Essay on Norwaycycle Supply Chain

2785 Words12 Pages
Supply Chain Management and Strategy
Assignment 1
Ross James
BA Management
Matriculation Number- 200109229
Module Code- MHN220298
Word Count- 2663

Table of Contents

1.0 Introduction
Norwaycycle are a Norwegian bicycle manufacturer supplying bicycles to professional cyclists and those with a passion for cycling. While they sell their bicycles onto distributors they also have 8 shops of their own in major cities throughout Norway. They customize bicycles, run bicycle clubs from their shops, offer servicing, provide information on cycle routes and offer general advice regarding bicycles. This service gives Norwaycycles a customer base and promotes word of mouth.
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This could be in the form of feedback from the customer which flows upstream from consumer. An example of this in the case of Norwaycycle could be if consumers did not like the pedals fitted to Norwaycycles bikes, the consumer could notify the retailer who would then pass the information on to Norwaycycle who could then tell their supplier who could then decide if it would be beneficial to change the design of the pedal to make it better in the eyes of their customer.
There are decisions that management of Norwaycycle must make when designing the supply chain network. According to Chopra and Meindl(2012) network design decisions have a large influence on performance because they determine the setup of the supply chain and set constraints which affects other factors within the supply chain such as supply chain cost or responsiveness. This can be deciding what role each facility will play, facility location, capacity allocation and deciding what market each facility should serve. Other factors Norwaycycle need to consider when configuring their supply chain network is disintermediation (getting rid of middle men), co-opetition (working with competition), vertical integration (buying over supplier/retailer and taking over operations) and outsourcing (allowing a company with more specialised knowledge to take over a certain part of the operation). All of this has to be considered by Norwaycycle in order to meet the demands on quality, speed, dependability,
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