Managing Product Procurement : Supply Chain

The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

Risk management is a critical component to the success of any supply chain, yet this is still an area that sees little forward movement. In many organizations, risk management is viewed more as a reactive department, only becoming operational when a significant disruption arises in contrast to being an active and continual department with focused effort. As a supply chain moves to take on a global stance, risk management cannot be treated as a reactive measure. Global supply chains are exposed to greater risk than local/domestic supply chains as their linkage is more

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay

One the main features of H&M is the rapidity of shifts in demand and respond to customers’ needs. In fact when necessities of customers change, in only three weeks H&M can create new items. A normal clothes company needs six months to create new collections or articles. That’s why H&M does many researches all the time to find out new tendencies or variations of styles, giving shoppers last tendencies clothes.

Effective supply chain management can provide an important competitive advantage for a business marketer, resulting in improved communication and involvement among members of the chain, increased motivation, and decreased costs. Tracking the movement of and demand for components used to manufacture a product across a variety of potential and actual suppliers, provides insight and the ability to respond instantly to shortages, surpluses, and changes in market conditions. It seeks to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce cost.

Also the trust of people on the company is very high, because H&M always provide to its customers what they want. In fact it sells clothes for every kind of body and for people of every age and also for all the occasions, from elegant to every day casual clothes. Moreover in H&M stores, people can also find all kind of accessories, from jewellery to lingerie and female

Many companies produce products from parts of raw materials that are purchased from suppliers, till these products are reach the markets and presented for the customers, then you have the supply chain starting from the purchase of raw material from different areas , through the manufacturing steps and stages till is being sold by the consumer. Some of supply chains are well defined and easy to determined, while there are other supply chains complex to analyze. However, supply chains vary with the size of the facility such as; complexities, performance, abilities, flexibility, quality, speed, dependability and cost of preparing goods for manufacturing and the chain length distribution. So the supply chain is a network of wholesalers, retailers, distributors, workers in the transport, storage facilities, suppliers, and manufacturers who participate in the production, delivery and sale of the product to the last consumer. A supply chain is a group of facilities that coordinate activities among it and to avoid the competitors. Moreover, to ensure the supply chain management is operating efficiently and generating the highest level of customer

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

H&M’s fashion oracle and head designer answers the question on how the company could possibly keep up with all of the trends around the world; “What comprises of this fashionable A-team you ask? Well, its designers come from all over the globe; From Holland, South Africa to Japan. The entire team works from H&M 's design center in Stockholm, popularly known as the "white room". It does not stop there however. The team works closely with a mind-boggling number of services to produce its range of apparel - 60 pattern makers, 700 suppliers and 20 worldwide production centers to be exact,” quoted from Clara Lu. “Although H&M’s core operation relies on its designers, creative directors, and pattern makers to stay on top of the latest trends, it also uses the services of fashion trend forecast companies such as Worth Global Styles Network (WGSN). As a fast-moving retailer, it takes on an innovative direction in determining consumer interests through both traditional analysis and experimental augmented-reality technologies,” Continued from Lu. If that’s not enough, on H&M’s webXsite, they have sections just for fashion trends, and articles of weekly fashion finds! The company focuses on street fashion, haute couture, trends from the '50s and clean lines from the '60s. They do this not just because they are on trend, but because they actually listen to what their customers

4. In a service supply chain, the (explicit) cost of information is higher than in a product

Perspective on Risk Management in supply chains; Journal of Operations Management 27 2009 (114-118) @ 2009 Elsevier B.V. All rights reserved

Supply chain management is essential process for every business organization to make a good relationship among suppliers who provide resources to business organizations according to their requirements. Here in this report we will discuss about production strategy and contracts for supply chain for Dell. Dell is a well-known company and serving its customers with its services and products worldwide. It will be better to discuss about supply chain management of this company. Besides this, we will also discuss about seasonal and generic sale of products of supply chain. By interviewing Retail Company it will become easy to know about inventory policies that are adopted by store for order quantity, safety stock and reorder level.