Mr. Blanchard’s case study discusses US. economic productivity and quality of life. According to Blanchard, “The better informed managers are about the supply chain of products, the more they can coordinate the supply of products, the more goods can be made and distributed, and the higher the quality of life of their customers and suppliers.”
According to the case study, “The supply chain of products includes production of raw materials, processing, packaging, marketing, distribution, retailing, warehousing, and last but not least, human labor.” Since this “supply chain of products” includes many phases of production and distribution, every stage has an impact on the quality of life of the customer. So, the study points out that the quality of life of the customer depends on the quality of life of the company.
The study shows that the quality of life of the company and employee quality and happiness are connected. “Employee quality of life” is measured through working conditions, training, compensation, health care, promotions, turnover and other aspects. “Company quality of life” is measured by profit margin, revenue, market share, and output. Blanchard explains, “Quality of life is also dependent on the factors such as capital intensity, efficiency, risk, market share, price, innovation, product features, and other factors.”
In business management, product supply chain is an essential part of analysis. Because of the close links between quality of life and supply chain, business managers need to incorporate supply chain into their studies. If company supply chain is analyzed, it can help managers in strategic planning, forecasting, and value creation.
The study seeks to improve the overall productivity of an organization. Productivity means that the more productive workers are, the higher the output of goods or services, the greater the benefit to the company.
In addition, economic productivity can be considered as a way to produce quality of life. Productivity refers to the rate at which people are producing goods or services. Studies show that when employees are productive, company productivity rises.
According to Blanchard, “Demand for customers may increase productivity by strengthening productivity and creativity. These results can be used to make informed decisions about investing in an industry’s management and innovation efforts.” Therefore, businesses benefit from increased demand for quality of life through the improvement of productivity.
He further explains, “Demand for products and services is not new to economic and management science. Indeed, there is a growing body of literature on the relationships between demand and the quality of life.”
Consumers are part of economy, as well. If demand is increased, quality of life will be improved. In fact, once demand increases, quality of life will be improved.
Harvard University has conducted original research on supply chains. The study on Supply Chains for Economic Value Analysis of a Product is based on HCL’s “Survey of International Industry Survey” which is conducted annually. This survey was developed by the International Labor Organization in 1989, HCL is a supplier of engineering and office furniture.
Harvard’s side of the case study is supported by some major corporate customers like Procter & Gamble, AT&T, John Deere, Dell, Goldman Sachs, Microsoft, and Samsung. Other support involves Alcoa, General Electric, Rolls Royce, Nautilus, and J.D. Williams.