Question

What are the key elements of World Co.’s supply chain strategy? (From "Supply Chain Management at World Co." Case Study)

Answer 1

World company’s supply chain strategy:

Most of the companies in the world are planned their products and services with different strategies in order to grow and avoid competitiveness in the market. Through supply chain all activities like flow of products, information and money are surrounded. The supply chain strategy works right from monitoring the production to distribution through various activities. Which also helps in lowering the cost and fast production. The applied strategies in sourcing, manufacturing, marketing and distributing to increase the value of the organization globally through supply chain strategies. These strategies play a crucial role in the development of organizational products or services in the global markets.

The supply chain strategies are important for any business to create a network between an organization and its suppliers in which supply enough products by producing and distributing to the customers. The organization has to maintain enough products in the organization and supply these to various distributors to reach the end customer or user. In between there are so many strategies and operations are involved. Distributing products globally through supply chain again a big task for the organization. Because there are so many internal operations and cost issues are involved if proper strategies are not applied during the supply chain than the company has to face so many issues and could not able to survive in the market. Let’s discuss the various supply chain strategies in world company’s:

1. Company relations: Every organization basic effort is to maintain a good relationship with every customer. Because a strong relationship always brings a great business to the company. The global relationships of the company should be strong to create a global demand for the products or services. The supply chain further strategies become easy to supply the products to the demand markets. This can be archived through regular interaction and collective feedback from the customers. Which helps to understand the requirements and ability of the customer to decide the product cost, demand and supply.

2. Developing unique value proposals: The company should develop a good proposal to win an order and order qualifiers this is the key elements and strategy of an organization. Because based on an order the company’s next strategies are defined. The best way of getting success in value proposal is developing the product in such a way that wins the customer heart that is the first success of any product later the further strategies are applied by making the products reach customers in through different ways.

3. Company focus: the organization should align its competitive position in the market with its supply chain process because when these two things are focused properly than the organization can achieve success in applying the strategies. By aligning the business strategy with supply chain brings a winning combination and organization will understand how the business proposal works better. These factors make the organization understand the global competitors and grow in the business.

4. Internal Processing strategy: This strategy best works when the resource in the organization are highly utilized during the supply chain process. The internal processing helps in developing the unique product specification that attracts the global customers by fulfilling the needs and requirements of all the customers. Even the staff coordination and corporation to achieve organization goal. The strategy involves every individual to contribute for the development of the organization.

5. Supply and Demand Planning: Where ever there is a demand the supply follows. The strategies that needs to create in such way that the particular department should able to understand the product demand and work accordingly, to supply as per the demand. Which automatically increase the organization sales in the global markets. This concept works by understanding the global customer needs and by developing unique products during the manufacturing process.

6. Product Packing strategy: Effective packing is very important to move the goods from one place to another to avoid the damage to the products at the same time delivering the products with higher packing quality standards always a winning strategy for an organization. The packing should contain all the information of the product on how to handle and what are the value of the products and its regulatory restrictions which helps the teams to handle the product in a better way before delivery.