Importance of Good Planning and Strategies - Essay Example

To solve the problem that was created by Hurricane Katrina, it is important for the Supply Chain Manager to have a comprehensive plan having studied and known the details concerning seasons and the environment in which the Hurricane was expected.

The problem can be solved using various methods that are recommended in the supply chain management field. Using the required measure ensures that the Chain store does not run out of stock even in the time of need in response to the disaster. However, there are measures that may be used to achieve and maintain the flow of business, as usual, these include the make-to-order strategy, make-to-stock, and assemble to order in that sequence. Both the strategies are useful to the supply chain but not all are effective. In the stores, in this case, it is the supply chain that needs a lot for distribution and also needs to take more to consumers. Therefore, make to order strategy is more effective in comparison to other strategies.

In relation to the location of the store or warehouse, the determinant factor is the availability of consumers. There are some questions that the supplies management ought to ask themselves, for example, who are our customers? What do they need? How far is the distance from the store to the manufacturing point? These questions will help in the understanding of some critical issues that may lead to loss of cash through bigger expenditures on transport and other useful activities. However, location sometimes maybe not a problem depending on the product or services that are being produced or distributed to consumers. The rise of technology has enabled the world to be like one marketplace.
In the chain supply, the inventories are more important to the business. They help with checking and keeping the records. The records help the managers to check whether they are making a profit or a loss. It also helps in knowing the rate of output and analyzing the progress of the business. The inventory not only helps the chain supply business but to other businesses too. The research enables the retailer and the seller to find a wholesale location that helps in realizing the objectives. Therefore, product sourcing is conducting thorough and good research to allow the identification of a reliable supplier for the business. This is a process that has a lot of shortcomings, for example, it is difficult to identify a genuine wholesaler who is reliable to the business.