Strategic Supply Chain Management Business Essay

strategical Supply compass distinguishment Business EssayAbstractIn early legs deliver trains were seen as just the ply summons from a societys straightaway supplier through to the immediate customer. They had their own goals, tar induces, deadlines, margins, and policies and to a fault alto explicateher these were cypher on them based on how to cater the merchandiseplace engage. It is easy to come out especially in a monopoly market with actually few outlets which is scatter in a moderate bea. But when the business is growing they hold in to take solid decisions about expansion policies as headspring as the integration of preparation string operations to survive in the market and to gain the competitory advantage with the rapidly changing warring climate.The manufacturing sedulousness faces great challenges equally as any former(a) industry, which is a takings of economic crisis, especially when it comes to the diversified, large-scale companies with ma ssive expansions and a customer base, as utterer Sri Lanka PLC. In particular to perform in the current war-ridden environment its not only the existing methods argon important, but the in style(p) logistics and make out mountain range centering practices are matters a lot as well. Time has changed and out thinking about the way we wipe out our advantage activities as well has to change. Good is not good enough Only our very best will attract the customers in todays combative environment. Producing an excellent harvest is not cut the mustard today.Over the divisions singer (Sri Lanka) body building has strengthen immensely to incorporate with the strategies formulated to face the changes in the environment. A critical study was carried out to down the stairsstand the study private-enterprise(a) priorities in current communicate ambit of vocalizer Sri Lanka PLC the supply chain management principles, strategies and techniques that are used in achieving these haw kish priorities other possible tools which could be used for improving the present deed of the organization and how the company keister go beyond the excellence by using these practices as well.(Abstract is not included in the word count)1.0 Scope of the AssignmentTo investigate vocaliser Sri Lanka PLCs supply chain with a view to,Understanding the supply chain systems and operations and to assess its impact on the chain.Identify the current supply chain strategies and the influence from various market conditions.Make recomm expiryations in regularise to improve the current supply chain in the company and everyplace come the identified critical issues and challenges by applying strategic supply chain management principles.Company Overview vocalist Sri Lanka Started its operation in 1872 in Sri Lanka and is a Company that has grown over the years into a benchmark entity in Sri Lanka in terms of popularity, modernity and r all(prenominal). vocaliser today is synonymous with qual ity, huge reach, and wide fruit range across diverse lines and wide draw in to consumers across the entire spectrum of depraveing power. Source - vocalizer (Sri Lanka) PLC yearly reportSinger Sri Lanka PLC is a diversified, large-scale company, which was established and started its operations with few shops and now Singer has nearly 550 retail outlets spread all over the country with a group of much(prenominal) than thousand permanent employees. Further more than Singer has astray spreaded distribution persuades, such as Singer Plus, companys largest distribution channel, Singer Mega ,which optimises admittedly modern affair retailing, promising a shopping experience on par with the best in the world, Singer Homes, the piece of furniture store contributed to tolerate high quality and stylish furniture, Sisil World, promotes generally Sisil brand merchandises and it is the second schedule in the distribution hierarchy, Singer Wholesale, Satellite shops and Duty Free etc are the other channels of distribution. Singers product portfolio is extremely diversified and consists of products across a range of household, industrial and financial categories.Singer product portfolio(Source Singer (Sri Lanka) PLC Annual report 2009)Organization Structure PyramidSinger Organization structure consists of three principal(prenominal) management trains which include Junior, Middle and Senior. Senior and shopping mall levels has two sub layers as illustrated below.A exotic Component Suppliers B Local Component SuppliersProdimix International Germany ArpicoHaffle Fittings Italy Regional SharpenersDolken Company Germany St. Anthonys Company rubber tree Company MalaysiaLaminex Company AustraliaC Other Local Suppliers D Foreign SuppliersSoft Logic National/ PanasonicEpsi computing devices SonyCraft Suppliers SamsungNilkamal HitachiTCLWhirlpoolWedgeUnixE Retail Outlets F Corporate CustomersSinger Mega DilmahSinger Homes NestleSinger plus John Keels HoldingsSisil World Media Services (Pvt) Ltd.The Supply string rivalrySupply Chain is a network of connected and interdependent organizations in return and co-operatively working together to manoeuvre, manage and improve the flow of materials and information from suppliers to end users(Source Christopher 2005, p.6)It is clear that current world companies brush asidenot act individually and survive or gain a competitive advantage in the market for a long run. T presentfore supply chain integration is a goodish concept for survival and growth in todays business environment. A product or a service should harbor key attributes to be competitive in the market place, which are known as the competitive priorities. The competitive priorities may change with the market segment. For example, when consider the Singer customers in a rural area may be fire primarily in the cost of product while the customers in urban areas are interested in quality of the same product.3.1 Identifying th e warlike PrioritiesCost AdvantageThis is a strategy where the company seeks efficacious facilities and uses tight cost controls to produce products more efficiently and rough-and-readyly than competitors.Singer Sri Lanka had only around 10 brands in early 2000 and in the main concentrated on market penetration by providing affordable products to the mass market. In order to bring down the toll, the company has driftd to strategic sourcing of its major brands through an intermediary which purchases for the entire sulphur Asian region which affects economies of scale.Eg i. Discontinued the TV plant at Singer Industries Ltd., Ratmalana in 2001 and started sourcing form China.ii. Started the party in Piliyandala for furniture water pumps to sign on imports as well as duties and offered innovative products at a competitive prices.At the same time manufacturing plants should plan their systems in such a way that all resources such as material, labour and machines are efficient ly used to bring down the cost signifi goattly. Also company should make surely to keep sufficient margin to cover all other overheads before going to sign on the selling price to get more volumes. This mess be illustrated as followsValue AdvantageCustomers dont buy products, they buy benefitsAdding value through preeminence is a powerful concept of achieving a defensible advantage in the market. Singer has moved to a differentiation and multi brand strategy to enter into a freshly era of retailing. In all categories, different brands mental attitudeed to appeal different customer segments.Singer trade name has changed to SINGER plus from SINGER on 1st of January 2007 and the guideword to MORE BRAND MORE CHOICE. It enables to increase the appeal to customers and the message of choice available in the stores and adds differential plus over competitive offerings.Singer adds value through service by providing unmatched service to their customers by giving not just a product bu t with a full package which includes super shopping environment, friendly customer carry off staff, product demonstration, discount schemes, easy payment schemes, free delivery to the accession step, free installation, customer training, free serve for selected items like A/Cs, extensive warranty scheme, excellent after(prenominal) gross revenue service, etc.When considering the product architectural plans, authentic designs may increase inventory holding or transportation be with long manufacturing lead time. In Singer essentially in furniture factories this issue can be seen. This will be a huge impact on the whole production of Singer factories if not the right way address the problem.Multi Channel Strategy(Source Singer (Sri Lanka) PLC Annual report 2007) tar Lead Time Consumers in all markets, industrial or consumer are change magnitudely time sensitive and this is reflected in their purchasing behavior. This should be visible from the time of manufacturing to the delivery of the item.In all the Singer factories they use Computer Numerical Control (CNC Programmable machines) to make sure speedy, efficient and reliable manufacturing process. As a policy they similarly maintain average three months terminate goods inventory in all the spud keeping units (SKUs) in customary and 1.5 to 2 months finished goods inventory for identified fast moving items in the sub warehouse. Singer also has the island wide distribution network with more than 500 shops and goods are transporting everyday to all the locations from the central warehouse. Shops are also permit to keep sufficient inventory in their stores.But here the main issue is that the uncertainty of holding more inventories. though they subscribe reduced their lead-time, with the volatility of the markets some times they have resulted in excess inventory situations, where sometimes the loss can be very high. This is mainly for the items such as televisions, refrigerators and white goods (w ashing machines, home theatre systems) etc. since these can be out dated with the new technology enhancements. This should be communicate for an immediate solution, because it can have a huge impact on the whole supply chain in the long run. prime(a)Quality should be there in every aspect including design quality, process quality, product quality, service quality, etc. While maintaining ISO 90012000 standards Singer Sri Lanka factories make sure that every item produced up to the required or expected level in terms of both quality of conformance and quality of design.In overall companys point of view it is also a crucial factor to maintain the balance approach amidst the price and quality of all the products. So to have a full range of products in each category company has decided to go with multi brand strategy, where the company doesnt pauperism to compromise quality and damage the brand image due to get the price advantage.Analysis of key areas in Singer Supply ChainAnalysis o f the above competitive priorities has given a clear insight about the issues that can be impacted on the current supply chain and also here I would like to draw the attendance on major key areas which should be considered to have an effective and efficient structured network for the business organization.Areas to be reviewedSupply chain competitive strategySupply chain high spirits, flexibility and responsivenessHow well the supply chain is synchronized4.1 Supply Chain Competitive StrategyCompetitive context of business continues to change basically because of four major reasonsi. The new rules of competitionii. Globalization of industryiii. Downward pressure on priceiv. Customers take power to demand on goods/ servicesAnalysis of authoritative SituationCurrently Singer Sri Lanka has an home(a)ly integrated system which provides mainly an end to end planning framework and they highly depend on the hierarchy. So there is a high possibility of delaying the decisions due to wis h of say-so and authority levels. Also the focus on reducing obsolescence decently is also a major issue.Possible Strategic RecommendationsSinger Sri Lanka has to move ahead with external integration with their worldwidesuppliers this will lead to manage better up stream and down stream interaction in orderto maintain an effective and efficient value chain and to get a better cost advantage.By having an effective ERP system they can handle all the transactions and informationregarding the manufacturing, logistics, distribution, shipping, invoicing, accounting,human resources, shop sales, market campaigns, bargain or auction sales, promotionactivities, etc. through this and also by applying internet, intranet and extranet facilitiesthe company can avoid having excess inventories and maintain a proper inventorywhich is aligned with customer needs, especially when it comes to the multi brandmulti channel concept. The other important fact is to identify the power position ofSinger re lative to their suppliers and customers with regard to the scale matters.Finally in this aspect they have to focus on managing 4Rs (responsiveness, reliability,resilience, human relationships) thoroughly to strengthen the linkages between the customersand suppliers, where the competitor would consider hard to break.Best fit in an organization can be illustrated as follows4.2 Supply Chain Agility, Flexibility and ResponsivenessDemand in todays vaporizable markets causes most of the current pressure on supply durance to compete as networks and to use planned network configurations to drive flexibility, agility and responsiveness.Agile or Lean?Analysis of Current SituationIn the current status of Singer Sri Lanka, they keep sufficient stocks of finished goods in ware houses of each channel and also raw materials at the main Singer factories, where some times it can cause huge losses because of excess of stocks. Though the overall lead time is reduced when under taking special orde rs such as providing customized items for corporate clients locally or internationally, there can be situations where timely response may be poor.Possible Strategic RecommendationsBy making the supply chain more warm it can make the operation of the company moresmoother. For this applying the 7 principles which is given in Table 1will be important.Efficient responsiveness should be improved by de-coupling the up stream and down stream processes and utilizing the principles of appreciation wherever possible.As the company strongly believe that there should be a flexibility and variability in all categories. It can be improved by developing new products, by incorporating some product changes to fit the customer specifications and also quickly able to respond increasing and decreasing demand due to the placateal sales pattern and also can position different brads to appeal the different customer segments in terms of quality and the price.Table 1 Basic Principles for the creation o f agile supply chainPrincipleApplicationSynchronize activities through overlap informationNeeds to enhance the companys new IT systems (ERP system, Electronic fund transfer, Internet, electronic mail etc.) which enable effective on line purchasing other services bestow Smarter not harderReduce non value adding activities such as manual(a) activities identify the parallel processes in the company (already this is done up to certain level of transactions)Partner suppliers to reduce inbound lead timesWork more closer with suppliers and share information about different demand schedules to reduce time delaysSeek to reduce obscureityEnhance the set ahead capabilities of information systems increase the transparency of processes to reduce confusion delaysPostpone the last configurationThis is already being used for certain range of itemsManage processes not just functionsNeeds to manage across its supply chain or the inter related cross functional processes to be more flexible agile in responding to demandUtilise appropriate performance metricsSinger already uses performance monitoring metrics, but can make out the other possibilities which fits the structure of the organization do requisite modifications design improvementsEnhance the supply chain strategies through agility4.3 How well the Singer Sri Lanka Supply Chain is Synchronized?Synchronization implies that each stage in the supply chain is connected to the other and that they all swear out to the same drumbeat. The way in which entities in a supply chain become connected is through shared information.(Source Christopher 2005, p.177)Key processes that needs to be linked, up stream and down stream to supply chain synchronising of Singer Sri LankaKey ProcessesAnalysis of Current SituationPossible Strategic RecommendationsPlanning SchedulingThis is done by sharing information between each class, but the main focus is on the first score customers suppliers.Properly linked information system should be im plemented with an integrated ERP system in order to have a proper control over the lead time inventory.DesignSince the poor communication with the tier 2 suppliers it has lead to a lack of market innovation and confidence about new design developmentsIT based systems (e-mails, internet etc.) can be used to optimize the connectivity among all the tiersNew overlap IntroductionThough this is done through the differentiation strategies, still there are curl up holes where the trends are not clearly identified and communicatedWhen this comes to the bulk production it is crucial to identify obsolete items and replace them with new product designs. to gain competitive advantage For this properly linked network channel is essentialProduct Content ManagementWhen a change is required it has implemented after going through a very long process where solely based on the hierarchy of management, which is very time consuming and coordination compoundShould have a proper alignment with the str ategies and the critical processes in the supply chain to minimize the impact over the customersOrder Management or so of the main suppliers have their own individual order tracking systems and basically the order processing is done by basic methods as communication via telephones, where timeliness is a questionTo increase the agility with the highly volatile market demands Singer has to be inline with new technological advancements where they can reduce the order management time and optimize the efficiency of the whole supply chainSourcing ProcurementThis is performed well in the current system, but this is limited due to high confidentialityAs some of the suppliers work with competitors this should be anticipate but can be improve the visibility by having strategic federationsProperly synchronized system would be as follows4.4 Other recommendations for come along improvements in supply chain managementMini Warehouse fancy Since singer has more than 500 retail shops islandwide , keeping sufficient stock at each locations is involving considerable standard of money. So its better to get patronage mini warehouses in each district to maintain required inventories.Be Green Through Reverse Logistics Company can reverting back all outdated and obsolete goods directly from the customers and try to send these to their suppliers at a nominal amount, which they are sometimes in a position to upgrade the products again. This reverse logistic concept can extend into having a more greeny environment as a responsible corporate citizen. interchange Major Suppliers Into Strategic Partners Singer can try to discuss with its major international suppliers and convert them to strategic partners via joint venture or partnership agreements, which would enable to have a long lasting business relationship to both parties.Optimize Supply Chain By nature consumer steadfast market is categorized as a seasonal market. Singer sales pattern has two main seasonal effects throughout the year (Apr/May and Nov/Dec). Its quite common land to run out of the stock during seasonal times and having excess stock during off seasons. Both ways this is not good for the company since they are loosing customers during the season while considerable amount of money tied up in the inventory during the off season period.Structure Vs Strategy Companys typical tall hierarchical structure in not infavour of the decision making system since each minor decisions should go above the line to the top hierarchy, which takes lots of time to get the final exam decision to the down the layers. If the company can adequately empowered its in-between and first line managers company can be more proactive than the existing situation.Red to Blue Ocean Strategy Singer has lean of head to head competitors in the market who are engaging in the business in similar nature. So company can direct identify its strengths and competitive priorities (which can be experienced management team, islandwid e network, etc) to be edge over the others in the competitive environment. In other haggle they can enjoy lots of advantages by following the Blue naval strategy.5.0 ConclusionSupply Chain Management principles and techniques are not common to all the industries. Some times it can be a complex scenario in which it also change time to time due to internal industrial factors such as union actions, product line changes, design changes, etc. and due to external factors such as changes in economic condition, other company rules and regulations imposed by the government, new market competition, international market forces, etc.Singer Sri Lanka has strong formulated strategies and also as per the analysis carried out considering the strategic recommendations will be more effective in achieving sustainable competitive advantage in the industry by efficiently managing its supply chain.So it is vital to be more realistic when selecting the proper supply chain management principles and tool s in a highly volatile and dynamic environment. This also can be result in reflecting the bottom line profitability of the organization.