For the last 25 years, many companies have been negatively affected by the failure of their supply chain an aspect that has caused some of these companies to be acquired by their competitors at very low prices. Other failed companies have resulted to loss of a lot of investor’s funds thus resulting to their closure and court litigation as the investors seek for compensation. This paper will discuss common mistakes that are done by the company leading to supply chain disasters. One of the key mistakes that companies make is failure to do an extensive research on the suitability of the technology in improving their supply chains. For example, in its effort to improve production, Foxmeyer failed to research on how effective the new ERP system and the highly automated DC would be. Despite the efforts by the consultant to notify the company management that some areas of the new technology were not properly functioning, no step was taken. That ignorance has also greatly contributed to the supply chain disasters. Lack of undertaking feasibility studies that involves the evaluation of the benefits and costs associated with the supply chains is also a mistake that led to their failure. It is vital to note that before any company invests in new technology or a supply chain, it is essential to calculate the returns that are expected. For example, despite being an experienced manager, Robert Smith, the General Motors CEO failed to evaluate the performance of the robot technology leading to a supply chain problem that entailed loss of billion dollars in the investment (Supply Chain Digest, 2009). Lack of adequate market research is also another mistake that companies have made. Market research is crucial since it allows a company to initiate system that will provide products that will meet ready market. However, some companies such as Webvan, an online grocer invested in automated warehouses that reduced the company capital to a great extent yet the market demand for its products was very low. The same case applied to Cisco. On its part, Cisco, failed to initiate an inventory visibility study as well as adoption of poor market research leading to piles of products that were not demanded in the market. As a result, Cisco wrote down its inventory while the stock decreased by 50%. The company has yet to recover. During the planning stages of the management, most of the companies that faced the supply chain disasters did not skilled man power to undertake the task. As result, the managements were not aware of the repercussion of either adopting new system or even entering new markets. For instance, in its effort to move its production facility from Manila to low costs countries in 1994, Aris Isotoner resulted to reduction of costs by 50% while the Isotoner unit was sold to Totes. A mistake of poor estimation of the number of products and the delivery time is also a major cause of the supply chain disasters. For example, in 1999 Toys R Us.com company failed to realize that its system was not able to produce and deliver thousands of orders to its customers. This created a negative public image even though the company outsourced the supply to the Amazon.com. One of the companies that experienced a notable supply chain disaster was Apple Incorporation. Despite being a market leader in the production and selling of personal computers in 1990s, the company was faced with an issue that made it lose huge market share. In 1995,
Running head: supply chain 26th November 2013 Introduction Local and international companies have taken initiatives to maintain an effective supply chain in order to ensure that their products are appropriately distributed in the market…
A supply chain is as system of organizations, projects, technology, people, information, and resources involved in facilitating the movement of a company’s products and services from their suppliers to their consumers. Therefore, supply chain management is the administration of a system of connected businesses involved in the final provision of product and services packages needed by consumers.
While supply chain management concepts are applied in both service and manufacturing industry, its complexity varies greatly from industry to industry (Ganeshan & Harrison 1995). This report describes the role of Supply Chain Management (SCM) in the success of a business and analyzes the SCM system followed by Dell, Inc.
The supply chain also exists for the customer, as the customer is the one that adds the value to this process. Proper control and management of the supply chain, particularly for organisations operating in the service industry is important as it is responsible for the improved customer experience, reduced inventories, lower operating costs and improved use of fixed assets (Braithwaite 2002).
This layout allows the all-wheel-drive to attain similar fuel consumption compared to a two-wheel-drive model. Comfort on vibration and acoustic are a standard feature normally found in the current luxury models. Finest traction is guaranteed at all times, together with the utmost directional constancy and perfect handling.
The sales of Inditex, the parent company of Zara, the phenomenally successful fashion chain, over its first quarter were 2.22bn (1.7bn). Over the corresponding period Gap - for years the dominant force in global fashion retailing - saw sales of 2.17bn.
The objective of this case study or assignment is to identify and explore the unique selling proposition of the Spanish apparel retailer Zara, which is one of the most profitable garment retailers in the world.
Formulation and synthesis grew 2.9% annually from 1985 to 1998. But the chemical industry needs big capital investments in order to operate a successful business structure. If faces some problems of supply and demand imbalances due to the continuous and semi-continuous manufacturing processes.
Crucial role played by the spare parts for an aircraft’s safe flight comes to the forefront, as we analyse their role by functions and criticality of different spare parts and try to find answers to the problems faced in the
Altera faces the issue of remedying and reconsidering its supply chain management at huge telecom equipment, networking, chipmakers and personal computers manufacturers. This leads to large amounts of inventory write-offs. Majorly this has been caused by
Many leading brands are currently running the fashion industry. Some of them are Zara, H & M and Benetton. In this case study, we have made a comparison of all the operational and supply chain activities of the three fashion brands.
Zara is Apparel or Clothing Company, head
10 pages (2500 words)Case Study
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