Logistic and supply chain managers in the current age have to deal with uncertainty, risk and volatility; they have to keep on preparing for the unexpected. The need for quality and effectiveness means that supply chain has become highly vulnerable to any simple interruptions. Uncertainty is a serious element that will affect the ability of the supply chain to meet the demand of the customers (Waters, 2007).
This is the reason why close attention has to be paid to the supply chain management in terms of the standards, methodologies, and strategies. Risk mitigation has turned out to be a hot topic in supply chain management. Several firms are currently looking for the best ways through which they can manage to measure risk in supply chain and
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It is important that different firms are unique when it comes to the risks in the supply chain, and there are those, which will be affected differently by similar risks in the supply chain (Hugos, 2003). The most important thing in risk analysis in the supply chain is, therefore, the aspect of risk identification.
The Toyota Case
There was a brake pedal disaster in Toyota back in 2010, which did indicate a huge failure in terms of a product designed. The company did lose close to $2 billion in revenue, and this was without the inclusion of the future cost, which was related to lost customer confidence (Waters, 2007). This was an issue of quality, which occurred in Toyota, and the supply lead-time would have indicated the time needed to solve the problem. The problem in a company like Toyota is that it is huge with a huge supply chain, which does complicate the problem for the business (Mentzer,
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The revenues of the business rely on the supply chain that delivers the products, and incase a key component of the process does not function as per the expectations; it becomes very difficult on the part of the business (Trunick, 2010). Most executives are faced with the difficult situation where they have to cut costs and at the same time meet the customer demands. This is a justification why it is important to have a risk analysis of the supply chain in order to avoid situations where the business operations are affected by events that are related to business or environmental
Consequently, the Home Depot has weaknesses in its Product Life Cycle for their HDX line of products when it comes to the introduction and growth
Sometime that is not the case. Sometime management has to step back and reevaluate how the company is being handled at that point in time. Management had to ask some important questions like; where was the weakness? How can they boost customer satisfaction? Home Depot answered their question by revamping their human resource department.
Employees’ output is subpar and does not conform to the expected or stipulated levels. This has adverse effects on downstream automakers because they must contend with delays in the supply of side mirrors. It also results in missed deadlines, which erodes customers’ confidence in the organization. Sluggishness among employees also results in a general rise in overheads (Beer & Collins, 2008). For example, the organization must airlift completed parts to customers to shorten delivery times in the face of production delays.
As stated in the case “because foreign sourcing does not support just-in-time deliveries, Bose “had to find a way to blend low inventory with buying from distant sources”, Suppliers should be able blend into technological innovation of Bose and be able to respond to Bose ’s needs in a timely manner to bring new products to market as quickly as possible. If not, it could have a devastating effect on sourcing of materials, inventory management and customer service which are core competencies of Bose. Question 2. What should be the relationship between Bose’s supply management strategy and the development of its performance measurement
The risk management process establishes the methodology for risk enterprises framework for the of many businesses (Fraser & Simkins, 2010). A retail business such as Target needs to do a risk assessment to establish the types of risks being faced by the organization. The risk assessment process starts with the identification and categorization of risk factors. High customer interaction of the retail businesses like Target, need to identify risk as a continuous basis effort over the lifetime of the business (Mandru, 2016). It important that the business leaders, set goals and priorities for the risk management system.
The Value Chain 4 4. Operations Strategy Implications (Store level) 5 5. Inventory Management and Demand Forecasting 9 6. Supply Chain Management 9 7. Quality Management 11 8.
Q. 2. Recent development in Technology has enabled huge global organizations to avail information easily in their premises for smooth functioning of various departments within an organization. Much of a company's success comes down to its Supply Chain Management and logistics. The development of Information Systems in SCM helps in cost reductions, customer satisfaction and productivity.
As a result of the events of Dremliner, Boeing has improved their supply chain management process by incorporating continuous improvement strategies and implementing ways to encourage open lines of communication amongst their supply base. Boeing 's supply chain management places emphasis on on-time deliveries and streamlining common standard processes across their suppliers. Boeing has developed several tool to not only monitor and audit the best practices and overall performance of the supplier, but aid in collaborative communication amongst their entire supply base.
In the past, we have seen many examples of family business dynasties surviving and flourishing for more than 100 years like the Rothschilds, the Fords and Merck family in Germany. But we have also experienced big failures in continuing some family business. David Bain in his essay (10 Sept. 2015) listed five examples.
5 – Main risks going forward for Amazon.com are to loose its competitive advantage because of opportunities that Internet offered to its competitor : low prices, deliver, costumer’s service, etc. Moreover, if the business develops, it may encounter logistical problems and limits : geographical and logistical constraints (energy, delivery and connection and some contries) and legislative constraints (censorship, taxes and state agreement : Corea, Sri Lanka, Indonesia, etc). Founded in 1994, Amazon started as an online bookstore and quickly became popular as it received high marks on several Internet rankings. Today, Amazon.com, Inc. is the world's largest online retailing company headquartered in Seattle, WA
The best companies in the world are discovering a powerful new source of competitive advantage. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers. The Supply Chain Management program covers topics from manufacturing operations, transportation, purchasing and physical distribution for a single program. Coordinated the successful management of the supply chain and all these activities integrated in a continuous process.
They state quite obvious and short explanations or certain risks that any company in any industry could use. For example, one risk was, “Supply chain interruptions may increase costs or
Supply Chain Management (SCM) department encounters a number of different stakeholders. Many different working relationships take place within each individual work on, from colleagues to clients, stakeholders, and suppliers. The internal supply chain that delivers the service is complicated and requires the co-ordination and co-operation of individuals and teams who have different skills and priorities. Hence, understanding stakeholder needs and working effectively with them is critical to the success of the procurement team. Cleland (1995: 151) recognised the need to develop an organisational structure of stakeholders through understanding each stakeholder’s interests, and negotiating both individually and collectively to define the best way
Brief summary British Columbia box limited Vancouver factory was headed by the plant manager Mr.PaulFlynn. BCB also had sister plants in Burnaby, Vitoria and Toronto .BCB was a part of large international company which specialized in manufacturing of packaging materials . Paul was looking for new machinery in early 2002 as the current machine was 18 years old and it demanded huge investments in terms of maintenance. He also wanted to expand his business and hence was looking for a machine with higher productivity.
Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.