Somerset Furniture Supply Chain Strategy

Introduction

Organizations use the supply chain approaches to have control over the operations and reduce the costs, as much as possible. Supply chain strategy is often intertwined with the supply chain management but supply chain strategy is broader than the other which should be managed well in order to compete in the market. The implemented strategy is a kind of process that evaluates the cost and benefit that an organization can gain through its operation. Most of the business strategies are formulated with an aim to effective compete and at the same time, achieve the organizational goals. This idea is true with the implementation of supply chain strategy because it includes the analytic and decision making processes.

How to Prepare Supply Chain?

Actually, there are no specific steps regarding the development of a comprehensive supply chain strategy that can be effective in an organization. Every enterprise is uniquely founded and their environments are differs among the others. This is a challenge that the organization should identify. Before the development, the organization should first assess the existing supply chain management or the factors that might affect the creation of the effective supply chain strategy (Rosenfeld, et al., 2000).

Commonly, the organization goes back into the basics of business. Through the identification of the essential offers (products or services), when to offer (timing, seasonal), and where to offer (market, retail) the organization can draw its own competitive plan of supply chain. Having a business strategy is a representation of the overview of the business’s future, and having a supply chain strategy can be mirrored through the actual operations. In the end, the supply chain can meet the objectives of the organization. The supply chain strategy is important towards the operations and execution of the activities. In the continuous practice, the efficiencies are maximized and remain competitive in the market. Having a supply chain strategy creates a strong relationship between the suppliers and customers. And an organization should remember that a well executed supply chain strategy creates a value for the organization’s advantage.

Strategies on Strategies

The organization should firstly look on the obvious and existing process that lies within their supply chain. All of the processes involved in the organization can effectively contribute in the successful creation of the supply chain strategy (UPS, 2005).

Performance Management – this is the process on controlling and execution or implementation of the appropriate processed that allows the organization to realize their goals. A well managed performance works with the organization and became the foundation of the supply chain strategy that is being supported and reinforced.

Cost-Benefit Evaluation Process – can be done periodically or annually depending on how complex the supply chain strategy is. This is the investigation regarding on what strategies, practices or methods, products, technologies, etc. can be implemented in the strategy. Within this process, the organization can also look on the new opportunities that can further position the organization towards its success.

Keeping Communication with the Partners – the supply chain strategy is basically deals with many different entities that can be both internally and externally. It very crucial for the organization to align the supply chain strategy along with the business strategy and both ideas are important to achieve the goals of the organization and foster the long-term success. By keeping the communication with the partners and customers creates an impact in rapid pace in realizing the goals because there is consistency in the process and communication.

Failures

Having the strategy is not an assurance that the organization is strong enough to achieve the success. Most of the businesses fail because of the poor implementation of the strategy. The execution is the most important that contributes in the strategy’s success or failure and not on its strategic planning, changes and development. If a strategy is not delivered according to its commitments and decisions are not comprehensively done, the alignment of the supply chain strategy with the business strategy is meaningless. If the people created the strategy, there should be commitment and responsibilities to eliminate the consequences or challenges that can be the cause of its failure.

Conclusion

Developing an effective supply chain strategy does not end there, there should also include the appropriate efforts and approach to deliver its value. A supply chain strategy is the focus of the organization towards the suppliers and customers and maintaining the good relationship towards the operational excellence of the organization. It might involve risks, but the organization should bring the emphasis on the supply chain strategy to guide the organization, at least, to gain competitive advantage.

Works Cited:

Rosenfeld, S.A., Liston, C.D., Kingslow, M.E., & Forman, E.R., (2000) Clusters in Rural Areas: Auto Supply Chains in Tennessee and Houseboat Manufacturers in Kentucky, Accessed 02 Aug 2010, from http://www.rural.org/publications/Rosenfeld00-11.pdf

UPS, (2005) Supply Chain Strategy: The Importance of Aligning Your Strategies, United Parcel Service of America, Inc., Accessed 02 Aug 2010, from http://www.ups-scs.com/solutions/white_papers/wp_supply_chain.pdf

Warehousing Management Skills

Introduction

The organization is very strict in implementing the standards as well as the associated process to emphasize the productivity and performance of each employee. In the attempt of the business leaders to give the adequate solution in the problems related to the internal operations, the warehousing and the applied management seems to be one of the priorities of the organizations in order to align all its operations with the organizational objectives. In this paper, there is an evaluation regarding the warehousing and the management skills. In addition, the common problems that can be found in a warehousing are emphasized and given appropriate strategies to reduce the problems.

Warehousing and Operations

In the area of progress in production, the warehousing activities should be also improved. The corresponding enhancement in these two areas can be linked to the aim of the organization in satisfying their goals in minimizing the costs and increase the profit. Because the intricate activities involved in the warehousing, most of the large organizations experience both traditional and modern problems that can also include the distribution and the processes. Through the use of the concepts and mapping in the warehousing system, the specific action that adds value to the process and increase the efficiency can be identified.

The business leaders should implement the activities in the warehousing according to the appropriate system to have the continuous flow of information and processes. In that way, the beginning and ending of the warehousing operations can be monitored and controlled. The usual activities that involves in the warehousing that are also important in overall operations are the receiving, palletizing, put-away, order picking, order staging and preparation, truck loading, and shipping. In other organizations, these activities are added with other operations in order to gain advantage and ensure that the products are received or delivered with ease.

Existing Problems or Inefficiencies

The existing problems in the organizations involve the space utilization, material handling, and data collection. In a thorough investigation of the problems that may arise in a typical warehousing, there are other challenges that can be recognized such as the labor force and the lack of skills of people or lack of machineries to make the work load efficient. However, the paper will focus on the top three problems that exist in warehousing operations.

Space Utilization – because of extensive research of the organization and with their aim to have good warehousing operations, the leaders often overlook the space that should be utilized. The big and expensive machineries and materials are occupying the spaces which cause the delay and congestion in the process.

Material Handling – most of the materials that an organization uses are delicate and should be properly kept. There are also materials that should be avoided in contact with the heat or rain because it may cause to diminish its quality. If the people do not uses the appropriate methods to keep these materials, the organization might lose the quality on their outputs.

Data Collection – because of the rapid changes and the increase in competition, the data collected by the organizations should be updated. This is also important to track the supplies or products on their logistics method.

Analysis and the Recommendation for Improvement

Based on the three common problems, the paper can show the recommendations that can definitely minimize the risk and, on the other hand, increase the profitability of the business:

1. Follow the warehousing management techniques and control on the inventories and processing of the competitors.

2. The specific technique chosen should be realistic and the standards can ensure that the methods included involve the timeliness and financial success of the organization.

3. The procedures involved should arrive regarding on the organizations priorities. For example the delivery of the perishable products should arrive first than the non-perishable to avoid the consequences on the perishable products.

4. Create a more hassle free-warehousing mapping. Eliminate the areas that doesn’t adds value to the process and yet eating the spaces. The necessary operations should also emphasize to continuously develop the entire process.

5. The people must possess the abilities to determine the lead time, loss factor, decisions, safety, and others.

6. The organizations can reduce the investments on the warehousing operations if the people managed wisely the inventories and reduce the stock-outs.

7. All the people must be align along with the principles of warehousing management and market forecasting to avoid the “panic-buying” and other unnecessary actions due to lack of planning.

Conclusion

It is better if an organization has a lean concept of warehousing operations. This gives advantages to the organization such as the improvement in the processing and tracking. Organizations do not have to create a huge area for warehousing, but should have the strategies in handling and managing the operations.

Works Cited:

Garcia, F.C., (2004) Applying Lean Concepts in a Warehouse Operation, Accessed 03 Aug 2010, from http://www.lean-automation.com/pdf/Applying%20Lean%20Concepts-wp.pdf

Sautter, E., Maltz, A., & Boberg, K., (1999) “A Customer Service Course: Bringing Marketing and Logistics Together”, Journal of Marketing Education, Vol. 21, No. 2.

Kumar, N., (2005) “Cover Story: The Global Retail Challenge”, Business Strategy Review, Spring 2005.