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Gop build strong triple supply chain to compete in their market. Gap, too, uses a three-pronged strategy. It aims the Old Navy brand at

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Gop build strong triple supply chain to compete in their market. Gap, too, uses a three-pronged strategy. It aims the Old Navy brand at cost-conscious consumers, the Gap line at trendy buyers, and the Banana Republic collection at consumers who want clothing of higher quality. Rather than using the same supply chain for all three brands, Gap set up Old Navy's manufacturing and sourcing in China to ensure cost efficiency, Gap's chain in Central America to guarantee speed and flexibility, and Banana Republic's supply network in Italy to maintain quality. The company consequently incurs higher overheads, lower scale economies in purchasing and manufacturing and larger transportation costs than it would if it used just one supply chain. However, since its brands cater to different consumer segments, Gop unes different kinds of supply networks to maintain distinctive positions. The adaptation has worked. Many consumers don't realize that Gap owns all three brands, and the three chains serve as backups in case of emergency. Great companies create supply chains that respond to abrupt changes in markets. Agility is critical because in most industries, both demand and supply fluctuate rapidly and widely. Supply chains typically cope by playing speed against costs, but agile ones respond both quickly and cost- efficiently Great companies also adapt their supply networks when markets or strategies charge. The best supply chains allow managers to identify structural shifts early by recording the latest data, filtering out noise, and tracking key patterns. Read the case study above carefully then answer the below questions (while you are answering you need to refer to course materials text book (Business Driven Technology-Boltzen). a) What is a supply chain management and what role does it play in an organization? (20 MARKS) b) Why do managers need to understand supply chain? Can you make a correlation between supply chain management and business processes? (25 MARKS) clcritically show how gap build strong triple supply chain to compete in their market (15 MARKS)

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