Supply Chain Mgmt for Best Buy - Essay Example

Recommendations on Supply Chain Management for Best Buy The global business environment is becoming increasingly competitive and survival of a firm is only possible from multiple approaches which include supply chain management. In that respect, successful acquisition of above average market share and profit by Best buys will enlist the following recommendationsCustomer care services: The contemporary nature of business has shifted from the traditional mode where firms were production focussed to customer focussed.

It is important that Best buys adopt sound customer care policies that seek to solve their diverse problems as the first step towards boosting its competitive scale within the industry. This may be achieved by addressing the customer issues relating to the size, specification and time of demand so that they meet their desires with convenience. This is possible by introducing online customer care services where customers can make enquiries from their homes and get appropriate feedback. This approach will help the company in tracking the behaviour trend of the clients in terms of needs.

In-depth and long term relationship with the suppliers: Due to the prevailing global economic uncertainties, it would be safe for Best buy to adopt positive working relationship with the suppliers to track their ability in terms of reliable inventory stocking and ensuring that they have efficient modes of replenishing its stock. Deeper understanding of the supplier will help the firm to formulate and establish supply chain management system that suites the suppliers policies and system and this goes down to cut costs, improve efficiency and encourage innovation.

Best buys should adopt a partnership policy that proposes use of same technology for easy co-ordination of supply activities in response to the market demand to avoid customer disappointment which will translate to financial and social cost to the firm.Internal control measures: Best buys need to consider developing sound internal control system that would give guideline on how to achieve its set goals. It is important that tit observe the minimal use of pricing as a competitive strategy but rather adopt other approaches that would give it optimal costing and revenues.

To achieve this, they need to develop a system that will help all the management teams to retrieve any information and liaise with both suppliers and distributors. This would help in maintaining continuous flow of inventory thereby eliminating supply cut-off to the advantage of its online competitors like Amazon and EBay.Emphasis on IT technology :Best buys need to invest on technology as one of the points where it faces the fiercest competition from other competitors. This can be achieved by developing system that links the marketers and suppliers in monitoring the market trend and matching this with the supply chain.

This would enlist the use of RFID which is more efficient in provision of reliable information regarding the inventory, product flows and delivery to clients. Use of integrated IT system like Retek, Oracles financial package and Oracles financial package are all important technological applications that will boost accuracy and reliability in terms of transactions and demand-planning logistics. Best buys need to improve its global visibility through e-commerce to manage its operations and track its customer’s diverse needs across the geographically dispersed market.

For an efficient supply chain management, Best buys need to adopt EDI document verification from international carriers, transport authorities and customs authorities’ compliance. Supply-chain management system needs to be developed for efficient and reliable coordination of activities at an optimal cost. This will include; tracking shipments, ordering and inventory freight to the final distribution center.Push and pull mix: The ever changing market and rising competition is almost eliminating the effectiveness of push based supply.

On the other side pull based approach is desirable but is not able to seal all the efficiency gaps. In that respect, Best buys need to adopt the blend of the two to ensure reduced inventory cost and lead time for delivery costs.ReferencesDam, J. B., & Skjøtt-Larsen, T. (2005). Supply chain management: In theory and practice. Copenhagen: Business School Press.Ivanov, D., & Sokolov, B. V. (2010). Adaptive supply chain management. London: Springer.Leeman, J. (2010). Supply Chain Management: Fast, flexible supply chains in manufacturing and retailing.

Düsseldorf: Institute for Business Process Management.