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Global supply chain management assignment : IKEA

   

Added on  2019-12-03

25 Pages6613 Words192 Views
Global Supply ChainManagement1

TABLE OF CONTENTSINTRODUCTION................................................................................31. Advantages of CPFR to work and OEM customers...........................32. Role of Tier one supplier in safeguarding the quality of final products.......................................................................................................53. EVALUATION OF THE STAIRCASE MODEL OF IKEA FOR SUSTAINABILITY AND APPLICATION IN MAGNA GROUP.................................................73.1 Evaluation of the staircase model of IKEA.................................................73.2 Application of Stair case model in Magna group.......................................84. THE APPLICATION WRAP APPROACH THROGH AUTO PARTS SUPPLIERS AND CAR MANUFACTURERS CAN WORK TOGETHER TO INCREASE THE RECYCLABILITY CARS.......................................................................95. SHARING OF INFORMATION USING TECHNOLOGY IN SUPPLY CHAINS AND SOLVING QUALITYRELATED PROBLEMS.......................................................................11CONCLUSION.................................................................................12REFERENCES..................................................................................132

INTRODUCTIONSupply chain management is considered as a network among diverseorganisations in order to have effective production, work management anddistribution of specific product (Gupta and Boyd, 2008). In other aspect, itcan be stated that any business organisation which uses the services fromanother business organisation of overseas market need to focus on supplychain management. With an effective focus on supply chain managementthe business firms can easy manage the work and overcome issues ineffective manner. Logistics is considered as one of most significant andcritical section of supply chain management. It provide great level ofassistance in functions and activities which relates with the production anddelivery of product or service from supplier to client. Moreover, global supplychain management focuses on integrated work which can provide easyaccessibility to resources, processes, delivery system in order to meet theneeds of end customers. In this report, learning will focus on various advantages of CPFR towork with their OEM customers in order to accomplish performancestandards. It will also provide information regarding role of a tier 1 supplier insafeguarding the quality of final products. It will also focus on effectiveevaluation and application of staircase model for better sustainability incompetitive market. Furthermore, it will also focus on use of technology inorder to resolve the issues regarding quality in context of supply chain. Page | 3

1. ADVANTAGES OF CPFR TO WORK AND OEM CUSTOMERSMagna international Inc. is auto mobile supplier firm which operates itsbusiness from Canada. Organisation is considered as a one of largest auto-mobile parts manufacturer which provides original parts to its customers(Karlsson and Voss, 2009). Company supplies number parts to variouscompanies within auto mobile industry. In this respect, it is necessary formanagement of Magna to ensure that they have effective supply chainmanagement and original equipment is delivered to its partners orcustomers. In the support of this, it can be said that the management ofMagna can focus on CPFR process model in order to boost the effectivenessof its supply chain management. Illustration 1: CPFR ModelPage | 4

It has been spotted that the CPFR model is adopted by number ofcompanies in all over the world. It is considered as a standard process modelwhich provides number of benefits to business organisations by improvingwork conditions in context of varied factors related to supply chain (Petersen,Aase and Heiser, 2011). With an assistance of this process the managementof Magna can effectively develop its supply chain management byconcentrating on customers. In this, supplier and client can also havecollective working at every level which is beneficial for improvement inorganisational performance. Moreover, it also provides joint forecasting andorder planning the management of Magna can reduce number of risk withinsupply chain which is advantageous for better production of auto-mobileparts and its distribution. In this support, it can be said that the time andquantity of physical flow within supply chain management of Magna can alsobe synchronized among all parties (Watson, Lewis and Cacioppi, 2012). CPFR will provide great opportunity to work in collective manner withits OEM customers and make them understand about customer needs foreffective production of auto mobile parts in order to accomplish needs. OEMcustomers of Magna demands delivery of original equipment or parts indesired time so in order to have effective distribution it is essential formanagement to focus on CPFR. In the support of this, it can be said that thecollaborative planning, forecasting and replenishment are key factors ofCPFR process which improves the supplier/manufacturer relationship in orderto meet the objectives (Russell and Taylor, 2008). With an assistance of CPFR process the management of Magna canbuild strong relations with its OEM customers and manage work incollaborative manner. It will also allow Magna's OEM customers to sharesignificant information with each other and have effective planning in orderto meet the objectives. In other aspect, it can be said that the CPFR is aintegrated supply chain method which have direct positive impact on thePage | 5

efficiency of work and collaborative actions among trading partners in orderto meet the ultimate needs of end customers (Gadde and Hakansson, 2001). Furthermore, with an improved focus on CPFR process themanagement of Magna can have advancement in responsiveness tocustomer demand. It provides decrease in out of stock and shorter cyclesituations which is beneficial for better reliability and responsive supplychain. It will also provide high quality of auto mobile parts to OEM customersand increase the satisfaction level of end customers (Gravetter and Forzano,2006). CPFR is also advantageous for proper allocation of product in thedesired time. Effective allocation/distribution and accessibility of auto-mobileparts to OEM customers will also provide effectiveness to final production ofgoods. For example, the UK car manufacturer firm is using services of Magnathen with an assistance of CPFR Magna can manage its supply chain anddeliver auto-mobile parts to UK car manufacturer in better way. It will alsoboost the production process of UK car manufacturing firm which is beneficialfor both Magna as well as its OEM customers (Martella, Nelson andMarchand-Martella, 2010). Other than this, the CPFR process also provides great accuracy to theforecasting. In this, Magna can have sharing of single forecasting with itssupply chain which boosts the potential and benefits to the efforts of tradingpartners. In the support of this, it can be said that it allows Magna tounderstand the different views of trading partners and market which isbeneficial for effective combination of diverse knowledge in order to attainbetter forecast accuracy (Tse, Chung and Lim, 2011). Moreover, thecoordination between planning and forecasting also reduces the loss in orderto amend the sales. Magna can put right product at right time in the rightplace which is also beneficial for sales and advanced production of end good.Moreover, the CPFR also provides decrease in the safety stock which isalso beneficial better improvement in its inventory system. In other aspect, itcan also be stated that the improvement in inventory system is alsobeneficial for cost reduction (Rotchanakitumnuai, 2013). AccuratePage | 6

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