Integrated Supply Chain Management: Alligator Case Study
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This case study discusses the global issues affecting Alligator in the sector of strategic sourcing. It also provides solutions to handle the production of illegal stock done by the contract makers.
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1 Integrated Supply Chain Management: Alligator Case Study Student’s Name Professor’s Name Course Date
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2 Question One Response The motivation that is set behind strategic sourcing is based on the need for accomplishing the extensive reduction of cost as well as minimization of the hazards in the supply chain. Therefore, the assignment of all the vital planning is not performed regularly despite the manner in which the forms of supply chain management contributing to the general objective. In this case, the following might be the most likely issues affecting Alligator on the global scale, which are significant in the area of strategic sourcing. However, before determining the issues, it might be relevant to understand all the relevance affected by the risk factors like the political risks, the trade risks, the economic risk, operations risks as well as geographical risk [1]. In fact, when all these are considered then the primary global issues affecting the company in the sector of strategic sourcing my include: Transportation; this has become a major issue in the global n business environment. In fact, the lead-time ranges from four to twelve month because of the manner in which organizations experience restraints in the global scale on transportation like the stock- outs. Therefore, when this factor is considered, then the re-evaluation of the supplier relationship might be quite necessary. The situation that is created while picking the outsourcing methodology, which is based on make or purchase. The company might happen to confront the confinement in dealing with each item as well as material classification depending on the supply along with qualities spends. The problem of attaining the ideal supplier’s arrangement, which could fulfil the supplier’s prerequisites for each classification of an item. Allegation Problems: In case the allegation issues are solved, the organization might be in a position to attain the reduction of cost along with minimization of supply chain hazard.
3 Question 2 Response Most of the demand forecasts can be considered less than perfect. Hence, the situation cannot be considered unique to Alligators. While considering the quadrant strategy, it is clear that the company could be desired as a low value but with the focus in the high-profit product [2]. In this case, there is a higher chance that the risks would be low in short term and higher on the long-term basis. Hence, the products of Alligator are supposed to be in stock in order to realize the highest level of profits. This would exceed the extra cost of generating the additional inventory. Therefore, the functioning, as well as the design of the supply chain, must focus on ensuring that there is sufficient product that is available in order to meet the possible demand hence minimization of the chances of stock outs [1]. Besides the precise and opportune request, conjecture is essential to the development of the supply chain. Therefore, the conjecture precision is termed as the background of legitimate assignment of assets. In addition to the solution above, a partnership between the suppliers and the customers would increase the precision of the gauge. Furthermore, supplier fast reactions to changes in requests would reduce the effect as well as the cost of the mistakes on the gauge. Question 3 Response It is imperative to note that all strategic sourcing elements are essential; however, I do believe that the ones noted below are more relevant as well as critical for the Alligator improvement. The company has to evaluate the supply sources. This is essential in making sure that the quality of the product is maintained.In this case, the company is in a position to audit all the commercial centers of the suppliers for dangers and opening [3].The second element is the development of a strategic plan. In this case, the top management or rather an administration is at liberty to direct gatherings and discuss the relevancy of minimizing the expenses and hazards[4]. Furthermore, the main strategist might be in a position to investigate the aggressiveness of the suppliers. Finally, improvement of the collaborative
4 process. This can be done through benchmarking as well as tracking of results[5]. In fact, it is the most vital component of the sourcing process that must be focused on. This will offer the administrators the current classification. Question 4 Response In order to handle the production of all the illegal stock done by the contract makers, the following strategies must be put in place. The company should employ a new president of the supply chain who will assess the essential sourcing process hence attempting to reduce all the mistakes. Besides this, the idea of pursuing a legal alternative might be considered, but it is hard to control the manufacturers of illegal or fake products. The only solution is for Alligator to patent protect its production to reduce the risk of illegal products getting to the market[6].
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5 References [1]Jia, F., Orzes, G., Sartor, M. and Nassimbeni, G., 2017. Global sourcing strategy and structure: towards a conceptual framework.International Journal of Operations & Production Management,37(7), pp.840-864. [2]Sandberg, E. (2017). Introducing the paradox theory in logistics and SCM research– examples from a global sourcing context.International Journal of Logistics Research and Applications,20(5), 459-474. [3]Presley, A., Meade, L. and Sarkis, J., 2016, July. A strategic sourcing evaluation methodology for reshoring decisions. InSupply Chain Forum: An International Journal(Vol. 17, No. 3, pp. 156-169). Taylor & Francis. [4]Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on.International Journal of Physical Distribution & Logistics Management,46(1), pp.19-42. [5]Jensen, P.A., 2017. Strategic sourcing and procurement of facilities management services.Journal of Global Operations and Strategic Sourcing,10(2), pp.138-158. [6]Aghion, P., Howitt, P. and Prantl, S., 2015. Patent rights, product market reforms, and innovation.Journal of Economic Growth,20(3), pp.223-262.