Work Place Resource - Case Study Example

Executive Summary A good Supply chain management system is extremely important for organizations which manufacture their own goods. With international sourcing and international sales, the scope and complexity of supply chains can be significant. The entire process is based on the needs of their clientele. The clients want their consignment to be delivered on time. The aim of Supply chain management is to reduce surplus inventory and needless expenditures. The Supply chain management must work at all levels, strategically and tactically to be effective. This effectiveness will have a positive effect on the amount of orders the organization will get. Therefore, this paper will be based on an in-depth analysis of Catwalk Styles supply chain management system. Catwalk style is a garment manufacturing company in UK; Catwalk Styles is an extremely vibrant company which offers top quality manufacturing of ladies attire to clients all over the United Kingdom. The fact that they have to fulfil the deliveries of their clientele on time thus they require a proper supply chain system. This paper will also analyze Catwalk style entire supply chain system, the present method which Catwalk Styles is using and the methods which it can use will also be analyzed. Inorder to improve their system Recommendations will be given at the end of the paper. Running head: WORK PLACE RESOURCE Work Place Resource [Writer’s name] [Institution’s name] Work Place Resource Company background Catwalk style is a garment manufacturing company in UK; Catwalk Styles is an extremely vibrant company which offers top quality manufacturing of ladies attire to clients all over the United Kingdom. It is in Chadwell Heath . And it extremely experience in this field of work. It has an approximately thirty years of experience. Catwalk styles delivers perfectly manufactured ladies garments to it’s clients, it’s garments are designed to fulfil all the requirements of their clientele . It’s workshop had the latest machinery which fulfil all the international requirements , they even have highly qualified staff , and thus the clientele get a good stock for a reasonable price. The fact that they have to fulfil the deliveries of their clientele on time thus they require a proper supply chain system. Recently , in order to ensure timely delivery they are working to improve their present system , Current method being used Currently catwalk styles are giving a lot of attention to all three flow concepts in supply chain management. The Top Flow The Merchandise and associated services which come after producing it has always been an important element for logistics and till now it plays an important role in supply chain management. They utilize this concept as because of this their clientele expect that their consignment w ill be delivery to them in a timely manner. (Langley, Coyle, Gibson, Novack, & Bardi, 2008). Information Flow The second flow indicated is the information flow, which has become an extremely important factor for success in the supply chain system of Catwalk styles. Traditionally, it has been viewed as flowing in the opposite direction of products, that is, from the market/customer to the wholesalers, manufacturers and vendors. As the information about the demand regarding the garments of Catwalk styles flows back from the marketplace, the more accurate and real-time it is, the better the inventory can be managed. Their forward information flow takes many forms such as advance shipment notices, order status information, inventory availability information, and so on. Financial flow Last but not least, is the financial flow. Reorganization of the financial flow may give Catwalk styles opportunities to improve their entire supply chain, and earn better profits. The forward flow originates from suppliers with the form of credits, consignments, payment terms and invoices. The backward financial flow consists of consignments and payments for goods and services received. And thus it holds and important position in the Catwalk style’s supply chain system Sourcing Methods Supply chain management is described as the integrated management of business links, of information flows and of people. Close attention is paid to the entire chain from the first step raw material supply, production , and supply to client . For Catwalk styles operations are the heart of the supply process, and supply is not the sole criterion of competitive advantage, but it performs a crucial role in support of other strategies. Investments and longer-term developments in manufacturing are examined in relation to changes in business strategy. Manage inventory investment in the chain Catwalk styles should manage their inventory investment in the chain Each constituent of Catwalk styles supply chain desires to hold no more than its fair share of inventory. For instance, the distributor desires fewer inventories and would like to see inventory held by the manufacturer. This system will allow Catwalk styles inventory to be sent to the vendor and thus it lowers both the investment as well as threat for the members involved in the process (Donovan, 1997; Mayer, 1996). Like all product life cycles these day even Catwalk styles are shortening, and thus this method process to be a very important method . Cycle times of Catwalk styles will reduce due to an immediate response in the inventory system. This system improves customer service as Catwalk styles clientele will get the right amount of garments, it will also help Catwalk styles in improving their manufacturing inventory .Build A Competitive Advantage for the Channel Catwalk styles desire achieve and maintain a good position in the industry cannot be easily fulfilled. A lot of competitive pressures may compel Catwalk styles to remain well-organized. Supply chain management may be considered as a competitive advantage for Catwalk styles as they use their resources to implement the method. It gives Catwalk styles a powerful position in the channel as it due to this it is well known in the industry. The fact that Catwalk styles may have a competitive advantage in the industry also means that it will have to have strong support from their management for issues like decreased costs, waste management, and better profits. If Catwalk styles want to lessen the costs of their buyers and remove all labour costs, then these cost reducing strategies will give Catwalk styles a competitive efficiency of the whole supply chain. Catwalk styles will have to be market channel focused. Catwalk styles will have to will have to give their supply chain managers authority to pin point precisely how they require their buyers and suppliers to deliver and receive the goods . (Magretta, 1998; Robinson 1998; Ross, 1996). Increase Customer Responsiveness To stay on top of the market, a lot of organizations have to pay complete attention on their supply chain and improve their customer service by giving their clientele timely develop of their consignment. The capability to provide their clientele with top class quality service will improve their supply chain system . If Catwalk styles improves their relationship with a supplier it will eventually result in confidence and the capability to be customer focused and intimate with their clientele (Willis 1995). .Introduce Supply Chain Management Solutions and Enabling Information Technology Information is very important to successfully manage the entire supply chain. An enhanced information technology system which may be user friendly for partners of Catwalk styles in the channel , they will also have accessibility to general databases that are constantly updated. Procurement Procurement is an extremely vital process for Catwalk styles, it will utilize to have the procurement procedure. This process is associated to suppliers, as well as there are a lot of relationships will develop among Catwalk styles their textile suppliers . Thus their Supply Chain Manager, will have to maintain a good relationship amongst themselves and their clientele who purchase their goods. They have to do this so that there goods are of top quality and fulfil the requirements of the customer. At times, the present suppliers have a difficulty is supplying the kind of textile they need for the newly developed products, so the Catwalk styles will need look for a new supplier, and this situation means that Catwalk styles will have to consider a supplier evaluation and selection process. A good new supplier will give the firm many advantages such as lower cost, higher quality the interorganisational relationships are very important in the supplier evaluation and selection process. supplier evaluation and selection process This is extremely important Catwalk styles because if their suppliers are weak then it will also effect their production and the entire supply chain management. A new supplier evaluation and selection process should measure a lot of factors for Catwalk styles . According to Stock and Lambert (2001), there are 12 keys should be measured: 1. Price effectiveness, this key is used to determine the price in procurement; 2. Cost savings, this key is used to make sure the cost is as low as possible; 3. Workload, which is a measurement of workload of new imported, current and completed; 4. Administration and Control; 5. Efficiency, this key presents the number of inputs related to the number of outputs; 6. Vendor quality and delivery, it will measure the percentage of accepted purchasing items and the quality of delivery; 7. Material Flow Control; 8. Regulatory, societal, and environmental measures; 9. Procurement planning and research; 10. Competition; 11. Inventory; 12. Transportation. In these 12 keys, the most important keys for Catwalk styles are the price effectiveness, cost savings and vendor quality and delivery. Because these 3 keys directly related to the cost of procurement, which is the thing that every supply chain manager should pay the most attention on. When Catwalk styles starts to select a new supplier, the first thing that will be considered is what the firm need to buy, and whether the new supplier supply it or not. Then the price and cost should be considered, the firm surely wants a good price and low cost. After these, the rest of the keys have to be measured. Selecting a new supplier is a very important process Catwalk styles , and an excellent decision will bring the firm more profit and opportunity in competition. Competition; 11. Inventory; 12. Transportation. In these 12 keys, k the most important keys for Catwalk styles are the price effectiveness, cost savings and vendor quality and delivery. Because these 3 keys directly related to the cost of procurement, which is the thing that Catwalk styles should pay the most attention on. When the supply chain manager start to select a new supplier, the first thing that will be considered is what the firm need to buy, and whether the new supplier supply it or not. Then the price and cost should be considered, the firm surely wants a good price and low cost. After these, the rest of the keys have to be measured. Selecting a new supplier is a very important process for a firm, and an excellent decision will bring the firm more profit and opportunity in competition. Selection of suppliers will become more critical to Catwalk styles in the future. (Gattorna, 2003) Literature related to of sourcing methods Adopting the above mentioned supply chain method requires that Catwalk styles take a long-term view and have an extensive focus, on all the channels that are employed in the total transformation process to create a productive and reliable supply chain network system. It also requires commitment from senior management. Catwalk styles may have to re-think how business is done at every level within and outside the organization. By evaluating and mapping a specific supply chain, a company is able to find and reduce system redundancies while improving reliability and flexibility of a system. SCM needs to begin by investigating each function a department handles and breaking it down if necessary. (Tummala etal 2006) Despite the challenges that are created, developing an effective and efficient supply chain can become a core competency or even a competitive advantage. A core competency is any function, which a firm does well at performing. On the other hand, a competitive advantage is a function that is performed well and is unique. Not surprisingly, most of the solutions and services available in the market tend to focus on the big players leaving out small and medium enterprises (SMEs) who anyway start with a disadvantage due to their inherent constraints – finance, infrastructure, human resources among others. Consequently, Catwalk styles have been rather slow (and sometimes reluctant) to adopt and adapt SCM to their businesses. However, various factors related to globalization have now rendered implementation of SCM an imperative event to Catwalk styles Catwalk styles will have to select a good method form the above mentioned ones, as they are the best, the implementation of all the above mentioned methods will be a long-term process. Neither of the methods can give Catwalk styles over night profits. Ample time is needed for the positive outcomes supply chain method. Benefits from implementation of the above mentioned supply chain management methods are as follows: :•Automation of processes: reducing errors, obtaining information on time • Catwalk styles will be able to implement their operations in the best locations, even if the customers are of an over seas. •By concentrating operations in large facilities, Catwalk styles can get economies of scale •Standardization of production: advanced quality control, shorter production period, increasing effectiveness • Catwalk styles will not have to store countless stocks of finished garments as these methods will help them to take care of issues regarding their own suppliers of fabric for their production of garments and thus improve their delivery time. •Wholesalers place large orders and Catwalk styles will be able to pass on lower unit costs in price discounts • Catwalk styles will be able to deliver their stock on time; apart from they will even be able to give good quality in very little time As Catwalk styles are near to retailers who purchase their garments and thus the above mentioned methods will help in their entire supply chain process. • If the above mentioned methods are used then recovery of Catwalk styles purchase process will result shorter loading-unloading period, faster ordering process, less labour costs • An improved system of supply chain management by the before mentioned methods will cause Retailers purchase less s from other companies as Catwalk styles will be able to supply reliable deliveries An improved supply chain management system will help Catwalk styles to improve their small operations, thus providing the customers with a responsive service •Transport for Catwalk styles will be simpler due to the different method mentioned above; it will even enable them to supply larger deliveries. • Catwalk styles will be able to improve their other system of operations as well The second major method which Catwalk styles can implement is the demand for ever-greater levels of responsiveness and shorter defined cycle times for deliveries of high-quality goods and services. All functions have a part to play in the development of strategy and manufacturing should be involved as well. Manufacturing is seen as a strategic resource and development of capabilities is important. This may open new market opportunities for Catwalk styles. As a result, in Catwalk styles, this seeks to play one of two distinct roles: a)To establish competitive advantage by means of unique logistic performance b) To achieve higher efficiency through cost leadership the above mentioned method becomes even more important for manufacturing companies like Catwalk styles, when they are competing in the markets where are sensitive to logistics cost or performance. And the management must balance supply chain effectiveness (the quality of the products) against efficiency (low cost). Another important method in supply chain management is the recovery, recycling, or reuse of products from the end user after they have reached the end of their useful life. Catwalk styles can extend their distribution channels ahead of the end customer to consist of the acceptance and 'disassembly' of their left over garments when they need to reuse the material. Catwalk styles should think about which relationship is most suitable to develop with their clientele . According to Gattorna and Walters (1996), the successful organizational relationships need eight criteria: Individual excellence, Importance, Interdependence, Investment, Information, Integration, Institutionalization, and Integrity. Recommendations The following are recommendation for Catwalk styles to improve their supply chain management system. It is recommended that Catwalk styles should start evaluating the possible risks in their supply chain system and start establishing both practical business plans and the costs to guarantee competitive as well as reliable quality. Apart from this they must also have an internal communication system so that they can gain up to date information regarding their supply. Catwalk styles should consider using a real-time logistics as it will give then an update the transport status of the delivery. They must also update their supply chain system in such a manner that consists of the latest information technology required for an efficient supply chain system. Catwalk styles must also study other supply chain management systems so that they can find out what flaws are present in their system. . Catwalk styles have to think up innovative ideas for their supply chain management systems .Speed is something important in the garments industry. Thus to increase their speed of execution and production Cat walk Styles should use a collaborative system in which the logistics, production and partners all are involved. To be successful, Catwalk Styles need to be in continuous contact with trading partners. Catwalk styles have to pay close attention to their supply plan; estimated cost, and automate their procurement system. Incorporating all elements in their supply chain can give Catwalk styles the competitive lead they require. This process incorporating all elements helps in the decision-making process and removes all the barriers in the path of their success. Conclusions Supply chain management is a system which helps every organization to produce and delivery goods in a timely manner, thus reducing their costs Catwalk styles like many organizations need to pay close attention to their supply chain management system if they wants a competitive edge. The above analysis gives clear view of what catwalk styles needs to implement it provide it’s clientele with a timely delivery and thus prefect it’s supply chain system. Supply chain management is not an easy job , however it is an extremely important task . The garment industry in which Catwalk styles wants a leading edge is a market in which supply chain management plays an important role. Each and every consignment has to have a timely delivery. Suppliers and buyers both must benefit from a supply chain system. Thus to conclude it can be said that Catwalk styles has the capability to have a competitive edge if it continuously improves it’s supply chain system. References Donovan, M. R (1997), "Reduce inventories and improve business performance", Midrange EEP, 62-4 Gattorna, J.L. (2003). Gower handbook of supply chain management (5th Ed.). Albershot, England: Gower Publishing Limited Gattorna, J.L., Walters, D.W. (1996). Managing the supply chain. New York, America: Palgrave K. Willis (1995), Customer Delight and Demand Management: Can They Be Integrated? Conference Proceedings, American Production and Inventory Control Society, Langley J., Coyle J., Gibson B., Novack R., Bardi E. (2008); Managing Supply Chains, A Logistics Approach , south western publishers Magretta, J., 1998, "Fast, global, and entrepreneurial: supply chain management, Hong Kong style: an interview with Victor Fung", Harvard Business Review, 103-14 Mayer, J.H.(1996); Supply-chain tools cut inventory fat. Source, Software Magazine archive. Volume 16 Robinson, T (1998), "Weaving a supply chain Web", Managing Automation, pp.22-8 Stock, J.R. & Lambert, D.M. (2001); Strategic logistics management (4th Ed.). New York, America: McGraw-Hill Tummala, V.M. Rao; Phillips, Cheryl L.M.; Johnson, Melanie.(1996); Supply Chain Management: An International Journal, Volume 11, Number 2, Read More