be a huge impact to adding significance to the company.

Supply Chain Management consists in organizing and optimizing physical flow by managing the supply chain. In reality, it's more difficult in Intel's case when dealing with a multiple numbers of companies. The more companies you deal with the greater chance of number of flows that can be presented between companies. For example, you have two computer companies Dell and Hewlett Packard which both sell personal computers. These companies buy all necessary components of a computer including monitors, keyboards, motherboards etc. in order for them to produce the computers before selling them. Here is a chart representing to the scenario above.

Dell and Hewlett Packard both have the vital goal which is to sell computers to gain capital. Intel, motherboard supplier 1&2 share the same intentions as Dell and Hewlett Packard they only supply part instead of computers.

Due to globalization the supply chain for large organizations normally extends all over the globe. Intel has many different factories, supply centers, and retail centers all over the world. To create a fully enabled, internationally accepted global supply chain infrastructure will require ongoing cooperation and collaboration among standards

organizations, manufacturers, government bodies, retail firms, shipping organizations, and other supply chain participants no trivial effort (intel.com). It is in the best interest of Intel to work along with industry leaders. By doing this they can manufacture products according to the standards of a particular organization.

Intel works actively with industry leaders and standards organizations to construct an open standards framework for the infrastructure and to build components that enable these technologies to deliver benefits at every point in the chain (intel.com). Intel helps out there portfolio companies to make room for larger investment chances while establishing a more active relationship with these companies. The success of these investments not only causes more impact, but is beneficial to both the portfolio companies and Intel Capital. Intel Capital which is Intel's venture capital organization makes investments in new technology worldwide. Recognizing the importance of technology centers