SUPPLY CHAIN

Manufacturing and Marketing of a Supply Chain

Manufacturing and Marketing of a Supply Chain

Introduction

The plan is to manufacture and market a line of power hand tools, including electric drills, saws, and sanders. A supply chain has to be established for which a business report prepared that address the challenges of ensuring all business units (Choi, 2006).

Supply chain refers to the production and distribution process involved in the raw material suppliers, manufacturers, distributors, retailers and ultimately consumers and other members with the upstream and downstream members of the connection (linkage) composition of the network structure. Examples of competitive priorities are low cost, quality, on time delivery (Choi, 2006).

Supply Chain Management

A moderately novel management procedure that had great momentum in the past decade and generates significant cost reductions by allowing companies greater higher profits and competitiveness. In the new millennium, competition occurs between supply chains rather than between individual companies. There are a lot of strategies which can be used in the supply chain management like a Keiretsu network, a virtual company or a vertical integration (Chopra, 2004). A virtual company will not be suitable for this supply chain as it is at its initial stages and needs to gather customers. The virtual strategy can be used when the company has become financially stable. The same goes for Keiretsu network strategy as it is a type of business group, this supply chain company of the power tools and drills, needs to establish it self and generate potential customers. For this, a vertical integrated strategy will be effective. The extent at which an organization posses its buyers and suppliers is called as the Vertical Integration. The vertical scale of an organization is a significant corporate strategy's consideration (Chopra, 2004). When deciding to vertically integrate, the two of the concerns which ought to be considered are control and cost.

Metrics for Measuring Performance

There are many metrics which can be utilized for measuring the supply chain. All of these metrics helps in providing an overview of the performance of the supply chain, not just in the conditions of cost and spend but in terms of the information of the supplier as well as aspects of the operation (Dooley, 2001). The Key common supply chain metrics used in this supply chain business will be:

Cost

The cost will be in terms of the cost of purchase, transportation and travel cost, cost of the delivery of the storied items as well as the administrating supplies and revenue costs. Costs should be a common metric because the cost is imperative to the efficacy of the supply chain.

Forecast Accuracy

The forecast of the item's need which are to be supplied will tell about the efficiency of the supply chain. The more customers' demand of the product the better is the quality.

Quality/Defects

Deliveries are an important part of the supply chain. The quality needs to be of good standards and the defects should be at a minimum. A standard measure is PPM or Defects in Parts per ...