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SCENARIO # 1: RESPONDING TO BUSINESS CHALLENGES STORY: Ashley Furniture Owns Its Supply Chain As the largest U.S. furniture maker, Ashley Furniture has good reason

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SCENARIO \# 1: RESPONDING TO BUSINESS CHALLENGES STORY: Ashley Furniture Owns Its Supply Chain As the largest U.S. furniture maker, Ashley Furniture has good reason to ensure it has the most effective supply chain possible. Due to its size, Ashley has found it advantageous to own and operate much of its own supply chain instead of relying on external companies. For instance, Ashley operates its own fleet of delivery trucks that help the company fulfill on-time deliveries and reduce overall costs. Its trucks and warehouses utilize specially designed tilt-racks that speed up loading and unloading of furniture. Ashley also utilizes newer trucks that offer more amenities for drivers, such as a more luxurious cabin and space for a bed. Furthermore, the deep integration of Ashley's supply chain and logistics network means drivers have more predictable work schedules, freeing up time for them to spend with family. This all leads to satisfied drivers who double as ambassadors for the Ashley brand, a benefit not possible with a third-party delivery company. La-Z-Boy, the second largest U.S. furniture maker, has taken notice of Ashley's success. It is growing its own truck fleet on the premise that it increases delivery reliability. While both of these companies are large enough to benefit from company-owned truck fleets and deeply integrated logistics and supply chain networks, smaller competitors will likely continue outsourcing parts of their supply chains. At lower volumes, outsourcing offers reduced costs and improved efficiency. 24 (Links to an external site.) Discussion Questions 1. What are some of the advantages Ashley realizes from owning its own fleet of delivery trucks? 2. How does Ashley foster high satisfaction rates among its delivery drivers? Why is this important? 3. Should all companies strive to own their own supply chains? When is outsourcing parts of the supply chain appropriate

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