Supply Chain Management Report: Analysis for BathKing Industries

This report provides an analysis of the supply chain management for BathKing Industries, focusing on the challenges and opportunities within their current operations. The report addresses the logistic services and cost constraints imposed by BKI, specifically highlighting the impact of Radio Frequency Identification (RFID) and the need for improved inventory visibility. It also discusses the potential of opening a series of company-owned Regional Distribution Centers (RDCs) to enhance efficiency and reduce costs. The report explores the optimal facility ownership structure, recommending a Limited Liability Company (LLC) to limit personal liability and attract investment. The report includes references to academic resources that support the analysis. The report concludes by providing a process map for product and information flow.

INTEGRATED SUPPLY
CHAIN MANAGEMENT
BathKing Industries

Introduction
The supply chain management is essential
required for growth of company and its
development. The Bathking Industry is engaged
in producing high quality bathroom accessories
made out of plastics. The growth of the
company is largely attributed to it's chain supply
store partners.

1. The logistic services and cost constraints imposed by BKI
The logistic service of BathKing Industries comprises
supplying to retail chain stores that contribute to 80% of
sales of the company.
• The Radio Frequency identification initiative that
company needs to comply will definitely add to the
additional expenditure to the finances.
• Advance shipping notification and improvement in
the inventory visibility is essential requirements by
supply chain holders.

• Chain stores also need a reduction in cycle time of
shipping orders. This will put pressure on the already
existing logistic services that delivers order in five
working days.
• The new demand by retail chain will lead to increase
in the processing and freight cost.
• Cost constraints will lead to processing of smaller
orders since the truckload services will lead to
additional Costs to the company.

2. Opinion on proposal for opening series
of company owned RDC
In my opinion the proposal for opening series of company
owned RDC essentially economical step.
• This will help in identification of high demand areas
for to products for DC.
• This will enhance the ability of the company for
processing the orders faster and will economize product
delivery which will be cheaper than the present facility.

• Case picking and pallet cross-docking are value added
services which will help in providing efficient services.
• This will also bring about cost efficiency of delivery
process of the products leading to decrease in the
inventory.
• As influenced by Gaur and Delios, (2015), this process
will help in achieving the target date delivery of
products and will cut down on capital expenses.

3. Facility ownership structure
The facility ownership structure that can be imbibed by BKI is
Limited Liability Company.
• This structure will help in limiting the personal liability of the
company for business.
• It will make the company independent of legal rights and
obligation.
• The private limited company ownership will invite investment
opportunities from others who can buy shares of the company
by current approval from owners (Porras Prado et al. 2016).

• The LLC will provide for limited personal liability for
business depth and also claims.
• The LLC can help in minimising the risk of being sued
by RDC and consumer in case of piling of business debt.
• This type of ownership structure will help in providing
opportunities for generating capital for investment
purposes from the investors without creating a burden on
the present owners.

• The organisational structure will also resolve the conflict
arising between company's fundamental motives related
to profit making and mission of the company.
• The purpose of enterprise is more productive and
followers of financially driven models which will help in
achieving profits.
• The governing board of directors is responsible for
directing Strategies and financial oversights (Aguilera
and Crespi-Cladera, 2016).

4. Process map for product and information flow
Company board of
directors
Decisions taken by Logistics and financial
department
Shortlisting of strategic RDC
Supply to strategic RDC

References
Aguilera, R.V. and Crespi-Cladera, R., (2016). Global corporate governance: On
the relevance of firms’ ownership structure. Journal of World Business, 51(1),
pp.50-57.
Porras Prado, M., Saffi, P.A. and Sturgess, J., (2016). Ownership structure, limits
to arbitrage, and stock returns: Evidence from equity lending markets. The
Review of Financial Studies, 29(12), pp.3211-3244.
Gaur, A. and Delios, A., (2015). International diversification of emerging market
firms: The role of ownership structure and group affiliation. Management
International Review, 55(2), pp.235-253.