Question

Explain why the company’s supply chain strategy is successful, for example, the selection and management of suppliers, and determination of information needs and systems

Answer 1

Supply chain strategy plays an important role in making the company successful. As the supply chain strategy deals with the supply of the raw material and the distribution of the finished goods to the end customer, we can say that the entire process starts and ends with supply chain only. So there should be a robust supply chain strategy.

• Selection and Management of suppliers : Suppliers supply the raw materials to the manufacturers which is then processed to form finished goods. So the selection and management of the suppliers is very important. Supplier has to be selected keeping in mind the following factors :1. Quality of the Raw material, Timely delivery, Supply Lead time, Credit facility, Flexibility of the supply. If the suppliers supply the good quality of raw materials and supplies promptly, the final goods turnout to be extremely good and there wont be any delay in the production process.
• Information needs and systems : Determining Information needs and systems is very important as if the suppliers are connected with the manufacturer through information system, there would be no delay in the production process and out of stock condition can be avoided. Real time information should be sent to all the partners of the supply chain and thus each stage would keep themselves ready for their role and thus there would be any delay in the production and the delivery of the products.