Supply Chain Management of Peerless Product

Question: Discuss about theSupply Chain Management of Peerless Product. Answer: Introduction In todays volatile market, business companies and organizations are putting their supply chain operations in the forefront as a major factor affecting their performance and business strategy. Globalization, technological advancements, and stiff competition among other current global market complexities requires organizations to adopt customer-driven supply chain procedures that not only ensure growth in delivery but can as well reduce the market complexities and promote performance. This paper presents a case study of Peerless Product Inc an organization that is facing challenges due to lack of proper overall end-to-end supply chain capability. It focuses on the possible adverse impacts and risks the company is likely to experience, recommendations solution strategies, as well as suitable professionalism on the supply chain management that will help the organization implement the recommended strategies. As organizations continue to expand their regional and global footprints, the supply chain becomes more complex and complicated. The continuous change has tied the organizations desire to explore cost product on low-cost production processes while reducing the overall costs (Diaye, Greenan, Pekovic 2014, p. 5396). In such cases, Singh and Power (2014) denote that an organization will place its warehouse and assembling units closer to their customers so as to meet the demand of the customers. However, it is a strategy that results in the increase in the volume of the cross-border transactions that makes the internal supply chain of the organization more complex as experienced by Peerless Product Inc. With the complexity of the distribution processes, Prajogo (2013) denotes that such organizations need to work with various parties outside and within the organization so as to effectively meet the demands of the customers at reduced costs. Therefore, adopting effective end-to-end supply chain capability becomes very imperative for the success of the organization in meeting the set objectives, a strategy that is lacking within Peerless Product Inc. The company is thus affected on how it operates its product sales, distribution planning, managing outbound and inbound logistics, and in taking orders within the Chinese market. Risks and adverse impacts that may occur as a result of lack of overall end-to-end supply chain capability In their study, John et al. (2010) point out that the supply chain distribution channels of every organization should be able to turn around its potential distribution strategies into a source of competitive advantage. It is a step that needs to be adopted while working closely with the end-to-end strategy, strategic implementation and design that can transform the business into an effective global, regional, and local supply chain. In other words, poor end-to-end distribution capability in an organization can be detrimental to its operations. Without an end-to-end supply chain capability, the company risks the following; Poor Customer Services In their study, Singh and Power (2014) denote that the current business arena is characterized by a demand driven market where the customers are looking faster response rates. Organizations such as Peerless Product Inc are required to improve their supply chain capability so as to meet the market requirements and their customers. In his research, /// found out that 65% of business enterprises tend to bypass their distribution centers and order direct shipment procedures to stores to reach the market in a shorter period while satisfactorily meeting the demands of the customers. With globalization and technological advancements, consumers often timely expect the right products, at the right place, at the right time, and with the right quality and price. Lack of an end-to-end supply chain capability hence limits the organization from pre-emptively acting on the supply chain distributions as it is not able to identify any potential barrier or disruption in advance so as to take immediate actions. Therefore, the organization is not able to monitor the flow of the finished goods effectively so as to make it available to customers at the right time. Inadequate Inventory management According to Prajogo (2013), manufacturing organizations tend to explore options that can keep their inventories low so as to improve their working capital. The same study denotes end-to-end SCM capability enables organizations to achieve the Just-in-Time (JIT) concept of manufacturing so as to keep inventory at very low levels so as to keep their production running while reducing their inventory costs and resulting to an improve working capital. Achieving the JIT concept also provides the organization with the opportunity of designing reliable supply chain process for better support for the customers while meeting the bottom line business finances for the supply chain (Aschenbrand 2016, p. 22). However, a poor end-to-end supply chain capability and visibility deny Peerless Product Inc the chance of achieving the fewer inventories while meeting the market complex demands such a sustainability, competitiveness, and customer satisfaction among other global market challenges. As a resul t, the company is not capable of having up-to-date information on the availability and status of products and materials. Per Sullivan survey (2016), companies that adopt end-to-end supply chain capability often enjoy inventory savings of up to 20% of the value while decreasing the stock inventory within days of their operations. Lack of the end-to-end supply chain management process hence results to an inadequate inventory management. Poor monitoring of the Supply Chain Costs In his study, Meacham (2011) point out that the supply chain process of every organization requires effective maintenance of a transparent strategy on the ongoing processes from the consumer order, planning of the shipment process, container booking, container location, etc. It is an end-to-end capability process that is necessary for better supply chain planning so as to effectively monitor the costs such as advance payments, clearances, freight, and transport, as well as advance payments. Seth (2016) asserts that it is a critical step that enables the organization to have a complete control of its financial operation while taking necessary actions that will help in avoiding possible financial leakages like duplicate charges from service providers, utilization of incomplete container space, and free detention period controls. An effective control of the supply chain finances using relevant data and historical information on costs will enable the organization to plan effectively on b etter control over freight services levels and negotiations. However, it can only be achieved if the company is capable of ensuring an end-to-end supply chain visibility. Fragmentation in Risk Management Procedures The risks and impacts of supply chain often fall into compliance and operation categories. For instance, a compliance risk can occur due to the late filing of export or import transaction resulting in late declaration procedures to the government. On the other hand, an operation risk is likely to occur as a result of improper coordination between the relevant departments and stakeholders resulting in the delay in the arrival of goods to the warehouse. Addressing both of the risks require an organization to adopt an end-to-end supply chain process. As a result, Peerless Product Inc is not able to take any necessary mitigation step so as to ensure such risks are addressed through relevant mitigation steps in a timely manner. In his study, Seth (2016) also denotes that organizations going global results to materials are moving across geographies before it gets to the customers. In such a case, it is more complex to achieve visibility of the supply chain since several external functions, and internal departments are operating in isolation. The resulting impact is the lack of a system that can provide effective supply chain visibility in the process of collaborating the functions of the organization. With multiple functions in the flow of goods and services, the supply chain processes and systems developed often addresses the perspective requirement functions. In such a situation, the company is likely to face risks from impediments that affect end-to-end supply chain visibility. Recommended Steps and Strategies to Avoid the Identified Impacts A key element in the distribution of products to a company is a resilient supply chain end-to-end capability. In his study, Prest (2012) denotes that end-to-end capability enables organizations to track products at every point from the raw materials, manufacturers, and targeted customers while spotting potential hiccups within the route that require adjustments to ensure effective performance. End-to-end supply chain capability as well will help the organization in responding to major internal and external events and smaller but complex issues that can affect product distribution within the organization. There are many tools and strategic plans that can be adopted in helping companies to improve visibility in the supply chain and that as well be adopted by Peerless Product Inc to make it capable of ensuring an end-to-end supply chain process. For instance; Adopting a Supply Chain Planning System of Record (SOR) According to John et al. (2010), SOR is a planning platform that enables business organizations to create, link, align, manage, collaborate, as well as share the available planning data across its supply chain. The platform enables and end-to-end supply chain capability from the detailed operational planning through to a technical level planning and a demand plan creation through a supply-side response. Adopting such a platform will enable the organization to achieve a central system for multi-enterprise supply chain visibility, multi-tier capability, analysis, planning, and collaboration. It will enable Peerless Product Inc to concurrent plan, respond, and monitor across supply chain functions within a suitable time range so as to wholesomely maximize the performance of the business according to Jerole (2011, p. 78). From within a single system of the platform, the company will be able to achieve an active monitoring of projected and current business results, concurrent project plan ning, demand, supply, and product. It will as well achieve a rapid scenario comparisons and what-if analysis so as to evaluate impacts, risks, and alternatives across multiple functions of the supply chain. According to Inman and Blumenfeld (2014), the SOR tool also enables an enterprise to achieve an end-to-end SCM system integration. It hence eliminates isolation of supply chain management functions such as its product sales, distribution planning, managing outbound and inbound logistics, and in taking orders and treat them as subsequently integrated functions and innate part of the end-to-end supply chain broader platform. Technologically advanced tools such as RapidResponce can thus be integrated into the supply chain system to replace multi legacy demands and supply chain modules, planning systems, and typical myriads. The company will hence be able to leverage single products, single data technological models, within the single user interface for effective monitoring in the flow of products and services from the manufacturer to the targeted customers. Therefore, adopting such tools will enable current planning across functions as well as time horizons while facilitating continuous orchestration of its operation performance not only in the Chinese market but even across borders of its operations. Investing in Technology In his study, Brumett (2016) point out that technology is one of the ways a business can achieve the target strategies on the end-to-end supply chain visibility. For instance, supply chain control tower process is a technological concept that involves data and connections processes, people, planning engines, as well as other stakeholder factors in solving supply chain challenges experienced by organizations. It hence offers a platform for monitoring other end-to-end supply chain challenges while offering relatively complex solutions other than just providing alerts. According to ModusLink Global (2010) report, organizations that adopt the concept of Control Tower have better capabilities in managing critical end-to-end relationships while giving the organization ability of holistic view of the supply chain management. The organization should as well build its definition for the visibility of the end-to-end supply chain processes while identifying the key performance indicators that c an measure the supply chain strengths, weaknesses, and its general performance. Expectation of the Supply Chain Vice President in Respect the Potential Risks at hand As a business enterprise facing challenges in its supply chain management, Peerless Product Inc requires a supply chain president with high skills and competencies that can ensure adoption of relevant and effective strategies that can ensure the organization achieves an end-to-end supply chain capability. He needs to be an individual who is motivated to address challenges and have an interest in the field of supply chain management (Dittmann 2012). Selecting the right president who can oversee the increasingly pivoted supply chain responsibility should focus on five key characteristics. These include; Global oriented A system thinker Inspirational and influential leadership skills A good communicator Must possess superior business skills Comparison of the Supply Chain and the manufacturing Vice Presidents Both the manufacturing and the service industries require labor input in completing necessary processing strategies to meet the desires of the customers. In the manufacturing department, Peerless Product should ensure that the vice president of the department is focused on the procurement, transportation, and manipulation of the physical material (ModusLink Global 2010, p. 45). The president will then ensure that the machinery and equipment are well coordinated towards the production of a product that meets the need of the market. On the other hand, the supply chain president will ensure that the supply chain management of the organization is directed towards logistics in moving physical materials from one point to another. The supply chain president hence ensures a networking process between the raw materials and the finished products to the customers within the required time. In his study, Taylor (2015) denotes that the manufacturing section will assist the organization I negotiati ng better shipping rates, upgrades of services, flow of communication, and price reduction strategies towards the production of quality products. On the other hand, the supply chain president focuses on how the finished product timely reaches the target customers. Conclusion In the process of locating, transporting, or obtaining inputs required is the function of the supply chain as the end goal of every organization is customer satisfaction. It thus means that the supply chain management of every organization requires a great deal of focus on the physical products as well as the broader supply base. Like any other company, Peerless Product Inc needs to adopt strategies that will ensure that organization has effective end-to-end supply chain network to ensure that its products timely reach the target customers without any financial loss. Therefore, adopting an end-to-end supply chain capability will ensure the organization addresses some of the challenges faced in the Chinese market while strategizing on solutions to possible risks that can occur in the networking process. List of References Aschenbrand, J 2016, 'A portrait of the supply chain manager',Supply Chain Management Review, 20, 4, pp. 22-28, Business Source Premier, EBSCOhost, viewed 15 December 2016. Brumett, R 2016, 'How to Navigate the Many Risks in Your Supply Chain',Material Handling Logistics, 71, 8, pp. 29-31, Business Source Premier, EBSCOhost, viewed 15 December 2016. 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