An Effective Supply Chain Management

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Introduction An effective supply chain management is critical to success in today’s business environment where competition, risk and uncertainty are challenging. Ahenkora and Peasah (2011, p.278) state that ‘the need to deliver on clear strategic choices in today’s hypercompetitive business and uncertain environment is greater than ever’. Electrolux, one of the major players in the home appliances industry, has modified its strategy over the years, adapting its business to new business requirements and customers’ expectations, allowing the company to work towards its vision to be the best appliance company in the world as measured by customers, employees and shareholders. Electrolux sources its supplies from different countries,…show more content…
1 Electrolux group Swedish based, ‘Electrolux has been doing business since 1919. Today, the company is a global leader in home appliances, selling more than 50 million products to customers in 150 markets every year’ (Electroluxgroup.com, 2015). Its business includes the Major Appliances (refrigerators, cookers, dishwashers, washing machines & dryers), Small Appliances (Vacuum cleaners & accessories) & Home Comfort products (air conditioners, water heaters and heat pumps). Electrolux is the main trading brand; however, the range includes Westinghouse, Zanussi, Eureka, Frigidaire, AEG, among others. 2 Description and analysis of Electrolux supply chain and logistic systems Electrolux’s strategy is focus on what gives a differential advantage from its competitors, its “core business”. To do so, Electrolux changed from producing their own components to outsource the majority of them, moving towards an assembly of the finished products. Without doubt, this has many implications for the supply chain and logistics management, not the least being the challenge of integration and coordination of the flow of materials from a multitude of suppliers from offshore and similarly managing the distribution of the finish goods by way of multiple intermediaries. To put Electrolux logistics system in perspective, please refer to the below picture, where only one part of Electrolux business supply chain: Major appliances, is summarised. Figure 1: Electrolux major appliances
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