The Scotts Company: Transforming the European Supply Chain

In the following sections I will propose a supply chain strategy which will align company goals and initiatives increasing efficiency and driving down cost thereby creating a sustainable competitive advantage through the implementation of a synergistic supply chain strategy.

As an employee of the company for over 13 years I have seen many changes in the business and supply chain strategies of this organization. There have been numerous and frequent changes in management all the way from the lower level of Trainmaster to a mid-management level of a Superintendent to upper level of Chief Operating Officer. The one constant during this time was the Chief Executive Officer of Michael Ward. In my time as a major in Supply Chain Management I have learned many useful techniques and strategies that will better integrate the business strategy with the supply chain strategy that will enhance profitability, shareholder value and employee satisfaction. Having additional

Alex Coldfield, the VP of SCM, Westminster with team of high level managers has decided to improvise their supply chain capabilities to face these issues in a prominent way. They are analysing their customer composition and customer service requirements and align it more towards cost reduction. Alex also plans to implement three strategies to align the network redesign.

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.

Assume the role of Pierre Pirard, I would execute the supply chain re-engineering for the value it could bring. The turnkey strategy would greatly improve Elizabeth Arden’s performance on supply chain efficiency and effectiveness. The plan should include supplier consolidation to reduce COGS as well as an improvement on working capital. It also requires a re-design of the organization structure.

However, change can be a risky process that can have negative, instead of positive, consequences for the company’s future. In fact, it has been estimated that only about half of the large scale interventions succeed. With the above in mind Bruch, Gerber and Maier (2005) aimed at identifying the characteristics of a successful strategic change program by using the case of German aviation Group Deutsche Lufthansa. Lufthansa succeeded several times in successfully implementing change, as a response to the turbulent aviation market conditions between 1991 and 2004. Lufthansa’s last, and most successful, strategic change program was the D-Check. Part of what made D-Check so successful was the fact that Lufthansa’s management made a distinction between leading decisions and managing decisions. Leading decision deals with conceiving a clear goal – in other words, what would be right. Managing decision deals with finding the way to achieve the goal – in other words, how do we do it right. Therefore, before implementing change a company should clearly and conclusively resolve the issue of what change would be right and how can be done right. Key questions are the following:

Target works on trying to find environmentally friendly ways get the product to the customers. They work on reducing their carbon footprint by working with experts on ways to improve their packaging and transportation. (Target Corporate 2016.) They also try to get their manufactures to use sustainable apparel and footwear products. They encourage their customers to follow manufactures suggestion by washing apparel in cold water to help reduce the usage of water and energy consumption. (Target Corporate 2016.) Targets products come from all over the world.

5. Is change needed in its long-term direction? its objectives? strategy? its approach to strategy

Very large customers accounted for 70% of business and no single customer accounted for more than 2 %

The O.M Scott & Sons Company has had continued success in the grass seed and lawn care industry. The company started in 1868 as a local company in central Ohio, focused on selling grass seed only. The company saw great opportunity in the lawn care industry, so it decided tot take action. O.M Scott & Sons grew into a national company that distributed its products by mail, and eventually sold to retail stores nationwide in 1959. The company was able to grow expanding the company’s field sales force. This increase in sales force led to a continued increase in sales and profits, which allowed the company to invest in R&D more heavily. This increase in R&D led to better products, which further increased sales and profits. The objective was to service the various retailers across the U.S with adequate inventories, especially in the high seasonal peaks. This was difficult for most of the smaller sized dealers the company was selling to, so Scott had to fund the dealer inventory buildup by itself.

* Since no inventory is maintained at near-by locations, the goods will have to be fetched from central warehouse thereby increasing lead time.

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

Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.

The picture on the front cover is painted by Rufus Kogg Röjder, aged 3 ½.

Somerset Furniture Company (SFC) was founded in 1957 in Randolph County, Virginia. Traditionally, SFC manufactured large, medium-priced, ornate residential home wood furniture such as bedroom cabinets and chests of draws, and dining and living room cabinets, tables, and chairs. Somerset prides itself on customer service. They believe that late deliveries to its customers would harm its credibility and result in loss of customers and excessive inventories. Somerset has recently set up new strategies and tactics to meet goals and improve global supply chain. They first found their problems were, and focused on its core capacities that will improve productivities and reduce inefficiency to win in the