In: Accounting
Taking a recent purchase as an example, write an essay to discuss the supply network of your product from raw material until it arrives to the consumer. You are required to cover the following points in your essay/presentation:
Company overview, product overview, major competitors.
Stages of the product supply chain or network design, location of raw material in relation to the manufacturer, distributor, retailer and consumer, etc.
The relationship between suppliers and customers (first tier, second tier, etc.., horizontal or vertical integration (if any), levels of inventory and where it’s held.
Explanation of any problems and suggestions for further improvements of the supply chain
It is essential for the success of an organization to have an effective supply network. In this case a detailed supply network is discussed of X Limited which is involved in manufacturing and selling of clothes.
The company is in the business of manufacturing and selling of clothes. It sales different types of clothes to the customer through its retail outlets in the country. The main products of the company include male and female clothes along with kids wear. The major competitors in the market for the company area A Limited, B Limited, Y Limited and Z Limited.
The company receives its raw materials from different parts of the country. It uses the services of logistic companies to collect raw materials in the factory units. The raw materials once collected are used in the production of clothes. The clothes after being manufactured are send to its different retail stores using the services of logistic service providers. The clothes are then directly sold to the customer from is retail stores.
The relationship between supplier and customers are indirect in this case as the company manufactures clothes after acquiring raw materials from suppliers and sale the manufactured products directly to the customers from its retail stores. The company maintains significantly high quantity of inventory in its warehouse. However, the inventory levels at the retail shops are relatively low as the company uses a smooth logistic service proper organization’s services which helps it to send necessary clothes to its retailed stores as and when necessary.