Case Study: Supply Chain Strategy

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6. Supply chain Strategy
The supply chain is a sequence of global networks that includes processes of materials movement to production point and moving product away from production point to the customers. This means supply chain is used to deliver products and services from raw materials extraction to end customers through an engineered flow of information, physical distribution, and cash flows. There are three entities that connect the supply chain altogether. First, suppliers that provide goods and services like machinery and raw materials. Second, production point which is the manufacturing stage such as designing and customizing products. Then, intermediaries that support the movement of produced goods like the warehouses, distributors,
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The best way to lower the costs of value creation is by producing the steel where it has originally been taken since steel considered as a mineral resource in the UAE. By this, Emirates Steel will ensure the efficiency and the quality of the product as it is easier and cheaper in reducing the amount of inventory. (Shihab)

2) How can production and logistics add value by better serving customer needs?
In this case, Emirates Steel needs to increase the productivity as well as the efficiency of manufacturing by increasing the product quality and eliminating defective products from both the supply chain and the manufacturing processes. For example, lowering the undesired irregularity in a metal forming processes as it could lead to harmful consequences that will end with the company’s liability leading to poor company reputation and may not be the best to serve customers needs.

Production Location

To precise more on the production point so that production and logistics to be quickly responsive to changes in customer’s demand and supply. Emirates Steel will be producing in the UAE for various
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Because if the fixed costs set up are high then fewer production areas whereas if fixed cost is low, then firms can afford more production areas. Then, to achieve efficiency, a company should use minimum resources to create maximum outputs. For example, the fewer the factories location, the better for the company to produce at low cost with high quality and trained labor. In addition, the more flexible technology is, the better to produce different goods at the same assembly line. Furthermore, in Emirates Steel they use the latest hot rolling machines that can produce more than one item in mass

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