i need help with this homework before 4pm. any help will be appreciated, thanks
ID: 421580 • Letter: I
Question
i need help with this homework before 4pm. any help will be appreciated, thanks in advance.
10. Explain how the global supply chain functions of (a) logistics and (b) purchasing can be used to strategically leverage the global supply chains for a manufacturing company producing mobile phones. 11. What are the strategic objectives of the production and logistics function? manager of a food products company that is considering entering . retailers and the 12. You are the marketing Indian market. The retail system in India tends to be very fragmented. Also wholesalers tend to have long-term ties with Indian food companies; these ties make a to distribution channels difficult. What distribution chanel/str company to pursue? Why? ccess ategy would you advise tExplanation / Answer
10) Utilisation of strategy seems to be all pervasive in the economic environment today, therefore compensation management is not untouched by strategizing, resulting in all processes of an organisation becoming dynamic, and therefore, demanding constant control and monitoring. Purchasing is a major input cost for any organisation, therefore, adopting a viable strategy for ensuring that value received is commensurate to input cost and optimal for the given cost, through adoption of suitable procurement strategies. The idea behind utilisation of purchasing strategies is to ensure that all purchases are cost effective and through vendors who are extremely efficient and dependable, with regard to quality of the goods, as well as, delivery time. These are the two most important factors, considering that quality and lead time both directly impact production and supply, as well as, customer satisfaction through product quality.
Most purchasing strategies are based around decisions regarding savings on input course as well as, procuring high quality material. Centralised purchasing strategy reduces input cost of transportation by focusing on purchases from vendors, within a concentrated location. Companies may also decide to implement the single vendor procurement strategy provided the vendor offers excellent quality, delivery, as well as, other benefits in the form of credit facility returns. The strategy however always carries a risk factor being dependent on a single supply source. Another strategy utilised by many companies is implementing a purchasing cycle whereby procurement is through group of vendors with orders being placed with each vendor, in a cyclical manner, which is preset. They mostly may outsource procurement for I volume purchases. Procurement options are the preferred strategy for companies which require labour other services for short term projects. This mode of procurement is also utilised for subcontracting projects, ensures excellent pricing levels are availed due to its inherent competitive nature, involving bidding.
There are certain core principles which form part of purchasing strategy within almost every organisation, due consideration is awarded to these factors to arrive at the best procurement strategy suitable for the organisation. Total quality methods and analysis of a vendor through utilisation of this ensures that the quality of the product constantly improves as well as service with no place for errors. A supplier who uses tools such as Six Sigma, definitely passes the total quality method test. Every company attempts to optimise the supply by selecting the right mix of vendors, which ensures procurement is at optimal cost with guarantee of quality and minimum risk of deviation in quality or delivery. This is achieved through constant monitoring and controls, by rooting out suppliers unable to meet quality requirements. Given the fact that the entire business of a company rests largely upon quality material being available in time, control and monitoring in the form of risk management becomes essential. Just like businesses even procurement has gone global with excellent advantages, but also largely increasing the risk in the form of disasters as well as various external factors which may impact cost, negating the advantage gained from low purchase pricing from countries such as China and India. Some companies who are dependent on single supplier, due to the input material being scarce or simple convenience, right to assist the window company by offering it complete support to achieve the standards of quality and service required by the company. It works like a kind of strategic Alliance whereby both the supplier, as well as the purchaser, benefit from implementation of processes that optimise production. Considering globalisation of businesses most large corporations have understood they social responsibility and adopted green initiatives, in every possible business process. Procurement is a major department for application of green initiative as utilisation of recyclable products, as well as promoting products manufactured from reusable and recyclables material, goes a long way in creating a positive image of the company as being socially responsible. Every company will identify purchasing strategies that ensure minimum cost and maximum quality with perfect delivery schedule, resulting in products that have enough value to create excellent profits.
Purchasing strategies differ essentially from supply chain management strategies, as the very goal that is to be achieved is different. The core aim of purchasing strategy is to optimise procurement through minimising input cost while ensuring material quality and negating risk associated with deviation in quality and lead time. The central aim of supply chain management strategy is to identify the customer requirement and implement processes required to satisfy adequately a customer's need leading to satisfaction of these needs, greater demand for the product, and finally maximisation of profits. Therefore purchasing strategy has as its main focus optimisation of input required to create the best possible product at a given cost, where as supply chain management has as its main focus, optimizing output to ensure it perfectly meets customer requirements in order to maximize demand and profitability.
11) In business terminology Logistics denotes the movement of resources along the supply chain from point of origin the point of consumption to fulfill requirements of consumers or corporations. This also includes storage at the desired destination until consumption. Therefore, it is very important that Logistics be closely monitored and controlled considering that it is a major component of the supply chain and can impact production and consumption as it controls deliverables at both ends. Logistics needs to be thoroughly analysed to enable perfect Planning and development of a strategy, which enables immediate control measures in case of deviations. Being an important process is largely impacts demand and supply through production and delivery it has to be critically managed as a sensitive process. It is also important to budget logistics adequately as input costs for the process are high and adoption of the perfect strategy, for the given products and Company can greatly reduced related costs, through minimising wastages. The just in time inventory system is an excellent example of one such strategy. The major objective of the logistics function is to ensure proper and timely flow of resources within the origin and destination perfectly connecting all relevant points. Strategic management insurance that this entire process close smoothly with minimum input generating maximum output for the given level of activity.
Production is the process whereby a product is manufactured to input of various components raw materials. The input may be composed of intangible as well as tangible material to create the output. Intangibles are mostly in the form of information knowledge and ideas which go into producing goods or other outputs. The production process is an important function of every business which is into manufacturing of goods requiring strategic planning and management as it is the central activity around which all other processes are planned. Production requires to be monitored and controlled as it is always based on stringent output objectives to be achieved as well as minimization of input costs through optimal utilisation of all resources. Production is very sensitive as the quality of the product decides the success of the Enterprise. It is essential to adopt Six Sigma for quality control within production as perfect planning and execution for continuous monitoring control and management of the production process is essential. Efficient utilisation of all available resources to generate a quality product through maximization of output and reduction of wastages as well as all input cost can serve to streamline the production process.
12) Most distribution models in India maybe based on various intermediaries existing between the manufacturing company and the end customer. This results in additional identities in the supply chain that exist in the country. Another consideration is because of the business model which is followed, where relationships play an important part and even better and more lucrative suppliers maybe overlooked to maintain existing relationships with the present suppliers. Another feature peculiar to Indian distribution channels is the multiple roles a single entity may play of being a distributor as well as a wholesaler, or a wholesaler as well as a retailer. Given the fact that India is a vast country with very diverse cultural and social norms across its length and breadth, the food preferences can vary greatly. Therefore comma I would identify the area where the food product would have maximum demand through analysis of data of companies marketing similar products. The area with highest demand would be the initial entry point for the product. Given the fact that the top 15 cities in India account for almost 70% of sales of major products I would focus song expansion through entry into all these cities gradually. I would utilise channel partners effectively to ensure maximum outreach, with the advantage of availing access to the market share these distributors already hold. I would also developed an excellent and effective sales team which would be utilised educating and training the channel partners as well as meeting sales targets especially management of key accounts. The entire process would be dynamic and ensure constant monitoring, modification and replanning as and when required to ensure the long term and short term goals are being achieved. The monitoring of performance of all the channel partners and ensuring optimal performance of the partners through strategic Alliance management by creating valuable relationships which add to the strength of the organisation in the long term and to ensure optimal performance as well as, achievement of organisations target.
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