This Assignment Is Intended To Help You Build Supply ✓ Solved

This assignment is intended to help you build a supply

This assignment is intended to help you build a supply chain plan/diagram for a new business by analyzing factors that affect sourcing, logistics, metrics, suppliers, and risk. Create a diagram of the supply chain plan using one of the following tools: Excel, PowerPoint, Visio, PictoGram, PDF, or other faculty-approved platform. Write an 875-word analysis of the supply chain. Include the following:

  • Value chain and flow of structure
  • Inputs
  • Outputs, including customer service structure
  • Inventory points and forecasting
  • Sourcing activities
  • Risks
  • Locations
  • Logistics

Cite references to support your assignment. Format your citations according to APA guidelines.

Paper For Above Instructions

In today’s dynamic market environment, developing a robust supply chain is vital for the success of any new business. A well-structured supply chain plan not only optimizes resource allocation but also enhances customer satisfaction and fosters competitiveness. This analysis will explore the essential facets of a supply chain plan, focusing on the value chain, inputs and outputs, sourcing activities, risks, and logistics.

Value Chain and Flow of Structure

The value chain is a systematic approach to understanding the development of competitive advantage by analyzing the specific activities through which firms can create value. According to Porter (1985), the primary activities in the value chain include inbound logistics, operations, outbound logistics, marketing and sales, and service. For a new business, understanding these components is critical to mapping the flow of structure and identifying where value can be added.

Inbound logistics involve all processes related to receiving, warehousing, and inventory management. For instance, establishing efficient partnerships with suppliers is crucial. Operations refer to the transformation processes that convert inputs into outputs, which can include the manufacturing and assembling of products. Outbound logistics encompasses the processes required to get the finished products to the customers, including storage and order fulfillment. The marketing and sales activities aim to promote and sell the product while the service component ensures customer satisfaction through after-sales services (Bowersox et al., 2013).

Inputs and Outputs

The inputs of the supply chain include all resources required for production such as raw materials, labor, equipment, and technology. The outputs of the supply chain consist of the final products delivered to customers, including the customer service structure that supports these operations (Heizer et al., 2016). Additionally, in today's supply chains, customer service is paramount, and it integrates directly with logistics and inventory strategies to meet customer demands efficiently.

Inventory Points and Forecasting

Effective inventory management is a cornerstone of a successful supply chain strategy. By implementing systems to track inventory levels accurately, businesses can minimize holding costs while provisioning enough stock to meet demand. This balancing act is predicated on reliable forecasting, which can be achieved utilizing historical sales data, market trends, and advance analytics (Chopra & Meindl, 2016). Both techniques help predict future demand and adjust inventory levels accordingly.

Sourcing Activities

Sourcing refers to the process of identifying, evaluating, and engaging suppliers for the services or goods needed by the business. It is a critical function within the supply chain that can significantly influence cost and quality. Companies can choose between various sourcing strategies including single or multiple sourcing, nearshoring, and outsourcing (Krajewski et al., 2019). Each approach has its advantages and challenges; for instance, while multiple sourcing can mitigate risk, it may complicate supplier relationship management.

Risks in the Supply Chain

Managing risks in the supply chain involves identifying potential disruptions and developing strategies to mitigate their impacts. Some common risks include supplier failures, natural disasters, geopolitical issues, and market volatility (Christopher, 2016). Businesses must conduct thorough risk assessments and develop contingency plans to ensure continuity. Techniques such as diversifying suppliers, maintaining safety stock, and investing in technology can bolster resilience against such risks.

Locations

The geographical position of a business and its suppliers can greatly influence logistical efficiency and costs. When developing a supply chain plan, it is essential to analyze locations based on factors such as proximity to suppliers, shipping routes, and labor availability. For a new business, choosing the right location can reduce transportation costs and improve service levels (Meng et al., 2017).

Logistics

Logistics encompasses the planning and execution of the flow of goods from the point of origin to the point of consumption. A successful logistics strategy ensures that products are delivered on time and in good condition, directly impacting customer satisfaction (Rushton et al., 2014). Businesses must evaluate transportation options, warehousing needs, and inventory management practices to streamline logistics operations. Technology such as Transportation Management Systems (TMS) can greatly enhance visibility and control across these processes.

Conclusion

Constructing a comprehensive supply chain plan is essential for the success of a new business. By thoroughly analyzing the value chain, input and output structures, inventory management, sourcing, risk factors, locations, and logistics, businesses can develop a strategy that not only meets current challenges but also positions them for future growth. A well-planned supply chain not only reduces costs and risks but also enhances the overall customer experience, ultimately contributing to business success. As such, ongoing evaluation and adjustment of the supply chain strategy will be crucial in adapting to any changes in market conditions or consumer preferences.

References

  • Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management. McGraw-Hill.
  • Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
  • Christopher, M. (2016). Logistics & Supply Chain Management. Pearson Education.
  • Heizer, J. H., Render, B., & Munson, C. (2016). Operations Management. Pearson.
  • Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2019). Operations Management: Process and Supply Chain Management. Pearson.
  • Meng, X., Wang, Y., & Zhao, R. (2017). Exploring the impact of location on supply chain efficiency: A case study. International Journal of Production Research, 55(14), 3950-3964.
  • Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
  • Rushton, A., Croucher, P., & Baker, P. (2014). The Handbook of Logistics and Distribution Management. Kogan Page Publishers.