Running Head: GLOBAL SUPPLY CHAIN AND POSSIBLE REMEDIES

Global supply chain and possible remedies

(A review of Literature)
Students name
Department of Information Technology
University name
Instructors name
7rd September 2015

Global supply chain and possible remedies

Table of Contents
Global supply chain and possible remedies: Case analysis.......................................................3
Shipments of Raw Materials and Inconsistency of Product Quality..........................................4
Poor Distribution Network and Transportation Management....................................................4
Ineffective Order Management..................................................................................................5
Poor Transportation Management..............................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

Global supply chain and possible remedies

Global supply chain and possible remedies: A review of Literature

Global supply chain and possible remedies: Case analysis
In tune with increased economic globalisation and offshore sourcing, international
offer chain management is changing into a significant subject for several businesses and
Somerset article of furniture is one in every of the businesses facing the challenges once
came upon its international offer chain. The business strategy constitutes overall direction to
realize company objectives and goals in future, however offer chain strategy focuses on
driving down operational prices, streamlining procedures and increasing efficiencies.
However, most corporations have tremendous business methods however most of them area
unit unlikely designed a seamless offer chain strategy which might lead to nice failure once
doing business overseas.
In this case study, Somerset's current approach to manage its provide chain resulted in
poor business performance, the visible hazards and different negative factors pissed off
county enclosed poor supplying management, ineffective order system and inventory
management similarly as inconsistency of product quality. In adopting a worth chain, county
should incorporate and execute a strong provide chain management strategy for best-fit
suppliers choice, more establish on the way to work with provide partners, distributors,
suppliers, customers or maybe customers as how to stay competitive. Otherwise, the
corporate won't survive.
As the marketplace changes chop-chop and becomes terribly competitive, it's crucial
that county reinforces existing relationships and work along internally and outwardly. Those
being aforementioned, a well-practiced provide chain strategy ends up in worth creation for
the full organization. During a shell, provide chains have shifted from a price focus to a client
focus, till presently to a strategic focus, scrutinizing the success of a technique is simply
pretty much as good because the company's capabilities to totally and properly execute all. A

Global supply chain and possible remedies

good provide chain strategic approach, connected with operational excellence, will give
success for not solely the corporate in crisis however additionally its partners and customers.
While county developed an honest strategic promoting set up for regularly launching
new product lines each few years throughout half the 20 th century, at the same time,
toughened the positive effects of applying the TQM in its piece of producing and popularly is
thought as high-quality nevertheless reasonable wood furniture supplier in domestic market.
However, since the mid-1990s, the corporate suffered from the stiffer competition, high
labour rate and decreasing profits. To induce out of this example, county started outsourcing
many piece of furniture product lines to China that helped have the benefit of cost-efficient
and reduced operative prices. Another strategy was reducing the producing facility and labour
force, to stay the low prices in line with the pace of outsourcing. It absolutely was terribly
winning initio in reducing prices and increasing profits for the corporate.
Shipments of Raw Materials and Inconsistency of Product Quality
Somerset's international offer chain facilitates the wood shipments from the u. s. and
South America to producing plants in China. This cargo itinerary takes a protracted time to
arrive China; there'll be surprising delays for process cargo that incurs client complaints and
orders cancellation. Despite of long shipping time, the prices of cargo to the ultimate
destination and therefore the stuff from North American nation and South America area unit
apparently high that reduced the profits. As the producing plants utilized Chinese employees
to provide merchandise by hand in China, it'll cause discrepancies in product dimension and
quality. Customers would evoke exchange or refund because the quality isn't assured by
hand-made.
Poor Distribution Network and Transportation Management
The finished furnishings product area unit shipped by containers from metropolis or
Shanghai to metropolis, Virginia, once arrived, the containers area unit transported by truck

Global supply chain and possible remedies

to county warehouses in Randolph Country, wherever all of retailers stores settled and put in
the furnishings to forestall from injury throughout transport.
Ineffective Order Management
It is found that there are some vital flaws exist internally inside Somersets world
provide chain on its order process and fulfilment system. county processes orders weekly and
biweekly and it takes 7-14 days to developing demand forecast and twelve -25 days for
process order that quantity whole twenty two to forty five days for commercial instrument to
eventually complete. It needs another sixty days to provide product by hand once going into
production.
Poor Transportation Management
As required by Chinese provision, all finished furnishings things need to be
transported from the producing plants to Chinese ports, which might take up to many weeks
counting on hauling handiness and schedules. Since 9/11, random security checks of
containers can delay cargo for one more one to a few weeks and also the trip overseas to
metropolis takes twenty eight days.

Manufacturer storage with direct shipping

Manufacturer storage with direct shipping and in-transit merge
Distributor storage with package carrier delivery
Distributor storage with last-mile delivery
Manufacturer/distributor storage with client pickup
Retail storage with client pickup
Somerset will choose one among on top of distribution network to assist in rising its

distribution network.
Conclusion
Choosing the manufacturer storage with direct shipping can facilitate to eliminate the
movement of furnishings from county warehouse to retail stores. This can have the benefits
of higher customers expertise and lower inventory prices. Installation of hardware will thus

Global supply chain and possible remedies

even be done at customers house rather than at retail stores. However, it's the disadvantages
of upper transportation prices (because of magnified distance and disaggregate shipping) and
requiring investment in info infrastructure to integrate manufacturer and distributor.
Another improvement in transportation is to eliminate export of raw materials from
North American country to China by sourcing these materials from China or its close
countries. This not solely saves transportation time however conjointly prices of materials.
Business department of county can therefore have the task to supply for these new raw
materials. Somerset also can assist within the implementation of lean producing for its
outsourced China mill or introduce Lean Six letter methodology to effectively management
the method for higher consistency in products quality. The wants for the flourishing
implementation of lean producing are:
All levels within the plant, from the assembly employee to the president should be
educated in lean production philosophy and ideas.
Top management should be entirely committed to the present venture and supply
necessary leadership. Everybody should be concerned within the amendment, and therefore
the internal client should be scattered to play an important role during this evolutional
method. Everyone within the plant should perceive that price, not price, determines profit.
The client determines value, the plant determines the value. Everyone should be committed to
the elimination of waste. This can be basic for turning into lean.
The conception of standardization should be instructed to everybody and applied to
documentation, methods, processes similarly as system metrics.
References
Joubert, S. (1996). Imperativeness of a Long-Term Crime Prevention Strategy for South
Africa. Acta Criminologica, 9(1), 7-10.

Global supply chain and possible remedies

Lewis, C., Brooks, G., Button, M., Shepherd, D., & Wakefield, A. (2014). Evaluating the case
for greater use of private prosecutions in England and Wales for fraud offences.
International Journal of Law, Crime and Justice, 42(1), 3-15.