Supply Chain Management - Case Study Example

SUPPLY CHAIN MANAGEMENT Introduction Supply chain management is managerial process that involves movement of goodsfrom a point of production to a point of consumption. In addition, supply chain management entails flow of goods from one point to another, storage of raw materials and work in progress (Henry,para.1-3). Supply chain management further involves some a concepts of activities such as; procurement of raw materials, manufacturing and distribution of finished products to various destinations (Harrison and Hoek, pp.173-177). Therefore, this study aims to provide an insight analysis of a case of Bearing Service Inc as discussed. Analysis of Bearing Service Inc Bearing Service, Inc was launched by Herbert Mann in the year 1943, after identifying a business opportunity in ball bearing production. The company has been in operation for over twenty five years since its inception. Its headquarters are situated in Michigan Monrovia. In addition, the company has displayed tremendous growth in terms of structural growth and increase in sales. For example, Bearing Company started from being a single based business structure that was centralized in Detroit. The company has undergone via great expansion in selling bearing related products in various destinations/locations. Bearing Company Inc is independently managed and has decentralized its operations by establishing four subsidiaries in Michigan and in the United State. In above connection, the company focuses in distributing bearings, seals, linear motion products, power transmission tools and other accessories related to power transmission. Bearing service Inc comprises of more than three hundred product manufactures that supplies material and products that are needed by the customer. However, due to special customers needs, Bearing Service Company Inc may contact other vendors to supply items that are required by the customer? To increase their effectiveness and relevance in the market, Bearing Service Inc provides customers with some basic training concerning their products. For example the company educates their customers on power transmission, linear motion, repair and maintenance among other trainings. Bearing service vision entails providing their clients with great satisfaction by offering them with highly innovative products as well as cultivating long term relationship and responding to any emergencies as soon as they arise. The company received its ISO 9002 Certification the year 1998.This enabled the company to compete with large companies as well ensure that there is continuous improvements. However, the company realized that it was making low returns by entering into large contract and hence, the company decided to identify the key markets where it could excel properly (Bearing Service Inc, pp.1-2). The strength and weakness of Bearing Service Inc may be evaluated via observing the company strategic plans as internal and business external environment. The strength of Bearing service Inc may be observed in the manner in which the company has design responses for handling emerging customers’ needs based on the company plan. The company has further differentiated its products and has been keeping in touch with new innovations. For example the company, it has been reported that the company has embraced innovativeness to cope with globalization unlike other companies in this industry. In addition, bearing company provides basic training to its customers which also form the basis of its strength in the market. The company has well established logistic and inventory management systems that also form the basis of its strength. Among the capabilities of bearing company in respect to inventory management include; Plant and crib surveys, establishment of customers identification numbers, usage evaluation, periodic stock taking as well as establishment of customized parts packaging. This has enabled the Bearing Company to minimize numerous cost such as the cost of bearing service provision, materials handling cost, obsolescence cost to mention just but a few. This has further help bearing Inc company to remain relevant in the market as well as to become very competitive. Unlike any other employer in the industry, Bearing service Inc, select and recruit professional who are creative and innovative on technological matters. In addition, Bearing Company has embraced the aspects of Benchmarking all its service operation. This has also formed the basis of its strength (Bearing Service Inc, pp.3-7). In terms, of weakness, Bearing Company experienced the greatest employee’s turnover rates of 33% during the boom period in the year 1990’s as employees move to other well paying companies. This is because the Bearing Company could not compensate its employees accordingly. For example, the company was unable to provide its employees with child reimbursement remuneration and disability allowance. In addition, Bearing Service Inc was unable to compete effectively with car manufacturing companies as it dint have adequate resources. This also formed the basis of its weakness during this period. Among the competitors of Bearing Service Inc includes; Rockville Ring service Inc, Purvis Industries Inc, Bartlett Bearing Company Inc, Delton Bearing Service Inc and Timken Company. Rockville Ring Service Inc focuses at rebuilding engines as well as provision of bearing services. On the other hand, Purvis Industries Inc is one of the largest distributors of power transmission accessories in the United States; the company was formed in the year 1945. Bartlett Bearing Company Inc is an independent distributor of repair parts for both mechanic and electronic facilities Timken Company has been in the market for over 70 years company and has been reported to be one of the leading distributers in market. Timken Company was established in 1889 and has listed its stocks in the New York Stock exchange. In addition, Timken Company is a global manufacturer and distributer of bearings accessories (McCleave, William and Thomas, pp.74-80). Bearing service Inc has numerous business opportunities within external business environment. For example, the company has been offered ISO certification authority to carry out business operation both locally and internationally. The company may use this opportunity to exploit new market and obtain higher return. However, the company should utilize its planning strength to formulate distribution channels and marketing strategies that might be used its bearing products into the international markets. In addition, Bearing Service Inc should utilize its strong benchmarking strategies to maneuver via international market and counter its weakness of being unable to execute larger contracts (Bearing Service Inc, p1-2). Recommendations/conclusions Therefore, based on the above analysis, the various concepts of supply chain management can be observed as well as how they suit in the case of Bearing Service Inc. In addition, it can be observed that Bearing service Inc had been performing well on its proactive mode of operation. The company has embraced on the differentiation, benchmarking and planning concepts that had formed the basis of its strength. In addition, the company has embraced innovation and customers focus strategy in order to remain competitive. This can be observed through numerous customers and employees trainings that the company had established. Therefore, I would recommend that the company should use all the above mentioned strength to enter international markets and distribute its products. However, proper supply chain and marketing channels should be established. In addition, proper financial planning should be put in place to enable the company do effectively deal with its weakness. Works Cited Bearing Service Inc. About Bearing Company: History.Web.30.11.2013.http://www.bearing service.com/about-us Bearing Service Inc.Modern Distribution Management: Annual Distribution Reports. Web.30.11.2013. . Harrison. A., and Hoek.V.R.Logistic Management and Strategy: Competing Through The Supply Chain. Edinburgh England. Pearson Education Limited.3rd Edition.2008.Print. Henry. Basic Concepts of Supply Chain Management.15.7.2013.Web.30.11.2013. http://www.ecrasia.com /the-basic-concepts-of-supply-chain-management/ McCleave, William R, and Thomas P. Gale. Stand Out from the Competition!: Four Pathways to Differentiate Your Wholesale Distribution Company. Washington, DC: Distribution Research and Education Foundation, 2003. Print. Read More