The Right Supply Chain

Westminster Company is a giant Global manufacturer of health products whose brand has been recognized by the world. As the company they have three different operations which produce and distribute different product lines. Their main strategy on which they are working and which is a major success for them is decentralized management. Now they are re-evaluating their traditional supply chain strategy because the company is getting too much pressure from their large domestic’s customers and global customers. Now the company has to study on

Supply chain innovations should ensure on-shelf availability at retail outlets, improving collaboration between vendors and retailers, translating supply chain costs to product pricing, lean inventory and real time replenishment. Wal-Mart should ensure that process differentiation to determine the right method of moving products with varying demand characteristics (Akehurst, C., & Alexander, N. (1995)

A supply chain is a net work of firms. Thus, each firm in the chain should build its own supply chains to support the competitive priorities of its services or products. Two distinct designs used to competitive advantage are efficient supply chains and responsive supply chains. Efficient supply chains work best in environments where demand is highly predictable. The focus of the supply chain is on efficient flows of services and materials keeping inventories to a minimum. The firm’s competitive priorities are low-cost operations, consistent quality, and on-time delivery. Responsive supply chains designed to react quickly in order to hedge against uncertainties in demand. Work best when firms offer a great variety of services or products and demand predictability is low. Typical competitive priorities are development speed, fast delivery times, customization, variety, volume flexibility, and top quality. Tables below show the environments and design features that best suit each design.

Product- A product is anything that can be offered to a market to satisfy a want or need, products include physical goods, services, experience, events, persons, places, properties organisations, information and ideas. It is therefore the combination of goods

Flinchbaugh, J. (2012, December 17). Lessons from the Road: Reducing Lead Time Changes Everything. Retrieved April 02, 2016, from http://www.industryweek.com/

The value delivery option is another component that supports the supply chain. Providing attention to the changes within consumer demands that will aid in rapid production of consumer products. In order to gain a larger view of the said component it is vital that the value-based method must be clearly understood. Based on the findings of (Feller, A., Shunk 2006).the ability to realign the structure of the supply chain, this process will allows the supply chain to sustain its effectiveness by adopting to changes in consumer necessities with merchandises of larger value. A diversified supply chain is constructed to match the overall components of the chain with customers need in mind. But if this construction of the supply chain doesn’t match the needs it will make nearly impossible for the organization to provide said products and services to the consumer.

When dealing with closed loop supply chains, complexity increases, management information systems may have to be restructured, and uncertainty may also build up. “Several sources of uncertainty were identified such as demand, availability of raw materials, prices, promotion of new products and for the closed-loop supply chains uncertainty in the amount of non-conformance products or on the level of returnable end of life products”.(Cardoso,Science direct). Demand levels and other

The correct decision depends on whether the product is sufficiently innovative so that it can justify the cost of making the supply chain responsive. Turning your product from innovative to functional makes sense when the variety offered is not really necessary. On the other hand, when a company has an efficient supply chain for its innovative products, the solution is to make some of them functional and organize a responsive supply chain for the rest of them.

efficient supply chain. There are two main factors that go towards deciding the actual point of

Contrary to the above stated argument, another study takes a closer look at the role of a group of non-functional product’s attributes, may lead to a slightly different conclusion. The research was administered to the

Exhibit 3 illustrates how a product might be positioned in its market. It will probably excel or lag behind in product features or supply chain design, or both. Companies with many products will have some in each category. As a matter of fact, most will prune underachieving products and businesses — characterized by “D’s.” The Product Excellence dimension rates the product against competitive products in its chosen market. The best in class will rank highest in terms of functionality, reliability, and value for price.

According to our book product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects,

Product providing different types of product quality to meet the demands of all consumers and owning a large supply chain to meet all the needs of consumers. And the provision of goods and products of all assortment and provide the largest number of them to attract the largest number of consumers and their needs for easy sale.

The size and efficiency of the firm depend upon the supply chain and various different activities which are included in-house. The supply chain activities, product, and services are produced by the firms depends upon the vertical and horizontal boundaries of the company.

Any product or service that can be exchange in return for money will fall under this category. It may be a single product or a series of products that falls under a product line. This is because the more the goods sold; the demand for that particular item will rise increasing the sales eventually making it a successful product.