kiwi case study Essay

Strategic alliance and supplier certification helps to improve quality of the products (Wisner & Tan, 2000). Both of the steps will gave benefits to firms that practiced SCM. The characteristic of strategic alliance or supplier alliance was the continual flow of communication between two the two firms (Zsidisin & Ellram, 2001). Advantage of strategic alliance can improved supplier’s service levels. Strategic alliance will reduce delivery times, inventory levels, and total costs of end products. In addition, strategic alliance program will increase cooperation of communication between manufacturer and supplier. Product quality is important in supply chain management. So, strategic alliance between manufacturer and suppliers gave benefit of improvement in quality of the products. When supplier delivered products on-time, total costs will be reduced, it can increased profits for both of the organizations. Strategic alliance between two firms can increased customer

Supplier chain management (SCM) has been the most imperative management function for attaining long term competitive advantage. As competition is in global markets, firms are facing challenges enhancing their performances, from getting quality right to serving disparate and fluctuating markets.As a result, acquiring a good understanding of SCM practices has become essential to sustain profitable in today’s highly complex and competitive business world. From a hypothetical perspective, this study shows the involvement of various kinds of resources to different performance measures. The research findings provide feasible insights for managers to comprehend the effectiveness, and also weaknesses, of distinctive supplier management practices in enhancing different operations performance measures of firms.

SUPPLY CHAIN MANAGEMENT: Effective supply chain management is one of the most important operational strategies that allow company to enjoy sustainable competitive advantage. More than the manufacturing expenses the distribution costs are high. If a retail firm has a proper supply chain management it can cut down the cost and have a competitive advantage of providing goods at lower cost. The cross docking concept that was introduced by the Wal-Mart was one of effective concept.

Unlike traditional supplier/buyer relationships that had a narrow focus, contemporarily such relationships are becoming more strategic thereby yielding adequate reduction of risk and good technological leverage etc. It should be recognized that this relationship is the most powerful process of consumer satisfaction.

Strategic Sourcing embraces several WCSM concepts and greatly facilitates progression to world-class status. It is a systematic process that directs “supply managers to plan, manage, and develop the supply base in line with a firm’s strategic objectives. Simply put, Strategic Sourcing helps organizations achieve the full potential of integrating suppliers into long-term business partners. Strategic Sourcing used by buyers and sellers help identify new types of materials and technologies available.

The sourcing strategy is determined as new evolution in supply chain management in comparison with traditional sourcing method. Previously, the companies made sourcing decisions through peers to peers discussions between the companies and the suppliers. This discussion could be explained as process of the suppliers and the companies use expressive language in order to reach win-win deals. This process might be helpful in the dimension of which the companies and the suppliers can highlight their worries about the procurements and to identify the solutions to better overcome (Sandholm et al., 2006). However, this process, normally, often takes time and it lacks of structure and transparency. Further, the traditional method creates the difficulties in making final decision in case there are not so many suppliers that

Supply chain management from the source to the final customer by aligning the capability of supplier manufacture, distribution channel and customer. To optimise all the process and thereby go beyond function excellence (excellence within department) and ensure cross-function integration and cross-function excellence (i.e. total excellence cross the company).By optimising the supply chain thus wish to achieve world class performances by companies by insuring that the total system from source to customer is full optimised and fully integrated. What are trying to do is to ensure that at each point we add value to the process (not wasted cost).

According to Motiwalla (2011) “Supply chain management is the science of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain.” (P. 305). In fact, Zara’s strategy in the clothing retail business is to comprehend the customers needs, produce new fast styles of clothing, and market it for sale using efficient information systems to gather information, manage product, inventory and distribution. Likewise, Limited Brads strategy managed to consolidate their technology operations into a single shared service for all of its brands using chain technologies and processes to drive the speed to market requirements.

For a purchasing operation to be effective it must adhere to some key points. A purchasing operation must identify the requirements of the user, effectively and efficiently evaluate the needs of the user, and identify suppliers that will meet the needs of the use. They must also develop agreements with those suppliers, develop ordering mechanism with the suppliers and ensure payment occurs promptly and determine that the need of the user was met.

The supplier partnership model is a strategy that promotes world-class supplier quality in supply chains. During the 1980’s this approach began to gain momentum when manufacturers started to realise the shortcomings of traditional transaction based strategies. Organisations started to look at a wider picture that focused on more than just cost, quality and deliveries and began to accept that were additional benefits to be gained by taking a new approach to supplier relationships (Goffin, Lemke, & Szwejczewski, 2006).

10. It also provides the best organizational structure needed to improve the supplier coordination by integrating the logistics, production and purchasing processes together.

Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

The purchasing and supply function is strategically vital in laying the foundation for an organization to acquire a competitive advantage. I have taken this stance following thorough literature reviews and taking into consideration statements that are relative to pertinent techniques, tools, and models. In addition, it has been taken into consideration with a focus on current debates and thinking in the strategic supply and purchasing field. The benefits of efficient supply and purchasing were realized by recent organizations who have acknowledged its strategic importance. Traditional purchasing models were based on tactical processes; with exclusive focus on clerical functions. Nevertheless, purchasing and supply is viewed as a function playing a vital role in attaining strategic organizational objectives for reasons I will continue to clarify (Davis & Spekman, 2010).

A supply chain consists of multiple organizations linked together in a partnership and their overall goal is to satisfy the needs of the end customer.

The supply chain indicates the supply and demand network made up of the raw materials suppliers, manufacturers, wholesalers, and the ultimate consumers (ARNDT, 2004). The supply chain management is the vital concept in the modern management. In the supply chain management, the supply chain integration is just an important management model. The supply chain integration just realizes higher value and competitive advantages of the whole supply chain through coordinating the businesses process and cooperating within the organization and among the different organizations (LEE, 2000). It does not only facilitate the coordination of the business processes in the supply chain, but