somerset global supply chain

2670 WordsJun 5, 201411 Pages
Discuss Somerset’s global supply chain. 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…show more content…
However, this process needs to be automated and accessible to their Chinese manufacturer so they are better able to prepare to fulfill the orders in a timely manner. This purchase order process should be combined with a plan that incentivizes their manufacturer to process their orders quicker. They also need to penalize the manufacture for faulty products and late delivery. Although they currently have a Quality Control process they should have their own representative participate in the QC the process in China. Since Somerset has the machinery to make the custom furniture, part of the agreement should include requiring their Chinese manufacturers to use them. They also need to find other manufacturers so that they can mitigate the risk if their primary manufacturer experiences a problem meeting the deadline or there is a problem with the shipping deadlines. New Product Release: Somerset should re-evaluate how they introduce new products and phase out old product lines. For example, instead of replacing the entire product line at the same time they could introduce new products that replace the products are beginning to experience a drop off in demand. They should also examine the cost of replacement parts. They should look for ways to replace the faulty parts at a minimal cost. Standardized Parts: Somerset should identify parts that can be made interchangeable. The use of standardized parts would cut down on the time and skill required to make the furniture without
Open Document