Quality and Supply Chain Management - Essay Example

The knowledge obtained by basic research will be used to solve investments problems. It will be necessary to evaluate production (storage) capability in term of efficiency, planning and control and inspection methods. Also, it will be necessary to evaluate technical capability: the quality of facilities for design and develop­ment, production and testing to see if they could ensure quality of output at all stages of distribution; financial capability - to see how stable they are financially and the credit rating of the company; management capability - to see how efficient are the suppliers adminis­tration systems (Slack et al 2003).

According to current analysis, Canbide’s competitors already have distribution facilities near New York. In order to remain competitive, Canbide has to ‘enter’ this region proposing high quality services and low cost transportation for customers. Similarly, the search for competitive advantage will only be successful if based on a strategy of meeting customer needs more effectively than can competitors. This concept of differential advantage lies at the heart of strategic marketing. Distribution facility near New York will help to keep existing customers and attract new clients.

For Canbide, cost of transportation facilities has a great impact on ‘project’ profitability and liquidity. If a company needs to deliver goods locally, trucks are an excellent mode. Also, it can be used for both long-haul and transcontinental transport. In regions with well-developed highway systems (in this region there are three interstate highways that lead to major population canters), truck freight provides the highest level of accessibility of any mode. It is important to note that trucks are the main transports used by customers.

For this reason, the new facility will help most of them to minimize product transportation (Slack et al