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Documente Cultură
Company
Supply Chain Case Study
POINT OF VIEW
2. OBSOLETE PRODUCTS
Keeping excess inventories on hand in its warehouses is
very costly and since Somerset redesigns its product lines
so frequently a real problem of produce obsolescence
arises if products remain in inventory very long.
3. COST
Somerset has also been experiencing quality problems. The
Chinese suppliers employ quality auditors who rotate among
plants every few weeks to perform quality control tests and
monitor the manufacturing process for several days before
visiting another plant. Store and individual customer
complaints have forced Somerset to inspect virtually every
piece of furniture it receives from overseas before
forwarding it to stores.
4. QUALITY
In some instances, customers have complained that tables
and chairs creak noisily during use. Somerset subsequently
discovered that creaking was caused by humidity
differences between the locations of the Chinese plants
and the geographic areas in the United States where their
furniture is sold.
Replacement parts (like cabinet doors or table legs) are
difficult to secure because the Chinese suppliers will only
agree to provide replacement parts for the product lines
currently in production.
5. VENDOR MANAGEMENT
Somerset provides a one year warranty on its furniture,
which means that they often need parts for a product no
longer being produced. Even when replacement parts
were available, it took long to get them from the supplier
in order to provide timely customer service.
ALTERNATIVE SOLUTIONS
STRATEGIC SOLUTION
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.
1. Performance Management
2. Cost-Benefit Evaluation Process
3. Keeping Communication with the Partners
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.