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Supply Chain Management Essay Example

Type of paper: Essay

Topic: Supply Chain , Supplier , Design , Risk , Goals , Network , Decision , Business

Words: 1400

Published: 01/01/2022

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Describe the steps you would go through in analyzing whether a memory chip currently being produced in Santa Monica, California for a computer manufacturer in the Silicone Valley should be outsourced to a location somewhere in Asia. The following steps are performed for deciding whether the memory chip can be sourced from a manufacturer located somewhere in Asia: Step 1: The process is defined. The first step that one has to take for a location decision making for network design is to define the process steps. A supply chain transformation team who will be responsible for all the steps in the transformation is constituted. The team will be aware of all business needs, strategies and business goals. The parameters and objectives for the design are set and the potential third party suppliers are involved in this. Step 2: The Supply Chain audit is performed. As a result of this audit, the following information is obtained 1) Customer requirements or environmental factors, 2) The crucial goals and objectives for the supply chain, 3) Status of the current supply chain, 4) Understanding of the key activities involved, 5) Benchmarks of Key Performance Indicators for factors such as cost, 6) Gaps identification, and 7) Measurable key objectives for the network redesign. Step 3: The alternatives for the network supply chain are examined. This is done by applying optimization, simulation, or heuristic or a combination of models to the current as well as the proposed supply chain design. The optimization model selects the best solution, simulation model replicates the functioning of the supply chain with the new location as part of it (thereby revealing any issues), and the heuristic model looks at different probable scenarios without providing an optimum solution. Each type of model has a different goal so depending on the goals, the right type of model or models are applied. The outcome of this step will be to gauge which network design (or in this case, the location) is best suited for achieving the business goals. A what-if analysis is conducted to check the robustness of the selected network design. The output of this step could be Key goals and objectives regarding the logistics, profile of the current supply chain, benchmark values for costs, Key performance measures, Identification of gaps, Key objectives for the intended network design, and other related information. Step 4: A facility location analysis is conducted. Quantitative and qualitative analyses are conducted to analyze the attributes of each locale. A location analysis team is constituted, which will look deeply into the location attributes. If required, this team may utilize the services of a consulting company to assist them in this effort. While the quantitative analysis is already done in step 3 so the qualitative factors such as the labor climate, taxes, incentives for industries, cost of land and utilities and so on are analyzed. Step 5: The decision regarding the network design and location is made. The outcome of step 3 and 4 is the supply chain design that suits the best, if the decision to shift to the supplier for memory chips from Asia has been found to be beneficial. If the previous steps show that it is not beneficial to shift to the new supplier from Asia, then it will be business as usual and the plan to redesign the supply chain will be discarded. Step 6: If the previous steps decide that it is beneficial to do a supply chain redesign, then an implementation plan is developed. A roadmap for implementing the restructuring of the supply chain network is prepared. Firm resources are committed and the restructuring implemented. What factors would you consider in this analysis? Be thorough in considering all of the potential factors that might affect the outcome of your decision. The supply chain design has become very complex due to the globalization of the businesses spanning several international borders. Amongst those decisions, one of the more complex problems is the selection of the supplier location for the business. The following table shows one way to aid in the selection process. It uses the PERC model of Hierarchical Structuring. The following factors (indicative) were considered in the Hierarchical Structuring using PERC Model. Each factor is again given weights based on the business necessity to help arrive at the right decision.

Describe the effect on your supply chain if the decision was made to offshore the sourcing of this component to Asia. Consider transportation, inventory, management, and other costs that would be affected. Also consider the risks involved in sourcing overseas. The effect of outsourcing the memory chip component on the supply chain is on multiple fronts. When the network design was completed and the decision for outsourcing the component is taken, then it means that the net effect of the decision on the organization is positive. The decision will have negative impact the costs of transportation as the memory chips have to be transported from Asia instead of procuring it from Santa Monica, California. Since the delivery cannot be guaranteed with the same level of confidence as earlier, more inventory has to be managed resulting in increase in inventory costs. There is a requirement for more management oversight due to the distance resulting in increase in management cost. The flexibility of the supply chain is impacted as the supplier may or may not be able to respond quickly to requests for any changes. The other parts of the supply chain have to make up for this lack of responsiveness and distance from host country and supplier. The service levels might be impacted negatively due to the distance. However, the company will be able to access world class capabilities and can accelerate reengineering process as the Asian companies have good foundry capabilities. Since they supply for many clients, they are continually upgrading their foundry technologies to stay in business and those benefits are immediately available to the clients. They are also quite capable for quick ramp up and ramp down of production capabilities and it is a benefit. Due to the growing awareness and legislations, it is important to conduct regular supplier audits to ensure that they are not violating any U. S. legal laws such as using child labor, prohibited raw material, or similar violating the supplier code of conduct. Due to the distance, it becomes difficult to do these audits. The risks due to offshoring can be supply related risks, which result in rate disruptions and delays. Political risks in the supplier country could be a risk resulting in disruptions. There is a possibility that a competitor may acquire the supplier and potentially lock-out supplies. Acts of god like volcano eruption, earthquake and acts of man such as war and terrorism and other similar situations are possible, disrupting supplies. Misapplied investment due to wrong planning of capacity can be a risk. IP laws in Asia are not as strict as those in the U.S., which is an issue. Single sourcing helps reduce the costs due to economies of scale but could hurt the company in case there are any disruptions. Supplier delays can cause delays in material flow, production quality issues or yield issues could affect the schedules due to which inventories might have to be maintained, which hurts the financial performance. Loss of reputation due to lack of quality, risk due to cultural differences (communication may be misread and wrong action is taken), environmental risk and compliance cost, and fluctuating exchange rates. A bigger risk could be that of letting the competition build as the supplier could become the competitor tomorrow using the knowledge from the technology and processes gained from the parent company, similar to Apple and Samsung scenario.

Donald J. Bowersox, D. J. (2002). Supply Chain Logistics Management. New York, NY: The McGraw-Hill Companies, Inc. John J. Coyle, C. J. (2013). Supply Chain Management: A Logistics Perspective. Mason, OH: South-Western CENGAGE Learning. Kameshwaran, N. V. (2016). Location Selection in Global Supply Chains. Hyderabad, India: Centre for Global Logistics and Manufacturing Strategies, ISB. Kroes, J. R. (2007). Outsourcing of supply chain processes. Atlanta, GA: Georgia Institute of Technology. ManMohan S. Sodhi, S. L. (2007). An Analysis of Sources of Risk in the Consumer Electronics Industry. Journal of the Operational Research Society, 1-24.

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Supply Chain Management essay

SupplyChain Management

Supply chain management is theoverall control of the flow of goods and services. The supply chaincomprises of processes that depict the movement of raw materials intowork in progress and finally to the final product. Specifically, thesupply chain consists of services, goods and business partnersinvolved in the transfer of products from their points of origin tothe consumption point. Supply chains are interconnected networks,business nodes, and channels that facilitate the flow of goods andservices. The main activities in a supply chain entail planning,designing, execution, control and monitoring of all the activitieswithin the supply chain. The aim of all the activities is to createnet value, to leverage networks and building competitiveinfrastructures. Consequently, supply chain management is anessential part of an organization`s operational efficiency applied toensure customer satisfaction, as well as, the overall success of acompany (Wisner, Leong &ampTan 2012).Supply chain management encompassesthe planning and management of all activities involved in sourcingand procurement, conversion and all logistics management activities.It entails the coordination and collaboration with channel partnersthat include intermediaries, suppliers, third party serviceproviders, and customers (Lambert, 2006).I decided to evaluate the level towhich the principles of supply chain management apply at McDonald’sUSA. Consequently, I decided to have a talk with one of the managersat a local McDonalds shop. McDonald’s is the largest chain of fastfoods restaurants. The company serves approximately 70 millioncustomers on a daily basis throughout its chains located in more than119 countries. Specifically, the chain has 36,535 outlets all overthe world (Lambert, 2006).

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Giventhe scope of the company, it has a very sophisticated supply chainnetwork. The outlets sell a variety of goods such as cheeseburgers,chicken, French fries, breakfast items, milkshakes, desserts and softdrinks. According to the manager’s explanation, the company seemsto have a very sophisticated model of managing its supply chainmodel. The manager explained that McDonald’s supply chain operateas a franchise. Specifically, McDonald’s uses a three-legged stoolmodel to manage its supply chain networks. First, the business isstructured as a rental agreement. Franchisees rent the restaurantfrom a building owned by McDonald’s and own the interior part, andthe rest of the building belongs to McDonald’s. The three-leggedstool represents McDonalds as one leg of the stool, the suppliersrepresent another leg and finally, the other leg represents thefranchisees (Lambert, 2006).

The Three- legged stool of McDonald’s

Franchiser (McDonald’s)

Flowof supplies- SCHM

Theglobal nature of the company calls for the establishment of standardroutines and qualities. Regarding pricing, the company works on abasis of predictable prices. Consequently, the company establishesvery close contacts with the suppliers as well as obtaining knowledgeabout the industry. After understanding the commodity markets, thecompany set stable prices on its purchases as opposed to competitiveprices. The inventory management system at McDonald’s serves as agood ground for reducing excess inventory as well as lowering theaccounting costs in the chain (Lambert, 2006).

Suppliersand inventory management

Theprincipal aim of inventory management at McDonald’s is to reducethe operation cost in the supply chain. First, the company has fullyoutsourced its supply chain operations, specifically, warehousing andlogistics. The aim of outsourcing is to reduce the operational costsand to enable the franchisees to concentrate fully on the customerwithout worries about the supply of goods. The company operates witha set of recognized transporters and warehouse owners who are incharge of providing the supplies for the outlets. The company has anaccurate system that predicts the quantities of products in eachrestaurant to enable a perfect strategy of outsourcing. The storemanagers have the capacity to adjust the levels to enhance theaccuracy of prediction, for example, when there are expected changesin the rate of consumption due to sport events (Wisner et al., 2012).

Supplychain cost reduction

Concerningthe costs, McDonald’s reduces its overhead costs through loweringthe cost of acquiring and procurement of raw materials. Initially,McDonald’s had set strict guidelines for its suppliers of rawmaterials and other outsourced services. The businesses uniquelysupplied McDonald’s and could not provide any other business,especially, the competitors of the organization (Wisner et al.,2012).

Recently,McDonald’s has started allowing its suppliers to provide servicesto other companies. Although the practice was restricted in the past,the aim is to lower the costs of transportation and warehousing byenjoying the economies of scale. The ability of suppliers to supplyother companies enables the reduction of fixed costs. Consequently,the vendors can provide goods to McDonald’s at a lower price ascompared to the situation before when they were the sole suppliers(Wisner et al., 2012).

Thefranchisees.

Atthe restaurants, the managers spend most of their time estimating thelevel of inventories to prevent stock outages. The amount requiredhas a high possibility of changing since the franchisees do not fullytrust the system. Consequently, the managers frequently adjust thelevels required and provide constant communication to suppliers(Wisner et al., 2012).

Thetime horizon of the supply chain

Themajority of McDonald’s suppliers have existed from the beginning ofthe company. Consequently, the businesses have a relationship ofdecades. The McDonald’s outlets work to ensure that the suppliersrealize the benefits of long-term relationships. The most interestingfact about McDonald’s supply chain relationship is their lack ofcontracts as agreements. The lack of contracts is due to theresultant mutual trust from long-term business relationships. Themanager explained that contracts created lower confidence between thepartners. Besides, as a result of the time horizon, the franchiseesare willing to invest in the buildings despite the fact that they areowned by McDonald’s. The key reason for the franchisees willingnessto invest in the buildings is that they believe in the investment andthe future of the McDonald’s brand (Wisner et al., 2012).

Levelof coordination in the supply chain

McDonald’ssupply chain involves a constant need for coordination since it iscomprised of many components that are used to deliver goods fromsuppliers to customers. The suppliers conduct most of thecoordination. Due to the high coordination of suppliers andrestaurants, they can develop efficient sourcing strategies as wellas future product development. The franchises are frequentlycoordinated on the management level as well to ensure consistency inthe flow of operations (Wisner et al., 2012).

Jointplanning.

Thefranchisees and the suppliers conduct meetings to enable planning andforecasting. Since the suppliers are experts who have specialized inlogistics and warehousing, they can provide adequate information. Thecompany is saved from costs of research and development, as thesuppliers are conversant with the business. Specifically, thesuppliers provide information on future prices of raw materials tothe company. Besides, the suppliers provide plenty information on theavailability of raw materials in the future. Expected shortages ofraw materials are anticipated by changing the sourcing strategies ofcompany (Wisner et al., 2012).

Inconclusion, although most of the supply chain is discussed in theory,the practical application of the supply chain process is problematicto carry out in practice. The members of the McDonald’s supplychain coordinate their activities, as it is required in theliterature of the supply chain management. Given the success of thecompany, it is possible to conclude that an efficient supply chain isa backbone of any successful company. Consequently, McDonald’sremains unbeaten in the fast food industry due to the efficiency ofits sourcing operations.

Lambert, D.M. (2006).&nbsp Supplychain management: Processes, partnerships, performance .Sarasota, FL: Institute

Wisner, J.D., Leong, G. K., &amp Tan, K. (2012).&nbsp Supplychain management: A balanced approach .Mason, OH: South-Western/Cengage Learning.

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Supply Chain Management, Essay Example

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Supply chain management has a great impact on all areas of business. It affects customer satisfaction in a way that people get products in time. It also has an impact on cost savings projects and overall productivity. Indeed, a company is not able to produce an income or profits until the product or service is delivered and paid by the customer.

Supply chain management has one single goal: to manage the chain of supply through the system matching it with the demand of the market. This often involves advanced communication among different suppliers and departments, prediction or reporting of production, delivery. The end result should be to deliver the right product at the right time at the lowest possible cost for the customer’s highest level of satisfaction.

While production management and process improvement methods covered previously within the course are useful, if the product does not arrive at its final destination: in the hands of the end-user, the company fails to meet the market demand.

The main challenges calling for effective supply chain management are: global competition, outsourcing of processes and manufacturing, e-commerce operations, shorter life cycles of products, greater complexity of supply chains and environmental concerns worldwide. Further, cost-advantage development needs to be considered through comparing the cost of inventory with the final price paid by customers. The main costs to be monitored are capital costs, storage costs and risk costs related to holding inventory.

The main difficulty the designers of supply chain management face is the “bullwhip effect”. The fluctuation of production within the supply chain, delivery, lead times and market demand are not level, and the more complicated the chain is the harder it is to manage this phenomenon. A close monitoring of capacity utilization, speed of the product going through the supply chain and the variation of demand throughout time is an effective way of overcoming the bullwhip effect.

Supplier analysis and management is another method to ensure that products are delivered in time and the quantities match market demand. As Apple’s example shows, tracking parts and requesting detailed reports, predictions from suppliers is an effective preventive measure used to eliminate faults within the supply chain. Auditing suppliers while maintaining effective communication and relationships is also essential.

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Supply Chain Management - List of Free Essay Examples And Topic Ideas

Supply Chain Management (SCM) involves the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. Essays on SCM could explore strategies for efficient supply chain design, logistics, and inventory management. They might delve into case studies analyzing successful or failed supply chain practices in specific companies or during crises like the COVID-19 pandemic. Discussions could also explore the integration of technology in SCM and the ethical considerations in global supply chains. We have collected a large number of free essay examples about Supply Chain Management you can find at PapersOwl Website. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

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Essay on Supply Chain Management

Introduction

Supply Chain Management is the management of the gradual flow of goods, services, and production, which include the movement and proper storage of raw materials, logistics, work-in-progress inventories, and finished goods or products. Sunningdale Tech Ltd is a manufacturer of audio equipment, steel moulds, and plastic injection products, among other equipments in Singapore. The purpose of this essay is to analyze as a supply chain manager of Sunningdale Tech Ltd, the effectiveness of the four key flows in supply chain management; the making process, and the supply chain forecasting and all relevant improvements according to the theories and concepts in supply chain management (Davis, 1993).

Sunningdale Tech Ltd is a manufacturing organization focused on building and selling mould and plastic injection products. The company was founded on the December 5, 1995, and the headquarters is located in Singapore. This is one of the leading producers of precision steel moulds in Singapore. They are responsible for designing, marketing, exporting, and managing manufactured technological products like car audio equipment, steel moulds, and plastic injection products; they render product design consultancy, mold flow services, selling of dies, tools, jigs, fixtures, and other plastic components, and project management. Their divisions are Healthcare, Automotive, Information Technology, and Mould Fabrication. Each segment produces a specific product or service; Automotive division mainly produces faceplates for audio systems and climate control, exterior antenna covers, steering switches, and speedometer equipments. The Healthcare division produces scoops, drug delivery, diagnostic devices, and caps. The Information or Consumer Technology division renders water filtration products, grooming products, and inkjet cartridges. The Mould Fabrication segment designs and manufactures various moulds that are also used for manufacturing of plastic injection parts. There are about 28 branches around the world, with over 872 employees. They are able to generate over 120 companies to supply products to on regular basis, in countries like USA, Malaysia, Mexico, and Latvia.

The Key Flows in Supply Chain

The manager of the supply chain is responsible for keeping track of the movement of products, information, cash, end-to-end flow of goods, and return of products. As a supply chain manager of Sunningdale Tech Ltd manufacturing company, there is a role to oversee and manage every stage of the production flow, from purchasing of raw materials to the delivery of the final product, timely production, as well as coordinate the storage of the product. Flow of products in the supply chain is the movement of goods from the organization to various customers across the world.

Sunningdale Tech Ltd work in a very effective production flow within the supply chain management process, this is done by demand planning and product planning, where a specific number of Sunningdale Tech Ltd products are produced within the various factories across many countries. The products are stored following a specified schedule of the organization and transported to larger warehouses of Sunningdale Tech Ltd Company as an inventory hold. The goods are carefully evaluated and transported to various warehouses of retailers of the company in different locations and then get to the various retail outlets of Sunningdale Tech Ltd, the products are then delivered to customers at various point of delivery.

Sunningdale Tech Ltd Company Information flow is very important in supply chain management because this information flow serves as the link between each stage in the supply chain management. There are effective IT technological tools that help enhance the information flow within the supply chain process (Li, et al. 2011). The use of computers and the internet help keep track of information and improve the performance of the organization

Sunningdale Tech Ltd Company cash flow relates to how payments are made based on timing and frequency of payments to suppliers and from customers, vice versa, invoicing steps for customers, how accounts are managed. The flow of cash perspective in supply chain management process can be specified into cost and investment expenses, and the fund or revenue from sales. The cost is the various expenses incurred and investment relates to the payment of various expenses incurred by the organization. Costs are incurred during the supply chain process and contribute to the profitability of the business and require settlement (Patnayakuni, et al. 2006).

As a supply chain manager, the reduction of cost and increasing revenue or fund are very important. Cash expenses are monies paid by Sunningdale Tech Ltd Company to keep the organization operating and revenue cash flow is the movement of monies from customers to the organization. To enable the company to gain profits, revenue must always be higher than the cost incurred. Payment are arranged according to organization’s plans, schedules, credits, and other financial arrangements to receiving cash from the public and in paying expenses of the business are gathered annually and recorded. There is a need to manage various financial flows of the organization.

Inverse flow is the return movement of goods from customers to the company and how the organization refund and collect these goods back into the company safely. Inverse flow of goods from customers or retailers made by receiving information related to any problem of the good to be checked and solved. The return flow passes from the customer to the vendor, then to the retailer, and shipped to the Company. After the correction is made, the product is sent back through the same process to the customer with a discount to enhance customer satisfaction.

(Pedrosoa & Nakanob, 2009)

The Make Process

The Sunningdale Tech Ltd Company have a specified production planning and make process for developing goods for the organization and manufacturing of the organization’s products. This ensures that all resources, investments, and raw materials are enough and accessible for producing goods and services in the organization. Activities involving measures taken as a supply chain manager in directing, regulating, and controlling various productions of the organization is arranged and rolled out accordingly.

The make process is a very important aspect in supply chain management and this requires gradual important steps in manufacturing goods and services in the organization. The success and wellbeing of the organization is linked to tallying the production level of the organization to the resources to produce these organizations. The resources should be enough to facilitate the production of goods and services for the organization successfully. Sunningdale Tech Ltd require appropriate allocation of resources including, workers, raw materials, production machines, product deliveries, transportation of goods to customers, and purchasing raw products from suppliers are done during production planning

The way taken by various products into the organization is arranged and designed to facilitate the movement of products from suppliers to the company. After identifying the routing process of goods, the execution is when customer’s orders are delivered to their locations successfully. This will help avoid frustration and delay in order execution, production that moves with a good plan always help in preventing customer disappointment and help to improve their satisfaction. Good production planning involves the production of the right goods, foreseeing the future, analyzing, and using potential manufacturing plans to achieve set goals. Allocation of resources is done by assigning team members the right task and machines to operate (Longo & Mirabelli, 2008).

Sunningdale Tech Ltd should have proper planning of technological material requirement to be able to analyze needed input resources, components and materials required to produce various products in the organization. The production planning schedule is a widely used system that helps in improving productivity of a given manufacturing organization (Håkan & Göran, 2004).

This planning schedule helps in advancing and improving the production performance of the organization. The manufacturing requirement planning uses information from expenses or cost of materials, production, and flow of goods to understand the needed inputs and various costs during the manufacturing process. Planning the arrangement of materials and other material components of the organization will help enhance the manufacturing success of the various products along with the quantity of the product, with appropriate determination of the right items to produce. The Company identifies the number of confirmed orders and production to make during operations.

As a supply chain manager, my duty is to ensure that the organization have access to needed materials and resources for production of products. There are several products required by customers from the organization, and with demand and order description, I will be able to check and allocate the right materials for production in the organization. Demand directly affects the quantity of goods to produce for customers in general. I will be able to setup a strategic planning system that will be able to track products and supply chain production in the organization.

(Håkan & Göran, 2004).

The Supply Chain Forecasting

Forecasting model in supply chain management relates with the upcoming events expected to take place in the market and production system in the future. This is just like predicting expected future of the organization in a qualitative or quantitative way. The supply chain forecasting methodology and models examine the future expectations and outcome of how demand and supply range will project, how the customer’s reaction towards a specific product will change, and the change in price level of goods in the market (Singh, et al. 2006). There are benefits the organization derives from supply chain forecasting, including helping to prepare for a new condition arising.

The supply chain forecasting will guide the Company know the right goods suppliers are willing to offer the organization, and how these goods will determine the performance of the Company, in order to take necessary measures immediately before becoming too late. Various evaluations are conducted on the market to provide a complete position of the organization in the near future. In forecasting, especially in supply chain management, factors like weather, technology, research, among others relate with the supply chain management of the organization. This describes how these factors will influence consumers demand and interest in each week, months and years (Helms, et al. 2000).

Price forecasting model is a description of supply and demand influence on prices of goods and services in the market. Situations such as a low income, bad road and weather conditions, and poor environmental conditions could lead to a reduction in the price of Sunningdale Tech Ltd products like precision steel moulds, car audio equipment, plastic products and tools, among others. The price forecasting model helps businesses to know when necessary to cut down prices or increase prices and this will help the Company to know when to maximize the price level of products and the time to reduce the price to fit well in the market at a given time (Gattorna & Jones, 1998).

Another model called demand forecasting model that allows organizations to keep the right number of stocks enough to satisfy all demands. The demand forecasting model will help the Company to utilize time, resources, and efforts properly to improving the production of goods at the right time. The demand forecasting model is very helpful in identifying the interest of the public and behavior of the market demands, including preference, trends, seasonal goods, personality, and behavior of the customers (Guanghui, 2012).

Opinion forecasting model is a qualitative forecasting model that describes how the opinions of experienced experts make meaningful analysis and projections into the future without statistical data and where there is no available data to be measured. This model uses an easy and quick method to anticipate future market trends and structure. The market research model is a qualitative forecasting module that uses market research and analysis to forecast future events. This can be done by staff, firm members, and the Company will have researchers to use research opinion poll, telephone, interviews, and questionnaires.

Various quantitative and qualitative model of forecasting relating to average moving model goods, economic model, opinion of experts, research model, and strategic model are classified based on the quantitative and qualitative analysis of the supply chain forecasting model. The moving average model uses the quantitative forecasting model to analyze data and understand data about the market prices, sales, demands, supplies, and many more. The econometric modeling is about how regression analysis and independent regression is measured to determine the influence of an economic variable to another and to understand the outcome of the analysis (Helms, et al. 2000).

(Rogelio & Watson, 2009)

Production across the various four key flows of supply chain management and how to serve as a supply chain manager of Sunningdale Tech Ltd is steep into the making process, and the supply chain forecasting in order to enhance the movement and production of products along the supply chain management process. The various flows of products along the supply chain management process like information flow, cash flow, product flow, and return of goods are major duties of the supply chain manager in order to ensure the positive operation of the business in the organization. Sunningdale Tech Ltd ensures that goods flow from one stage to the other till customers acquire their products and appreciate the product, and the supply chain manager also has to improve the relationship between customers and the organization through technical, brand, and research development. The supply chain manager also ensures that the right supply chain forecasting model such as the demand forecasting model or price forecasting model is used correctly. It is important that technological tools are encouraged and used to induce the positive performance of Sunningdale Tech Ltd supply chain management and maximize information and transactional management potential of the manufacturing company. This helps in improving the effectiveness and efficiency of the business and supply chain management.

Bibliography

Davis, T. (1993).  Effective Supply Chain Management.  Massachusetts: MIT. Retrieved from http://blogt.ethz.ch/ETHambassadors/files/2018/06/Davis-Effective-SCM.pdf

Gattorna, J., & Jones, T. (1998).  Strategic Supply Chain Alignment: Best Practice in Supply Chain Management.  Vermont: John L. Gattorna. Retrieved from https://books.google.com.gh/books?hl=en&lr=&id=pS03aP72VR8C&oi=fnd&pg=PA1&dq=KEY+FLOWS+IN+supply+chain+management+&ots=Uuo2-b6Tx2&sig=OyA6s1Z7xK46UOykRAqNMuAKSgg&redir_esc=y#v=onepage&q=KEY%20FLOWS%20IN%20supply

%20chain%20management&f=false

Guanghui, W. (2012). Demand Forecasting of Supply Chain Based on Support Vector Regression Method.  Procedia Engineering Journal , 280-284. Retrieved from https://www.sciencedirect.com/science/article/pii/S1877705811065441

Håkan, H., & Göran, P. (2004).  Supply Chain Management: Teh Logic of Supply Chains and Networks.  Bingley: Emerald Group Publishing Limited. Retrieved from https://www.ingentaconnect.com/content/mcb/ijlm/2004/00000015/00000001/art00002

Helms, M. M., Ettkin, L. P., & Chapman, S. (2000). Supply chain forecasting – Collaborative forecasting supports supply chain management.  Discover Journals, Books & Case Studies , 1463-7154. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/14637150010352408/full/html

Li, J., Chen, J., & Wang, S. (2011).  Risk Management of Supply and Cash Flows in Supply Chains.  London: Springer Science. Retrieved from https://books.google.com.gh/books?hl=en&lr=&id=2gh9BHT9NRkC&oi=fnd&pg=PR3&dq=KEY+FLOWS+IN+supply+chain+management+

&ots=scwXIMOkGm&sig=0h1oVMkUVz6xfXEhDCQOl3g1pnI&redir_esc=y#v=onepage&q=

KEY%20FLOWS%20IN%20supply%20chain%20management&f=false

Longo, F., & Mirabelli, G. (2008). An advanced supply chain management tool based on modeling and simulation.  Computers & Industrial Engineering Journal , 570-588. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0360835207002100?casa_token=HeksMSixGbQAAAAA:w05VLMIDWGIkA2xUQJodfMDZi5cE4Sre72m

G0899jBynpC8RV_6PzdqWsNLk9s7bx3O6SnMrZQ

Patnayakuni, R., Rai, A., & Seth, N. (2006). Relational Antecedents of Information Flow Integration for Supply Chain Coordination.  Journal of Management Information Systems , 13-49.

Pedrosoa, M. C., & Nakanob, D. (2009). Knowledge and information flows in supply chains: A study on pharmaceutical companies.  International Journal of Production Economics , 376-384. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0925527309002011?casa_token=umKrV-90DUQAAAAA:AKgRfA9Wzbnb1i2S-hjN3E1d0rVMiDqzrxaTfavIcnC2SKz0gqwoPymlOS2s53eL0mP6oBMQQw

Rogelio, O., & Watson, N. (2009).  Managing Functional Biases in Organizational Forecasts: A Case Study of Consensus Forecasting in Supply Chain Planning.  Sri Lanka: Production and Operations Management Society. Retrieved from https://onlinelibrary.wiley.com/doi/full/10.1111/j.1937-5956.2009.01003.x?casa_token=Ff1e1Js36kQAAAAA%3AftCP3uMN-2rc4mWg_Igcf3NzmFOxoZcieT5peXOVjBet39XGLKDPRLeQmTif9yvCcn4gdj4oGSsLTQ

Singh, N., Olasky, J. S., Cluff, S. K., & Welch, F. W. (2006, 10 29).  Supply chain demand forecasting and planning . Retrieved from Google Patents: https://patents.google.com/patent/US7080026B2/en

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Impact of Supply Chain Management

Introduction.

Supply chain management has always been a crucial aspect of business operations, and the COVID-19 pandemic has highlighted its importance more than ever. The pandemic has caused significant disruptions in supply chains worldwide, affecting various industries, including the pharmaceutical sector. The development and distribution of COVID-19 vaccines have further emphasized the critical role of supply chain management in the success of a product. The COVID-19 vaccine development and distribution process, coupled with the urgency to deliver vaccines to the world’s population, has placed immense pressure on supply chain management(Alam et al., 2021). The successful development and distribution of COVID-19 vaccines have been attributed to the effective supply chain management. In this essay, we will explore the challenges faced in managing the supply chain during the COVID-19 pandemic, such as the shortage of raw materials and logistical challenges. Finally, we will discuss the lessons learned from the COVID-19 vaccine supply chain management and how they can be applied to other industries to ensure continued success.

The COVID-19 pandemic has caused unprecedented disruptions in supply chains worldwide. In the pharmaceutical industry, the pandemic has affected the development, manufacturing, and distribution of vaccines, which have become critical tools in the fight against the virus. The successful development and distribution of COVID-19 vaccines have highlighted the importance of effective supply chain management. However, the process has been challenging due to several factors, including the shortage of raw materials, logistical challenges, and global vaccine demand. In this essay, we will discuss the challenges faced in managing the supply chain during the COVID-19 pandemic and how they were addressed.

One of the significant challenges in managing the COVID-19 vaccine supply chain was the shortage of raw materials. The vaccines’ development required several key ingredients, including glass vials, needles, and adjuvants. The shortage of these materials affected vaccine production, leading to delays in delivery. For instance, in January 2021, Pfizer announced a delay in vaccine shipments to European countries due to supply chain issues. The shortage of raw materials was mainly attributed to the disruption of global supply chains, with many countries imposing lockdowns and travel restrictions. To address the shortage of raw materials, manufacturers had to look for alternative sources. For instance, Pfizer and Moderna turned to suppliers in Asia and Europe to secure raw materials. The companies also increased their production capacity by investing in new manufacturing facilities and partnerships. In collaboration with Oxford University, the UK government established a vaccine manufacturing center to produce vaccines locally, reducing dependence on foreign suppliers.

Logistical issues are a challenge in the COVID-19 supply chain too. The vaccines’ distribution required complex and precise logistics, including cold chain management and transportation. The Pfizer vaccine, for instance, had to be transported and stored at ultra-low temperatures of -70 degrees Celsius. The logistics involved in transporting the vaccine to remote and rural areas presented additional challenges, with many areas needing more infrastructure for cold chain storage. Manufacturers and governments collaborated with logistics companies and transportation providers to overcome logistical challenges. For instance, Pfizer partnered with UPS and FedEx to distribute vaccines in the United States, while Moderna collaborated with transportation company McKesson(Alam et al., 2021). In partnership with logistics company DHL, the UK government established a network of vaccine distribution centers across the country.

Thirdly, The global demand for vaccines was also a significant challenge in managing the COVID-19 vaccine supply chain. The pandemic affected countries worldwide, leading to high demand for vaccines(Alam et al., 2021). The demand was further exacerbated by vaccine nationalism, where countries prioritized their citizens over others. The high demand for vaccines led to supply chain disruptions, with some countries experiencing delays in vaccine deliveries. To address the global demand for vaccines, manufacturers had to increase their production capacity. Pfizer, for instance, increased its production capacity by 50% in early 2021, while Moderna increased its production by 20%. Governments also had to collaborate to ensure equitable distribution of vaccines worldwide. The World Health Organization (WHO) established the COVAX initiative, which aimed to distribute vaccines to low-income countries. The initiative involved collaboration between governments, manufacturers, and organizations such as Gavi, the Vaccine Alliance, and the Coalition for Epidemic Preparedness Innovations (CEPI).

Besides The challenges mentioned above, there were other significant hurdles in managing the COVID-9 vaccine supply chain. One such challenge was the regulatory approval process. The vaccines had to undergo rigorous testing and approval by regulatory bodies, including the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA) (Xu et al., 2020). The approval process required extensive data on the vaccine’s safety and efficacy, which was a time-consuming and complex process. Any delay in the approval process affected vaccine delivery, leading to shortages and delays. To address the regulatory approval challenge, manufacturers had to collaborate with regulatory bodies to ensure a smooth approval process. For instance, Pfizer and BioNTech worked closely with regulatory bodies to provide data on the vaccine’s safety and efficacy(Xu et al., 2020). The US FDA and the EMA granted emergency use authorization for the Pfizer vaccine in December 2020, allowing the vaccine’s distribution to begin immediately.

Additionally, Another challenge was the need for coordination and collaboration between different stakeholders involved in the supply chain. The development and distribution of vaccines required collaboration between manufacturers, governments, logistics companies, and healthcare providers(Alam et al., 2021). Any breakdown in communication or coordination could lead to delays in delivery and vaccine wastage. The coordination challenge was further exacerbated by the global nature of the pandemic, with different countries implementing different strategies and policies.To address the coordination challenge, stakeholders had to establish clear communication channels and protocols. Manufacturers had to work closely with governments and logistics companies to ensure efficient delivery of vaccines. Governments had to coordinate with healthcare providers to ensure the vaccine’s distribution to priority groups. The WHO established a technical advisory group on vaccine introduction to provide guidance on vaccine distribution and deployment.

The challenge of vaccine hesitancy also affected vaccine supply chain management. Vaccine hesitancy refers to the reluctance or refusal to vaccinate despite the availability of vaccines. Vaccine hesitancy was fueled by misinformation and mistrust of the vaccine’s safety and efficacy(Alam et al., 2021). Vaccine hesitancy led to a lower uptake of vaccines, which affected vaccine distribution and delivery.To address vaccine hesitancy, governments had to engage in public education campaigns to provide accurate information on the vaccine’s safety and efficacy(Alam et al., 2021). Governments also had to establish trust with communities and address their concerns about the vaccine. Healthcare providers had to provide accurate information on the vaccine to patients and address any concerns they may have had.

Managing the COVID-19 vaccine supply chain was a complex and challenging process, requiring collaboration between different stakeholders and addressing various challenges, including the shortage of raw materials, logistical issues, global demand for vaccines, regulatory approval, coordination, and vaccine hesitancy. The successful management of the COVID-19 vaccine supply chain provides valuable lessons on effective supply chain management in the face of unprecedented challenges. The lessons learned can be applied to other industries to ensure continued success.

Acceptability, affordability and distribution at both individual and country elvel is a challenge in the vacciines supply chain. Development of the vaccine so fast was a challenge to the health sector since it also needed to be effective and safe to the individuals. Again, not all people could afford the vaccines since it was a pandemic affecting everyone and WHO could not supply it for free. For example, Opwrtaions Warp Speed program was the program in the US set to develop the required vaccine(Yarlagadda et al., 2022). Most of the countries had to cater for both production and cquiation hence ended up spending billions of dollars in the supply chain. Low-income countries then had to suffer since they could not afford the charges for the process(Yarlagadda et al., 2022). For example, The COVID-19 Vaccine Global Access ( COVAX) did not allocate or procure vaccines for the undeveloped countries.

Several strategies are suitable to mitigate these challenges that COVID 19 vaccine has. These strategies are based on the challenges as mentioned above. One of the primary strategy and known to have aided in solving the challenge of affordability is setting funds for the supply chain process of the vaccine, Forinstance oon the challenge of affordability and distribution of these vaccines to low-middle-income countries, both Serum institute of India and AstraZeneca collaborated and supplied the vaccine oto these countries.

Funds and forces such as African Vaccine Acquisition Task Team amd PM Cares Funs in india were set up purposely to ensure that the required vaccines were developed. Ensuring that these poor countries have access to funding and vaccines can help them fight the pandei=mmic with the help of international organizations such as WHO. these organizations can hep the countriels have the best strategies too depending on their challenges.

Developing an advanced supply chain plan is essential in challenges mitigation too. Since the demand of the vaccine is likely to remain high, it’s the duty of the companies producing the vaccines to ensure the chain is improved. The companies should as well ensure there is real-time data insight and data analysis in the supply chain(Read, 2023). Such strategies will help in identifying demands such as fundings.

Provision of cold chain equipment can highly solve transit challenges. The vaccine requires quality and reliable equipments during the supply process. Vaccines need to be transported at certain temperatures, sensors and adhering to vaccination standards(Read, 2023). The plan of having this equipment in the process can greatly solve the challenge of transportation.

Lastly, last mile delivery is an essential strategy in solving the above challenges. It is considered as the most challenging stage in the process of vaccination(Read, 2023). Ensuring that all the vaccines are well tracked after being shipped to the facilities is primary in solving these challenges. The vaccines should then have barcodes that can be tracked after delivery.

Alam, S. T., Ahmed, S., Ali, S. M., Sarker, S., Kabir, G., & Ul-Islam, A. (2021, September). Challenges to covid-19 vaccine supply chain: Implications for sustainable development goals . International journal of production economics. Retrieved March 16, 2023, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8184405/

Read, T. (2023, February 4). How to overcome vaccine supply chain challenges . Agistix. Retrieved March 16, 2023, from https://www.agistix.com/blog/how-to-overcome-vaccine-supply-chain-challenges/

Roy. (2018, June 16). Covid-19 and the Vaccine Supply Chain . Willis Towers Watson. Retrieved March 16, 2023, from https://www.wtwco.com/en-VN/Insights/2021/02/covid-19-and-the-vaccine-supply-chain

Xu, W., Xiong, S., & Proverbs, D. (2020, July 10). Evaluating Agricultural Food Supply Chain Resilience in the context of the COVID-19 pandemic . International Journal of Information Systems and Supply Chain Management (IJISSCM). Retrieved March 16, 2023, from https://doi.org/10.4018/ijisscm.287132

Yarlagadda, H., Patel, M. A., Gupta, V., Bansal, T., Upadhyay, S., Shaheen, N., & Jain, R. (2022, April 8). Covid-19 vaccine challenges in developing and developed countries . Cureus. Retrieved March 16, 2023, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9085716/#:~:text=The%20challenges%20that%20arise%20with,level%20and%20an%20individual%20level.

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Essays on Supply Chain Management

Writing an essay on Supply Chain Management is important because it allows students to explore and understand the complexities of managing the flow of goods and services from the point of origin to the point of consumption. It provides an opportunity to delve into the various aspects of supply chain management such as logistics, procurement, production, and distribution, and to gain a deeper understanding of the challenges and opportunities in this field.

When writing an essay on Supply Chain Management, it is important to conduct thorough research and gather relevant data and information to support your arguments and analysis. This may involve studying case studies, industry reports, and academic journals to gain insights into real-world practices and trends in supply chain management.

It is also crucial to structure your essay in a logical and coherent manner, with a clear , body, and . This will help to present your ideas and analysis in a systematic and organized fashion, making it easier for the reader to follow your arguments.

Furthermore, it is important to use clear and concise language, and to avoid jargon and overly technical terms that may confuse the reader. Clearly define any specialized terms or concepts that are essential to understanding your essay, and provide examples to illustrate your points.

Finally, when writing an essay on Supply Chain Management, it is important to critically evaluate the theories and practices in the field, and to offer your own insights and perspectives. This will demonstrate your critical thinking and analytical skills, and contribute to the academic discourse on supply chain management.

The role of supply chain management in enhancing business performance

The impact of globalization on supply chain management

Sustainable supply chain management practices

The role of technology in transforming supply chain management

The impact of supply chain disruptions on business continuity

The role of supply chain collaboration in enhancing performance

The integration of ethical considerations in supply chain management

The role of supply chain resilience in mitigating risks

The impact of e-commerce on supply chain management

The future of supply chain management in the digital age

Supply chain management is a complex and critical function for businesses, and there are many interesting and important topics to explore in this field. From the impact of globalization and technology to the importance of sustainability and resilience, supply chain management offers a wide range of essay topics that are relevant to the current and future needs of businesses.

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Supply Chain Management in the Modern World Essay

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Supply chain management in the modern world demands a new approach towards shipping not only to reduce production costs but also to be reasonable in terms of fuel expenditure. Indeed, “do not ship air” and “do not ship water” are now the foundational principles of many successful businesses. These ideas indicate the need to organize product transportation so that there will be minimum or no empty space and unnecessary items will not be placed. The essential elements of Porter’s value chain, which views business activities in systems, are inbound and outbound logistics as well as internal operations (Mind Tools, n.d.). The logistics part ensures that the storage and transportation of raw items and ready products are performed in the most efficient way (Mind Tools, n.d.). It means that the maximum number of required commodities should be sent in one delivery.

The same logistics and organization principles used nowadays were relevant in the past. One such example is the Silk Road, which was one of the major supply chains and cultural exchange sites of the ancient and medieval world (Coates, 2012). Specifically, merchants and agents sold various valuable products along the road or delivered them to foreign states (Coates, 2012). Since transportation took a relatively long time during that period, people strived to utilize the available space effectively. If individual merchants had to consider practical packing, the leaders of caravans were obliged to think about the safest routes and transportation methods (Mhugos, 2019). For instance, they had to choose camels wisely depending on the climate of the places they traversed (Mhugos, 2019). Overall, the supply chain management of the past and present have many common features, especially regarding the wise use of space and routes.

Coates, R. (2012). The Silk Road – The first global supply chain . Supply Chain. Web.

Mhugos. (2019). Ancient Silk Road – First global supply chain . SCM Global. Web.

Mind Tools. (n.d.). Porter’s value chain . Web.

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Redefining the Supply Chain: Embracing Sustainability, Resilience, and Efficiency in a New Era

In an era marked by global disruptions, the fragility of supply chains has been starkly revealed. Pandemics, geopolitical tensions, natural disasters, and climate emergencies have not only exposed weaknesses but have also sparked a wave of innovation and strategic evolution. As McKinsey notes , supply chain leaders are now vested with both the attention of top management and a mandate for tangible change.

This pivotal moment offers an opportunity to future-proof supply chains by marrying sustainability, resilience, and efficiency with traditional values of cost, quality, and service. The upward trend in supply chain sustainability importance, as observed in MIT’s Center for Transportation and Logistics 2022 State of Supply Chain Sustainability report, underscores a collective awakening to new priorities amidst shifting challenges.

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The article 5 Supply Chain Trends by Robert J, Trent is an accurate representation of the emerging trends in Logistics Management. According to the author, supply chain professionalism is constantly evolving (Trent, 2017). For example, in a supply chain, once-cost managers are now responsible for stakeholder relationship management, risk management,...

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Tesla’s Supply Chain Management

Introduction.

Tesla, Inc. is one of the leading manufacturers of electric vehicles, battery cells, and energy solutions. The company aims at building a complete vertically integrated production system to ensure an undisrupted supply chain management and product delivery to its customers (Tesla, 2021). Since its establishment in 2003, the organization managed to build facilities in several locations producing cars, batteries, as well as such products as Powerwall, Powerpack, and Solar Roof (Tesla, 2021).

The core of the technologies exploited by Tesla is lithium-based cells, and the organization has direct ties with lithium producers in different parts of the world (but mainly in Africa and Asia) (Olivetti et al., 2017). The company is famous for its innovative approach to the car manufacturing business with its vertical integration and direct sales to customers.

Tesla Supply Chain

The backbone of the company’s supply chain management is its focus on vertical integration, so the vast majority of Tesla’s suppliers are Tier 1 suppliers (see Figure 1). The organization under discussion collaborates with diverse companies providing materials to its manufacturing facilities (with major facilities located in the USA and China) (Naor, Coman and Wiznizer, 2021). One of the major strategies the company has used to reduce costs and lower down prices has been the design and production of batteries (Gianesello, Ivanov and Battini, 2017). This approach has translated into the company’s major competitive advantage, making Tesla cars expensive but still affordable.

The company is committed to the development of sustainable relationships with its suppliers to build a resilient supply chain. At present, a larger part of suppliers is US-based (40%), while 30% are located in China, Japan, and Switzerland (Wu and Yang, 2017). The rest of Tesla’s suppliers are located in different parts of the world (mainly Africa and Asia). Tesla attempts to encourage its suppliers to establish sustainable practices and often qualifies some of its partners providing certification (Wu and Yang, 2017). The organization has clear policies that are developed for suppliers who have to comply with high standards regarding environmental aspects and labor force factors.

As far as sales policies are concerned, Tesla is famous for its Silicon-valley approach as it does not collaborate with distributors but sells directly to customers. This strategy has both advantages and downsides, but it, by all means, makes the organization stand out (Wu and Yang, 2017). On the one hand, this strategy enables Tesla to control prices and lower them down while developing close ties with customers.

On the other hand, the company has to face litigation issues in some states as Tesla sales are banned in some parts of the USA. Online sales have become another innovation Tesla has tried to employ to win a larger market share. Service centers and collection points, as well as recycling facilities, are important elements of the company’s supply chain, making Tesla an innovative car manufacturer with arrays of loyal customers across the globe (see Figure 2).

Electric Vehicle Industry Challenges

Tesla’s supply chain is rather resilient, and its vertical integration helps the company address potential disruptions. In some cases, these efforts are characterized by limited effectiveness. One of the major challenges the automotive industry (as well as the vast majority of industries) faced was the COVID-related restrictions (Cavaliere, 2021; Naor, Coman and Wiznizer, 2021).

The lockdowns countries chose as their response to the pandemic had adverse effects on the automotive industry. Electric vehicle production turned out specifically vulnerable due to the disruptions in lithium supplies. Car manufacturers and battery producers were unable to satisfy the existing demand as lithium suppliers had to halt their operations and needed time to retain their functioning. The industry has not recovered yet, and researchers note that more time will be needed to address the outcomes of lockdowns (Cavaliere, 2021). The supplies of other materials also suffered, but the associated supply disruptions did not have such detrimental effects on the industry.

In addition to the severe shock linked to the pandemic, the industry still faces its traditional challenges. The capacity of batteries remains one of the basic issues manufacturers are trying to address, as this factor has a considerable effect on purchasing decisions (Gianesello, Ivanov and Battini, 2017). Tesla cars are popular for their powerful batteries and luxury design. At that, the company is still trying to enhance its batteries capacity so that their (and other manufacturers’) electric cars could compete effectively with fueled vehicles.

At present, the latter is still faster and have an almost limitless range as the infrastructure is highly developed in all countries of the world. The networks of gas stations enable drivers to access almost any location in the world (as drivers can also bring fuel in tanks). These options are still unavailable to electric vehicles with quite underdeveloped infrastructures of recharging points and limited battery capacities.

Technological and Data Driven Supply Chain Communication and Information Requirements in Electric Vehicle Industry

Innovation is one of the primary features of the electric vehicles industry, so communication and information management play an essential role in organizations’ life cycles. Companies have to ensure proper analysis and management of big data to ensure the effectiveness of their supply chain. Producers utilize numerous applications and software products to manage big data and ensure the most effective use of resources. Blockchain technology is gaining momentum due to its focus on transparency and reliability. This technology is attractive to electric vehicle manufacturers because they can optimize their inventory flow (Raj Kumar Reddy et al., 2021). Blockchain technology is instrumental in building networks of reliable multi-tier suppliers and partners.

The automotive industry also benefits from the use of various software tools, such as simulations or decision-making facilitators (Gianesello, Ivanov and Battini, 2017). For instance, managers often try to forecast the availability of resources and potential disruptions. As far as communication is concerned, companies choose among a variety of applications. They use corporate information systems to ensure that internal communication is safe (Raj Kumar Reddy et al., 2021). Communication with partners also occurs with the use of safe channels and corporate information systems. Companies need to access certain databases and information systems to manage the flow of their inventory. The instant interchange of data is critical, which has become evident in the post-COVID business world.

Disruptions in the flow of materials and resources lead to major challenges in supply chain management, which can be illustrated by the current situation with battery production. The shortage of lithium has led to delays and companies’ inability to satisfy market demand (Cavaliere, 2021). The industry has undergone a number of shocks between 2020 and 2021 related to the maintenance of proper communication and interaction patterns with partners. Slow recovery is apparent, but many suppliers left the market, which made automotive producers develop new business ties.

Supply Chain Effectiveness Assessment

To evaluate a company’s progress and ensure its sustainable development, it is possible to utilize diverse assessment instruments. A balanced scorecard is one of the tools managers utilize to estimate whether their organizations perform well and manage to attain the established goals (Pearce II, Robinson and Mital, 2018). This measurement helps companies to identify weaknesses in the operations, improve their functioning, and ensure the achievement of strategic goals. The focus is on such areas as financial performance, internal business processes, learning, and customer service.

• Vision: Tesla aims at accelerating the “world’s transition to sustainable energy” (Tesla, Inc., 2021, p. 4).
• Strategy: Tesla’s strategy is characterized by a vertically integrated business model and a focus on user experience.

Based on the analysis of the balanced scorecard, it is possible to assume that Tesla is characterized by high performance and high potential to grow further. The company is one of the leaders in the market of electric vehicles in the United States, as its market share reached 72% of the U. S. electric vehicle market in April 2021 (Kay, 2021). Hence, the target of an 80-percent-share is attainable, making the organization’s supply chain strategy effective. The establishment of a Texas-based facility will have a positive impact on Tesla’s growth and enables the company to increase its market share through higher sales.

The new facility will also contribute to lowering down the costs that are planned to go down to $25,000. This goal has not been achieved yet, revealing some weaknesses of the existing strategy. The reduction of production costs can be instrumental in achieving this objective.

Overall, it is possible to conclude that the company’s supply chain management strategies are effective and instrumental in achieving the established goals. The company develops close relationships with multiple suppliers across the globe to reduce costs and ensure the undisrupted delivery of vehicles and inventory. The construction of several major facilities in diverse geographic locations is also an effective strategy that can ensure the reduction of costs. The focus on staff training and a wide range of internship programs can contribute to enhancing the overall performance of each employee, each team, and the entire organization.

However, some gaps are yet to be addressed for the sustainable development of the company. Tesla should invest more in innovations as it should improve its batteries capacity and reduce vehicles’ prices to win a larger market share. This can be attained by using more efficient processes and more functional materials.

Recommendations

Stakeholders’ engagement.

To address the weaknesses of the existing supply chain, Tesla should implement a number of strategies. The engagement of stakeholders in the supply chain operations is efficient but can be improved. As mentioned above, the company has Tier 1 and Tier 2 suppliers, although the latter are not numerous (see Figure 3). Moreover, suppliers (Tier 2) provide resources to Tesla, thus, becoming Tier-1 suppliers. Further vertical integration is important as it can minimize disruptions and reduce costs, which are critical goals for the company’s development (Pearce II, Robinson and Mital, 2018).

These stakeholders can also be engaged in recycling incentives, becoming a part of the corresponding cycle. After the recycling of some products, the produced raw materials can be sent to suppliers and Tesla manufacturing facilities. This strategy can contribute to achieving Tesla’s objectives regarding sustainability enhancement. The company articulates its commitment to a higher level of sustainability and reducing its environmental footprint. Recycling is one of the effective methods to attain this goal. Further investment into innovations will be needed to ensure the creation of the necessary technologies and approaches.

Participation in various sustainability projects, collaboration with local communities and authorities, and the issue of effective policies can be instrumental in enhancing stakeholders’ engagement. The company develops policies that encourage its partners to become more environmentally responsible (Tesla, Inc., 2021). The organization’s collaboration with local communities and authorities has proved to be effective as it has led to positive changes for the environment and the creation of a positive image of the company. The involvement of Tesla’s partners in such projects can make their outcomes more far-reaching and their effects more lasting.

Relationship Management

Relationship management is essential for maintaining proper links with customers and partners. Cross-sales can be utilized as a strategy to enhance the collaboration between Tesla and its customers and partners. Cross-selling involves the provision of additional products and services to other stakeholders (Pearce II, Robinson and Mital, 2018). The provision of recycling services can be seen as one of the forms of this collaboration.

Tesla offers its customers to recycle cars and components (with the focus on batteries), but these incentives can be further developed. Partners can also be engaged more effectively as participation in such projects can improve their image and help them gain certain benefits related to compliance with higher standards. The close interaction with authorities can be an important premise for the effective use of this strategy. The creation of the infrastructure to deliver components to recycling facilities is an illustration of the area for close partnerships with Tesla’s suppliers.

Counteracting the Challenges in the Electric Vehicles Industry

As mentioned above, the COVID pandemic unveiled some of the weaknesses of the existing supply chain management in the electric vehicles industry. Companies appeared to be vulnerable to the supplies of such vital raw materials as lithium (Cavaliere, 2021). Hence, it is essential to ensure the availability of such critical resources. Again, vertical integration is one of the ways to address this issue as internal policies and infrastructures can assist in building resilience to raw material supply disruptions (Wu and Yang, 2017). The company can better accommodate to potential restrictions and limitations as controlling internal processes and operations can be implemented while the collaboration with multiple partners is associated with higher risks.

To address another challenge typical of the industry, Tesla needs to develop close partnerships with other organizations working on increasing the capacity of batteries. This strategy has proved to be effective as the collaboration between Tesla and Panasonic has led to the development of innovative products and considerable advancements in the area of battery production (Wu and Yang, 2017). The car manufacturer should continue developing such relations and implement various incentives and projects with other organizations.

The focus should be on innovation and sustainability, which will have a positive impact on stakeholders, as well as the entire industry. Electric vehicles are still less attractive due to their limited range, so the creation of more powerful and reliable batteries, as well as the introduction of other innovations, will be beneficial for all companies operating in the industry. The cooperation with authorities related to infrastructural projects is another effective strategy to implement. The creation of effective networks of recharging points across diverse geographic locations is an important step, leading to the evolvement of the industry.

Supply Chain Communication and Information Requirements

The latest developments in communication technologies offer multiple opportunities to electric vehicle manufacturers. One of the opportunities Tesla can benefit from is the use of blockchain technology. This IT advancement can help Tesla in locating and building proper relationships with suppliers and other partners. As mentioned above, the minimization of the risk of supplies disruptions is one of the central goals, so companies need to have detailed background information about their partners.

Tesla should incorporate blockchain technologies to choose the most reliable suppliers, which is specifically important with raw materials providers (Raj Kumar Reddy et al., 2021). Blockchain technology is associated with transparency and reliability, which can help make evidence-based choices regarding partnerships.

It can be advisable to use the latest applications to facilitate the decision-making process. Various software products are now available to manage communication internally and externally, so companies can benefit from the use of the most advanced information systems that are safe and efficient (Pearce II, Robinson and Mital, 2018). Tesla needs to keep in touch with various companies of different sizes. The level of integration and collaboration also differs, which has to be considered when making decisions, regarding the use of a communication channel.

Communication with customers is also an important aspect related to supply chain management. Tesla pays specific attention to this area as the satisfaction of customer’s needs is a part of the company’s mission (Tesla, Inc., 2021). The organization (as well as its leader) is active on various social networks, which is essential for developing rapport through a high level of transparency and openness.

Tesla’s communication with customers during the pandemic and in the post-COVID environment was instrumental in enhancing clients’ loyalty and attracting new customers. It can be recommended to adhere to this approach and continue being an active communicator via social networks. This communication channel has become an integral part of human life in the modern world, so the company can articulate its messages effectively using this channel.

Supply Chain Strategy

Based on the analysis of Tesla’s performance, it is possible to identify the major challenges the organization has to face. One of the goals for the organization under consideration is to retain the leading position in the market of electric vehicles, where competition is steadily intensifying. One of the operational objectives to attain is associated with the number of deliveries as the company is still struggling with implementing its plan of 500,000 deliveries. Tesla’s establishment of two new facilities located in the United States and Europe is one of the effective strategies to address the issue. These facilities will ensure the company’s presence in the American ad European market and contribute to the rise of sales.

At the same time, it can be advisable to utilize the Six Sigma approach to manage supply chain operations. It is vital to identify the most vulnerable aspects of the production process and the existing supply chain operations (Pearce II, Robinson and Mital, 2018). The chosen solutions should become the basics of the new facility’s functioning. Planning and effective implementation are central to the effective implementation of this strategy. Further investment into innovations and the development of new solutions is also necessary.

In conclusion, it is possible to note that Tesla remains one of the leaders in the industry of electric vehicles, but it should constantly evolve and develop innovative strategies to retain this status. The company has faced certain losses and challenges related to the COVID pandemic and growing competition in the field. The market is becoming more competitive, so it is important to ensure the use of effective supply chain management instruments. Tesla aims at increasing the number of delivered vehicles and the reduction of its products’ price. The opening of gigantic facilities, the use of efficient software facilitating supply chain management and relationship management, and being active on social networks are instrumental in achieving the set goals. Tesla should invest into innovation to come up with new products and services.

Reference List

Cavaliere, V. (2021). ‘ Elon Musk says Tesla prices are increasing because of supply chain disruptions across the auto industry ’. Insider . Web.

Gianesello, P., Ivanov, D. and Battini, D. (2017). ‘Developing a blockchain framework for the automotive supply chain: a systematic review’, International Journal of Inventory Research , 4(4), pp. 257-280.

Kay, G. (2021). ‘ Tesla’s global market share fell to its lowest level in over 2 years as electric car competition heats up ’. Insider . Web.

Naor, M., Coman, A., and Wiznizer, A. (2021). ‘Vertically integrated supply chain of batteries, electric vehicles, and charging infrastructure: a review of three milestone projects from theory of constraints perspective’, Sustainability , 13, 1-21.

Olivetti, E., Ceder, G., Gaustad, G. and Fu, X. (2017). ‘Lithium-ion battery supply chain considerations: analysis of potential bottlenecks in critical metals’, Joule , 1(2), pp. 229-243.

Pearce II, J. A., Robinson, R. B. and Mital, A. (2018). Strategic management: planning for domestic and global competition . 14th edn. New York, NY: McGraw-Hill Education.

Raj Kumar Reddy, K., Gunasekaran, A., Kalpana, P., Raja Sreedharan, V. and Arvind Kumar, S. (2021). ‘Developing a blockchain framework for the automotive supply chain: a systematic review’, Computers & Industrial Engineering , 157, pp. 1-14.

Tesla. (2021) About Tesla . Web.

Tesla, Inc. (2021) Annual report on form 10-k for the year ended December 31, 2020 . Web.

Wu, L. and Yang, W. (2017) ‘Tackling supply chain challenges of Tesla Model 3’, Operations Management Education Review , 11(1), pp. 5-34.

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Managing Supply Chain Management

Introduction.

The process of production in the modern world involves numerous concerns. One of these concerns is organizing the logistics of raw materials and goods. These operations are considered parts of the supply chain. In our paper, we will examine supply chain management (SCM) and consider some aspects that should be kept in mind when dealing with supply chains.

The supply chain is a crucial part of any business. Proper SCM can provide businesses with numerous competitive advantages, the most obvious of which is the advantage of time and cost. Choosing a dependable supplier of high-quality raw materials is also of major importance. Customers who receive high-quality products fast eventually create a positive reputation for the company. This is why a very popular practice in the modern world of business is to document its supply chain and make it publicly available, or even use it as an advertisement. A good reputation attracts new clients, and also makes the business interesting for investors (CSR Compass n.d.). Moreover, the business, having a favorable reputation, becomes a desired workplace, which means an abundance of qualified human resources. These factors ensure the company’s functioning and development in the future. Thus, proper SCM can bring a competitive advantage concerning the time and money spent on the product, the firm’s reputation, and, as a result, the general efficacy of the business (Seghal, 2011).

Financial innovation is a key element in maintaining and improving supply chains. C. Dwight Klappich, as cited by Poirier, Quinn, and Swink (2010), states that supply chains are “three-legged stools”, and the legs of these stools are “product, information, and finance”; these three elements of the supply chain should be synchronized (p. 55). Poirier et al. (2010) provide an example of a multibillion-dollar corporation, which, having carefully analyzed the actions of its SCM, was able to conclude that a third of all the actions that were taken could be disposed of, as they had hardly any effect. The execution of a new plan which emerged as the result of the analysis was enough to double the company’s earnings for each share (p. 71-73). Authors, thus, promote close “collaboration between the supply chain and the financial groups”, as well as stress the role of the financial leaders of a company in employing innovations (Poirier et al., 2010, p. 73). Mention and Torkkeli (2014) also emphasize that innovation is only successfully implemented by executives who greet change and can turn it into profit for their organization.

As was already mentioned, a reliable supplier of raw materials is essential for any supply chain. Thus, strategic sourcing, a procurement process that unceasingly tries to reassess and upgrade the organization’s buying activity, might be considered an important element of any SCM. Being a part of the financial management, strategic sourcing aims to choose the best supplies available and to ensure that the process of production is planned and provided with the necessary components far in advance. Strategic sourcing also involves monitoring the suppliers’ activity as well as leveraging the company’s spending. The results of strategic sourcing are lower cost and better quality of the rendered services. It also maintains and enhances the production efficacy of a company (Maromonte, 2008).

As can be seen, in the modern global world of business, supply chains are becoming exceedingly advanced, and often rivalry emerges among them (Zhang & Okoroafo, 2015). This results in demand for highly qualified SCM which can successfully operate in such circumstances. Thus, Zhang and Okoroafo (2015) recommend employing third-party logistics (3PL). 3PL provides a vast number of benefits for a business. Its four main basic features are proficiencies in range, expertise, search capability, and information technology. 3PL, thus, takes the responsibility for and thoroughly resolves the complications of gathering, covering, storing, and delivering goods (Zhang & Okoroafo, 2015). The consequences of 3PL are decreasing expenditures of the supply chain and the disposal of the consumption of its time resources.

Let us now consider a simple example of a supply chain familiar virtually to everyone. To install new windows in your family’s apartment, your family can dismount the old ones, go to a windows factory or a retail outlet and buy a set of windows, transport them to the apartment, and find people to put them in. This would involve a large number of operations related to gathering information, choosing the necessary product, finding workers, and even organizing finances while deciding which people to hire, what shop to buy from, etc. Another option is turning to a firm that specializes in installing windows. The firm here will partially play the role of 3PL. It will give you options to choose from (probably more options than you could have found yourself, as it is easier for firms than for natural persons to e.g. buy something from foreign companies), and will organize the necessary actions needed to install new windows. The firm will quite likely give you a warranty as well. Thus, by turning to the windows firm, which, to a certain extent, plays the role of 3PL, you will save time. You will possibly economize some money, because it is easier for the firm to organize everything economically, and in case of problems you will be compensated according to the warranty.

As we have seen, SCM is a crucial part of any business, as it maintains its functioning, and attracts customers and investors. Financial innovations are important for making SCM efficient and can economize vast amounts of money for a company. If a business chooses to manage its supply chains on its own, it should not be forgotten that strategic sourcing results in lower cost and better quality of the company’s products. And, finally, 3PL can be a good, economical option for modern companies.

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Zhang, H., & Okoroafo, S. C. (2015). Third-party logistics (3PL) and supply chain performance in the Chinese market: A conceptual framework. Engineering Management Research , 4 (1), 38-48.

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