chrisbenjamin supply chain

Contents Executive summary 3 Introduction 3 Building supply chain 4 Supplier selection process: 4 Upstream and downstream issues 5 Upstream issues 5 Downstream issues 6 Considerations of supply chain elements 9 Supply chain process 10 Distribution strategy 10 Supply chain planning 10 Associated risks 11 External supply chain risk 11 Internal supply chain risk 12 Supply chain risk management 12 Recommendations 13 References 15

Building supply chain on new business

The paper discusses about the major implications of supply chain management. There are two major parts of supply chain process supplier and distributor. The business organization is based in the development of office furniture store that picks finished goods from reputable furniture supplier. Then we have to receive customer orders and delivers in effective well managed lead time. The upstream issues include lack of inventory management, long lead times deliveries at furniture store, lack of supply chain integration, lack of skilled labor force to manage inventory and warehouse management issues effect the overall performance in building supply chain. Demand management, communication, integration and collaboration are most important elements in conducting and building supply chain model. Certain risks are developed that effect the business operations of business. Supply chain risk management is the best solution to overcome the issues in well manner. In last creation recommendations are given that should be implemented in the supply chain business to attain high supply chain performance.

Building supply chain based on the upstream as well as downstream operations of company. The upstream operations include suppliers to manufacturers and downstream operations include distribution and wholesales operations. Building supply chain is critical task in such competitive environment. Therefore, production and distribution of goods and services are the major purpose of supply chain. Supply chain optimization with continuity in the business planning to leads efficiency in the business process management. Supply chain process contains on plan, source, and repair and then deliver to end user is the main process elements in supply chain.

Building supply chain is complex to attain high corporate values. The new business is opening an office furniture store where important aspects of supply chain have been discussed with certain issues in upstream and downstream channels. We purchase finished goods from reputational suppliers with high quality material and then forwarded to end user. In this process buying from suppliers and deliver to customer is main idea generated from building a supply chain.

First of all, suppliers are evaluated where the finished goods had to be purchased. In this regard supplier selection process recognized to authenticates reliability of high quality furniture products. There are three categorical steps recognized of supplier selection process that contains on prequalification, qualification and then relationship management. Each has importance specific with supply chain relationships.

In prequalification of stages identify potential suppliers and then short listing of suppliers with specific criteria. The criterion of office furniture includes high quality products, innovative design, responsive towards demand forecasting and good reputation in market landscape. In qualification stage analyzing suppliers, rate suppliers and select the final suppliers for selection of office furniture. In last relationship management, establishing relationship with suppliers is to make contract with manufacturing of office furniture and integrate development of supplier management. In the initial stage of business we have to face certain challenges in managing supply chain process management. These challenges specifically related to the suppliers as well as distribution to end user.

Figure 1: Integrated supply chain operations

There are certain main challenges we have to face in upstream allocation of suppliers. These issues are lack of inventory management, long lead times deliveries at furniture store, lack of supply chain integration, lack of skilled labor force to manage inventory and warehouse management issues effect the overall performance in building supply chain. The other issues related to product design availability with marketing trends, procurement in quality management of supplying material of wood and supply chain initial cost creates challenges in starting the venture.

Building supply chain model of office furniture store face issues in upstream because it is initial stage of venture. The main purpose of such development is to integrate the supply chain operations and investigates best optimization of supply chain relationship. Strategic supply chain management as well as supply chain management techniques utilized in the current structure of office furniture to attain high operational values of supply chain.

The success of retail industry depends on high efficiency in the distribution process, to fulfill the needs and demands of their customers. If a firm or company wants to gain the competitive advantage, then it must focus to its distribution process because it affects on both the customers experience and supply chain cost. Moreover, the outbound distribution considered costly and it can be up to the 20 % of the manufacturing cost. To reduce the cost of distribution many retailers depends on the optimized routine and scheduling as well as on the order consolidation. These mathematical programming and operation research techniques are technically demanding and very complex and beyond the grab of a large numbers of distribution practitioners. For optimization, the use of the good software or the requirements and use of complex and large amount of data work as an input. This also shows the reputation of the methods. The responsiveness and efficiency can enhance the proper use of the information technology. The prohibitive of the medium and small size firm may prove by the intense initial capital investment and the other requirements of resource.

For the expected benefits, this process will take time for harvest and set up. Therefore, there is need to considered the less costly means. The aim of this research is to find out the utilize of the demand managing techniques in customize services for the different type of customers by improving the efficiency of overall distribution network. The focal point will on the downstream distribution, in this the outbound distribution is more costly and complex due to presence of large number of the customers segment and a wide variety of product and each has its own requirements and characteristics. The choice between the responsiveness and efficiency will start when there will be proper understanding of the requirements and characteristics about the different segment of market. Beside the limitations in the supply chain, a firm can use the demand management techniques for example, pricing scheme, market segmentation, and vendor managed inventory (VMI).

It can capable to attain the high efficiency in the distribution network by consolidation and centralization and remaining the responsive to their customer needs. It is not only important for the combination of suite of the supply solutions to the different customers. Nevertheless, it also increases the marketing strength and supply capabilities of a company. For the associated adjustment in the business strategy to drive changes the organizational culture and leadership are very necessary.

The current operation and the characteristics of the case organization investigated for understanding the business strategy, competitive environment and the requirements of customers. The classification and data mining techniques are used to explore the data related to sale, which is provided by the company to fine out the customers’ segment, and demand patterns. To evaluate current distribution (distribution model) the utilization of the delivery vehicles and spatial distribution of the customers were analyzed. The suitable demand management steps or measures along with the leadership style, business strategy and the culture of the organization are necessary for the implementation.

Due to no formal interaction or collaboration between supplier and retailer, the retail industry experiences many problems that are related to the supply chain. In the supply chain, the demand uncertainty is called bullwhip. It creates inefficiencies and excess inventory in the supply chain.

When the order and demand forecasts jointly by partners it creates distractions. The need for integration of supply chain is created by these factors, which provides the replenishing processes and forecasting of supporting collaborative. The aim is to increase the sales and reducing the cycle time and investment of inventory. The waste in the supply chain can be reduced by the collaboration on the other hand; it will increase the market responsiveness, competitiveness and customers’ satisfaction.

To increase the advantage of supply chain Radio Frequency Identification (RFID) may play an important role. For the implementation and collaboration of the supply chain along with the RFID, it can enable the retailers to gain best level of the business performance. Retailers can expect the labor-cost saving and extensive inventory. In reformation the supply chain management RFID offer the most potential, on the other hand, it can limit the RFID benefits it the data is hold and handle by the RFID. The SAS solution, which built on the solid framework of the analytical technology and data management, can scale the data of any size and even those that have extensive amount of data.

There are four main elements that must be considers in the building of supply chain. Demand management, communication, integration and collaboration are most important elements in conducting and building supply chain model. We have deals in office Furniture Company, and we need to consider supply chain elements. In demand management, forecast planning has been executed of office furniture demand and construction of new office to cater the target market in effective way. The need of customers identifies that optimize product quality, value added services and increase collaboration in aching desired aim of the new business.

Supply chain is the process of planning, implementation and effective controlling towards effective flow of goods. For office furniture supplies for identify supplier whose reputation in the market is excellent. In this regard we have to confirm the customer requirements. We have to consider certain major elements and objectives for building supply chain model of office Furniture Company.

Meeting standards of customer service, reduction in cycle time, reduction in distribution cost, inbound logistics, outbound logistics and effective coordination and collaboration has taken place to initiate best supply chain practices. Our main goal in building supply chain includes customer, managing customer uncertainty, responding globalization and reduction in overall costing of supply chain management.

There are four parts included in the supply chain process of office furniture that contains on procurement, production, distribution and customer interface. In procurement we have to follow procure to payment process to direct the activities in well manner. In production of office furniture bottleneck optimization and production strategy taken place to recognized optimized supply chain process. Our main focus is distribution of office furniture with accuracy of lead time efficacy with shortens cycle time. (Ross, 2010)

Distribution strategy as well as transportation system has been maintained with the third party logistical services. Material handling and packaging of furniture is critical part, so we development warehouse management to take effective building of supply chain management process. In last customer interface is that contains on the customer segmentation, customer management and order fulfillment entry used to towards effective optimization of supply chain process.(Ayers, 2006)

Forecasting and sales operational planning integrated with the suppliers for the best practices of supply chain management. Supply chain organizations and supply china performance determines the effectiveness of managing supply and demand in the market landscape. Procurement and material requirements planning initiated in the furniture store to manage overall inventory system of company. (Hugos, 2010)

There are two main types of risk that are specifically associated with the supply chain based on the internal and external supply chain risk that influence the business operations badly.

In external supply chain management that includes demand uncertainty in the marketplace. Such situation like demand of office furniture might increase that causes the routine operations of office furniture production, that might create bullwhip effect and over disrupts the operations of supply chain management. So uncertainty in demand of end user creates huge risk that disrupts overall supplying process in market.

The second one is supplier risk that could not be avoided completely; the late deliveries of supplying finished goods of office furniture in the store create defiance in fulfilling customer order. Longer lead times in delivery of finished products and lack of supplying effective quality of furniture loss the customer values that creates the risk for our business that influence the company operations.

Environmental risk could also affect the supply chain operations. The environmental risk includes economical change, social changes, government rules and regulations changes and other threats have significant impact on our business. In this regard climate changes like natural disasters disrupt the process of supplying goods from one place to another. The transportation system disrupts where huge amount of natural disasters comes. Therefore, a natural disaster has huge external risk for our business of office furniture store.

Business risk and physical plant risk in which facility or manufacturing plant has faced uncertainty and disrupts the process of supplying material. The uncertainties like fire, employee turnover and obsolete of inventory are the business risk for management of office furniture store operations. The other risk of supply chain includes supplier failure, regulatory risk, logistics failure, geo political events and strategic risk. (Malone, 2006)

Manufacturing risk from supplier relationship management has effect the overall processing of managing business operations. Lack of integration with suppliers is the major risk in the internal operations of building supply chain model. When the businesses are well established they ignore to corporate the collaboration efforts that reduce the supply chain optimization in their current process of supply chain.

Supply chain risk management is the major tool in helping efficacy in the supply chain operations. Building resilient supply chain model and mitigation planning creates best practices of supply chain management. We have to development the risk management plan to direct the business continuity in current competitive environment. Modern enterprises in the environment finds successful who successfully implement the structure of supply chain risk management.

Many of the companies spent cost budget on outsourcing, globalization, just in time deliveries, lean inventories and supply base rationalization. We have to develop consolidated model of supply chain to achieve economies of scales of furniture business. In March 2011, earthquake and tsunami in japan creates severe impact on the global supply chain that includes disruptive distribution, supply chain and communication process badly.

Figure 2: Managing supply chain risk from upstream and downstream

The disruptive events may include unintentional acts like hurricane, political unrest or might be unanticipated earthquake. Such unanticipated earthquake poses challenges for the out furniture business model by threat of security and transportation system in supplying finished goods. Thus manufacturers, suppliers and customer poses challenges for the company in managing optimization of supply chain management.

There are certain recommendations for the improvement in upstream and downstream issues of building supply chain. Enterprise resource planning should be initiated in the office furniture business to collaborate with the suppliers. Supply chain integration programs with the suppliers as well as distributors of office furniture business have been taken place to initiated best practices of supply chain management. Monitoring performance of supply chain partners like office furniture business finished goods and its retailers are evaluated to assess their performance. The supply chain performance is the most important in building of business to attain high organizational objectives. Vendor management inventory and CPFR collaborative, planning, forecasting & replenishment are authenticating models that should be taken place in the office furniture business to remove the issues in the inventory and supplier relationships.

Supply chain risk management that protects the process of logistics, manufacturing, and quality of goods, quality assurance and procurements. Business continuity planning should be initiated in the current office furniture business to remove any discrepancies and probability of risk occurrence.

Mitigation and contingency planning should be recognized in the current business portfolio to secure the operations of supply chain model. Building proactive roadmap and action of visibility supply chain elements with authenticate supplier confirms the high performance of supply chia management. Continuous improvement and formulation of supply chain leadership in current competitive environment to leads to best indication of office furniture business building supply chain.

Conclusion

Thus to sum up all discussions about the building of supply chain in office furniture store indicates complexity in integrating supply chain issues. We have upstream and downstream issues. In upstream issues we majorly face inventory management issues. In downstream issues distribution and reaching to retailers are major challenges in the supply chain business model. The supplier quality management control tools integrated in the supply chain process to recognized major shortcoming that might be occur in the supply chain management. Certain risks are associated with the development of business that must be confronted by effective implementation of supply chain risk management plan. In last recommendations are stated that must be implemented when establishing office furniture store.

Ayers, J. B. (2006). Handbook of Supply Chain Management, Second Edition. CRC Press.

Banker, S. (2015). Supply Chain Education: A New World. Retrieved November 29, 2015, from http://www.forbes.com/sites/stevebanker/2015/10/02/supply-chain-education-a-new-world/

Hugos, M. H. (2010). Essentials of Supply Chain Management. John Wiley & Sons.

Malone, R. (2006). Worst Supply Chain Risks. Retrieved November 29, 2015, from http://www.forbes.com/2006/11/15/risks-supply-chain-strategies-biz-logistics-cx_rm_1115strategies.html

Ross, D. F. (2010). Introduction to Supply Chain Management Technologies, Second Edition. CRC Press.