Strategic Supply Chain Management - Essay Example

Strategic Supply Chain Management For a company of MultiChem Ltd’s stature, it is very important that it understands what it basically wants from themarkets that it operates within. The top management must find out the exact reasons for the business to be in operation and then discern the fact that whether or not MultiChem Ltd has lived up to the objectives, mission and vision statements that were drafted at the time of launching this laboratory. Ever since it kicked off its working basis in the year 1955, MultiChem Ltd has only grown – grown to such magnanimous proportions that it seems inadequate at times to comprehend the exact manner of its basis. This has put nearly everyone’s job at a risk. No one knows for certainty how they will fare in the coming times or how the business will shape up due to its expanding horizons, changing market dynamics, economic upheavals, top management’s cozy attitude and so on. MultiChem Ltd might just hit the doldrums if it continues on this wave pattern and the laidback attitude that it has had for the past few years would not serve any real purpose behind its foundation as a laboratory producing small batches of chemicals for educational establishments, hospitals and private organizations. The tilt for bringing out the value proposition for the esteemed clients has started to change and that too in a very negative manner. The company has lost focus and just does not know what it wants to achieve and that too in unimaginable and non-calculated capacity. There is a great deal of soul searching which needs to be done if the results have to be positive by any stretch of imagination. MultiChem Ltd should remember the fact that it became a profitable business because it disseminated itself from the companies that produced large batches of chemicals and thus MultiChem Ltd was the only one within Central Europe which catered to the markets when the talk went out loud regarding the acquisition of small scale chemical batches. There was no other player in the market as such and if any cropped up on the scene, MultiChem Ltd had the funds and resources to buy out those organizations in a quick manner. This made the task of MultiChem Ltd pretty easy since it found out that the monopolizing factor within its business regimes has stayed for a long time and yet a sense of complacency made its way within the supply chain domains – indeed a quick recipe for disaster as far as MultiChem Ltd was concerned. The troubles started and that too from different angles. The focus was just not there and MultiChem Ltd knew something was horribly wrong within its supply chain regimes. It needed to make amends before the company could be swapped off the ground and hence earnest efforts were needed by nearly one and all. However the role of top management was one which required more seriousness than anyone else. It needed to stand up and get its message across in a clear and lucid way. One should believe that the company was losing out on its key strengths than any other task imaginable. The pertinent role of MultiChem Ltd was to deluver to the relevant markets its unique selling proposition, which no other company did – small batches of chemicals. This was because other organizations focused more on the larger production levels as they had economies of scale and scope within their ranks and hence it would have been a foolish act to produce small scale quantities for the clients due to cost factors, manpower and a host of other issues. MultiChem Ltd had the edge as far as having its own niche is concerned and one should believe that MultiChem Ltd had a fairly good idea that it was doing pretty well within the markets that it operated. Also its reputation grew at a steady pace and the manner under which it devised the health and safety regulations for the customers was a step in the right direction by MultiChem Ltd. When they expanded towards UK and Scandinavian countries, the old and loyal customers of MultiChem Ltd had to bear the brunt since the supply chain cycle slowed down immensely and this indeed was one factor that had immediate effects on the customers. The basic philosophy of MultiChem Ltd started to get hidden during this course of exploring new markets and breaking new grounds. There was a sudden upsurge within the company to get out of its folds and get to the markets which have never been served by MultiChem Ltd in essence. It wanted to grow and that too in a very desperate manner. It started to care less about the customers and clients already under its hold yet its focus was on understanding the psyche of the new markets where such a service of small batches of chemicals had never been catered to. There was a complete shift in the philosophy of the organization and for that it had to bear heavy losses later on. The slowness within the order placement and its eventual delivery to the customers meant that there were customers who did not quite like the idea of MultiChem Ltd being late on its part and that too on a consistent basis. At times, there were containers which were empty and yet delivered to the clients, much to their dismay. This demanded serious thought and unity of purpose on the agenda of the top management within MultiChem Ltd but for some reason their focus was firmly placed on doing something new and breaking the grounds which had never been explored before. The aspect of globalization came into the fray all of a sudden. Since there were litigations in the wake of this phenomenon, MultiChem Ltd transformed itself into a sourcing and redistribution company as well. It wanted to go head on with the idea of competing within the already present players within the Indian and Chinese markets and that meant that the company is ready for a full throttle and aggressive drive on its part. MultiChem Ltd knew way too well that it needed to do something extra and this determination needed to come from within the company’s basis since these markets were big and offered huge amounts of potential for the organization in essence. Globalization helped MultiChem Ltd in a way that the small competitors gave into the pressure that was exerted by MultiChem Ltd but what this also meant was the fact that MultiChem Ltd now needed to step up its activities in a positive and more vibrant fashion. It needed to strengthen its supply chain regimes so that processes could be fastened up and hence the agony that the clients were facing needed to be made minimal. The manner in which MultiChem Ltd had to take care of all these aspects was of paramount significance for it and MultiChem Ltd knew that the time had come to make it mark in a big way. Another point of essence was in the fact that the smaller companies had niche markets of their own and this meant that MultiChem Ltd needed to do the extra effort to take care of those respective markets, which indeed meant that the supply chain was put under further tests and proactive attitude needed to be the order of the day. A consistent approach at making the customers understand that MultiChem Ltd has been founded to serve their purpose alone was significant without any shadow of a doubt. Coming towards the Information Technology tenets of MultiChem Ltd’s operations in foreign territories, it was deemed as quintessential to make use of the very same amongst the foreign locations and the laboratory within Belgium so that order placement and the eventual delivery process could be made quicker time and time again. Efforts were made to have quicker turnaround times and not what were experienced during the expansion of business within MultiChem Ltd’s regimes at the time. There was a need to understand the basic shortcomings involved with the supply chain ranks of MultiChem Ltd and to address the very same meant that the organization was serious on plugging the gaps that had arisen with the passage of time. One must understand that the role of IT within MultiChem Ltd’s working regimes was and is very important right from the very beginning. This is because as was seen within the production department, IT cut down processing times by a fair amount and also some jobs were made redundant which meant that the company could save on its fixed expenses. This would eventually benefit MultiChem Ltd in the long run and was quite a successful step taken by the people at the helm of affairs. The change environment within the business was a positive aspect but it needed to be seen in the light of cutting down on costs whilst being in line with the basic objectives and mission and vision philosophies of MultiChem Ltd. There was no role of changing business without any reason whatsoever and hence the managing director needed to get his act together and do the very best so as to take the business at an upper echelon within the relevant chemical production industry. The competition with the large scale producers of chemicals was perhaps not a viable exercise since it was a wholly different market altogether and MultiChem Ltd as a small scale producer should not have delved into such a territory in the first place. There was no problem with the expansion of the business within the different locations of the world and reaching out to newer markets and clients was just a step that would have come with the passage of time. However what was really important was the fact that MultiChem Ltd understood its pertinent role at satisfying its already established clientele and not to let them down at any cost whatsoever. (Author Unknown, 2007) One must comprehend here that outsourcing was significant since it cut down on costs drastically as well as made life easier for MultiChem Ltd. This was because the respective office locations had ease of order placement, order delivery, production matters and so on. All these aspects were being taken care of by the outsourced units and hence no litigations resulted due to the very same. However outsourcing brought with it a sense of peril as well. This meant that corporate culture and the basic philosophy as taught by the parent organization at the Belgium location should never be compromised upon at the different locations where the business was being expanded upon. The outsourced centers and units needed to align their strategies, activities, processes and tasks in line with the already established code of MultiChem Ltd and must not stray from this path of action at any cost. The top management needed to get its act together and tell the outsourced units in an all-out fashion that no compromises would be seen in the proper fray of things and strict penalties and measures would be applied at the different locations of Europe, UK, Scandinavian countries, etc. This would instill the much needed strictness which is essential for the proper running of the business under the MultiChem Ltd’s regimes and its supply chain mechanisms would also be strengthened due to such measures. The primary responsibility of the outsourced units was to have better turnaround times than were being experienced at the present. This could mean that the competitors, if any, would face stiff levels of competition from MultiChem Ltd and thus there would be a better image of the company in the eyes of the clients as well as the potential and aspiring customers. Thus on the part of MultiChem Ltd, it is of paramount significance that the turnaround times are made proper and in line with the philosophies as taught by the parent location at Belgium, serving the cause of the whole Central Europe. The company’s reputation must not be jeopardized by acts of procrastination and laziness since this kills the essence of having an organization and a regime in the first place. The managing director is cent percent right in his understanding that the business needs proper and sound reconfiguring. MultiChem Ltd has lost its way somewhere down the road and it needed to get its act together. This could only be made possible by a sense of clear direction and whole hearted commitment towards the cause of the business. Perhaps the managing director needs to take some serious and unpopular decisions in the better interests of MultiChem Ltd. What is most important at the moment is to devise a policy where the business of MultiChem Ltd grows without letting go of its already established clientele. That said, there is a definitive need to comprehend the fact that the company needs to interact more and more with its clients and customers and tell them exactly the problems and hurdles that MultiChem Ltd faces so that the clients and customers understand what needs to be done for the betterment of MultiChem Ltd in the long run. Also the role of stakeholders is of immense significance here since they will discern the root cause behind a problem and thus do their best to get over with the very same in a swift manner. The processing delays, sourcing issues, container returns, outsourcing units’ performance and the overall changing nature of the business of MultiChem Ltd are some of the salient aspects that need to be studied in-depth before any decision could be reached upon and that too with a consensus in sight. In the end, it is pertinent to note here that MultiChem Ltd must give emphasis to its supply chain regimes more than ever. This is because it is the backbone of this business in entirety and without this; it cannot achieve success at any cost whatsoever. Also MultiChem Ltd needs to understand what it wants to achieve, where it wants to go, what it wants to do and how this will be done? All these questions need to be answered by the top management; the managing director and eventually these answers will pave the way for its future business processes, supply chain activities and so on and so forth. It is important that MultiChem Ltd understands its position within the industry that it operates, tries to lesson or two from the dominant position that it finds itself in and gain a stronghold over the markets that have already been captured. MultiChem Ltd needs to exploit its resources and work upon its weaknesses in a very consistent manner. It must not be fooled by false expectations and hopes which usually come its way every now and so often. People drive MultiChem Ltd and thus it is the people for whom it is in business in the first place. It must make sure who they are targeting and with what offerings. Only then success would kiss the feet of MultiChem Ltd. Adequate management thus remains the buzzword for MultiChem Ltd and it will continue to make waves as long as it is in the business. Bibliography AUTHOR UNKNOWN. (2007). MultiChem Ltd. – The Logistics Challenge Word Count: 2,515 Read More