Supply and Distribution Systems for Bosch: An Analysis

RUNNING HEAD: Supply and distribution systems 0
BOSCH
Supply and distribution systems

Supply and distribution systems 1
Executive summary
The logistics is a part of the supply chain management and deals with the management of the
goods in an efficient manner. Whereas the supply chain management is a broad term and
comprises connection right from suppliers to the end consumers. The improvement in
technology has brought a lot of changes in the modern supply chain management. It is also
evolved as an improvement over the logistics management. It is related to the development of
the new products, marketing and in the delivery of the products to the customers.
The supply chain management controls the flow of goods and services and involves inventory
and warehousing operations. It pertains to design, planning, execution, evaluation and review
of the supply chain activities with the aim of value creation and competitive advantage. This
report defines supply chain issues faced by the Bosch Germany. The optimal supply chain is
designed in order to meet organizational strategies. Further, the implementation plan is
proposed for the supply chain comprising alliances and the agreements with the partners. The
financial impact of the supply chain options is analyzed. Finally, the inventory control
policies are proposed to optimize performance.

Supply and distribution systems 2
Contents
Executive summary............................................................................................................................... 1
Introduction........................................................................................................................................... 3
Supply chain issues to develop a proposal for a supply chain................................................................3
Optimal supply chain.............................................................................................................................4
Implementation plan for the supply chain design..................................................................................6
Analysis of the financial impact of the supply chain options.................................................................7
Inventory control policies to optimise performance...............................................................................8
Conclusion............................................................................................................................................. 9
References........................................................................................................................................... 10

Supply and distribution systems 3
Introduction
A supply chain represents the core standard of the performance. A well-built supply chain
supports expansion, drives customer experience and reduces operational costs. It considers
order processing, outbound schedules, receiving procedures and reverse logistics. It focuses
on the outcomes and external standards. The supply chain management is basically the
process of managing the flow of products from point of origin to the final consumption by the
consumers. This process comprises the marketing, transportation and warehousing channels.
It plays a significant role in the sustainability and the risk management of the process. The
supply chain management process helps in gaining competitive advantage to the company. it
comprises the efforts made by the suppliers in developing and maintaining supply chain to be
effective and economical. The supply chain regulates and manages the production, shipment
and the distribution of the products. The effective supply chain cuts the unnecessary cost and
delivers the products to the customers in a rapid and effective way. This paper has opposed
the issues faced by the Bosch in its supply chain. A framework is also used to regulate a
suitable supply chain for the company. A suitable plan is also suggested for the supply chain.
The financial impacts are also considered of the supply chain and the financial performance is
measured. The inventory control policies have represented effectiveness for the stock items.
Supply chain issues to develop a proposal for a supply chain
Bosch faces supply chain issues on the regular basis. It affects the productivity of the
company. In command to have a strong and productive supply chain, the company needs to
have visibility with the suppliers. The production problems hinder a company to complete the
accomplished targets. The implementation of the new technology on the regular basis has
become a task for Bosch. It has put an influence on the capability layout and on the precision
of the inventory. As a result, it affects the services provided to the customers (Tatoglu,
Bayraktar, Golgeci, Koh, Demirbag & Zaim, 2016). The customers desired to get full
limpidity regarding the evidence about the distribution of goods acquired by them. Due to the
enhanced expectations of the customers, they are less desire to pay for the shipping charges.
On the other side, Bosch faces issues regarding fuel costs. It is one of the severe issues faced
by the company and it affects the distribution and transportation of the products in the global
context. The high costs of the fuel are prospective to upsurge the transportation costs. The
rise in the fuel prices causes mounting surcharges and is added to the rates of the freight. It