Supply Performance - Essay Example

A lot of cooperation among various departments, suppliers and customers helps in achieving the desired performance level (Case Study). It is very crucial to manage the procurement internally to avoid huge stock of unused material and final products. Optimisation can be realised only through integrated management of supply side. Other than supply of final products, supply of information not only within the company but all members of the supply chain are equally crucial in attaining required performance as production and distribution demands an integrated approach in decision making on stock maintenance and price determination (Kannegiesser et al. 2007). Environment at the retail operations of CUERO Ltd.

was not conducive. The workforce at retail stores was at logger heads with marketing staff because they were not informed about the decisions taken at the marketing end. There was no procedure to share information between retail and marketing department. Lack of information of company’s day-to-day functions generated a feeling of left cornered by the retail staff at 60 sites of the company. They were always unaware of the happenings on sales front about the likings of customers. As a result retail employees were unable to secure replenishment of such shoes that were in great demand and needed sufficient stock to offer at their retail outlets.

Although most of the retail shops were performing above satisfactory level but some retail shops were running in deficit. Huge purchases were being procured from sources outside the UK. Such things were not publicized that the company has outsourced manufacturing or buying from other sources and branding them as its own (Case Study). The Supply chain at the promotions division, Imberholme, made direct sales of shoes manufactured at the Pacific Rim and shifted to a central stock keeping location at Imberholme in the South of England.

Such promotion sales were priced on the market prevalent competitive rates, delivered only for large quantities on strict terms and conditions regarding order cancellation, payment, pricing and not compensating the supplier for such orders that were not trendy enough. This behaviour was due to abundance of suppliers, which was a reason of profit generation as well but the company suffered on other counts as quality of end products was compromising, delivery was delayed, required order quantities were not delivered and customers were not happy (Case Study).

Causes of business success were attributed to reduction in prices and punctuality in operations. At the warehouse end, things worked properly but there was no management on returned products; replacements were shipped free of cost resulting in difference between the cost of providing the replacement facility. Information exchange between Imberholme and the factory locations was negligible and the management was least worrisome on the working conditions at the supply side (Case Study). Thus, it can be derived from that in stead of following a set of approaches to effectively integrate supply, manufacturing, warehousing and customers to produce exact quantity and supply to the desired destination and at the exact time to reduce costs, the CUERO Ltd.

was doing the reverse at Imberholme. Good thing was that all shops were located at commercially viable locations where sales realisation was easy besides a number of accessories were also supplied in company shops such as leather handbags,