A Case Study: Many firms in the present are striving to achieve the best value supply chain. However, Raytheon Technical Services Company, LLC is one of those firms moving fast towards best value supply chains. They are providing best value to their customers by following the three A's (Agility, Adaptability and Alignment) and the four key components of the best value supply chains. Raytheon is one of the industries from which US Military outsources supporting functions.
Raytheon is achieving agility by co-locating near the military offices. Raytheon provides support for live-combat simulations. Thus, it operates management facility very close to the military offices that run the simulation.
When cell phones and other detonators were used as explosives in Iraq, Raytheon had to adapt quickly to this new change. They created a rapid response supply chain by deploying the best resources available with them.
Raytheon uses financial incentives to create alignment amongst its members. There are also monetary penalties associated for wrong doings. But to maintain positive energy and cross collaboration, the incentives are much higher than penalties.
To comply with the strategic sourcing, the company uses the strength of big and small firms with the type of material needed. They use mobile repair vehicles to service equipments sticking to the best practices of logistic management. Raytheon has also attempted to make its supply chain better by developing an information system combining the latest developments in the data and the system concepts. They have built a federation of small business to maintain relations with its small business partners. The federation provides the innovative small firms with infrastructure and resources to bring them together to solve complex problems.
Looking at the future forward, we can say the competition is not going be product-product or firm-firm, but it will supply chain - better supply chains. And this is the point where the firms need to question themselves - How much are they ready to adapt to this change? What are the things they could do better in order to move towards the notions of Best Value Supply Chains?