Supply Chain Management in Sweden: A Case Study of Hudson Jewelry

This study explores the efficient technologies that companies in Sweden are implementing to increase production ability and improve supply chain management. Using Hudson Jewelry as a case scenario, the study aims to identify factors that contribute to increased efficiency and resource distribution. The study also examines the global diamond supply chain, its push system, and its efficiency for make-to-order and make-to-stock jewelry. Additionally, it investigates the global supply and demand for diamonds, the role of diamond reserves in determining prices, the extent of vertical integration in the diamond supply chain, and the short- and long-term risks in the global diamond supply chains.

Supply chain management

Introduction
Supply chain management is showing the efficient technologies that the companies of
Sweden will be looking to increase their production ability. The study is important in the
sense that it will identify the factors that will be highlighting the increase in the level of
efficiency in their production through the implementation of effective technology. The study
will be highlighting the case scenario of Hudson jewelry and will try to answer some of the
questions that is related with the supply chain management and how the company will be
aiming to increase the indulgence of better technological upgradation that will not only
increase production but also will increase the efficient resource distribution among its labour
and capital. The main aim and objectives of this study is to aim in increasing the development
of better supply chain management so that the company can improve their position in the
market.

Question and answers
Q1. Explain whether the global diamond supply chain a push or pull system, and
whether the global diamond supply chain is an efficient or responsive system for
make-to-order and make-to-stock jewelry. Provide examples to justify your
reasoning.
The global diamond system is the push system that actually changes its dimension
and the supply of the diamond depends on the demand of the customers. Through the
development of global diamond supply chain the supply of the demand will be helpful in
order to increase the demand of the diamond through the efficiency of the supply chain
management. On the other hand companies like Hudson jwellleries will be looking
forward to increase the supply and will be looking to have an impact on the global
demand. The companies will be looking forward for the development of innovative
designs in the manufacturing of the diamond using CAD technology or computer aided
design. The effect of the CAD was found for the development of self design of rings for
the wedding purpose. The presence of global value chain is one of the important for the
development of diamond manufacturing. Stages in the form of exploration, mining, rough
diamonds, polished diamonds and customer jewelry. Generally after a diamond is mined
it takes up to 1.5-3 years to reach the retail store. Supply chain is global since no country
or company performs all the work that are required to bring a diamond to its final place.
About ½ of the raw diamonds are used for the production of oil and gas drill equipment
and metal cutting tools. On the other hand, marketing of the diamonds is one of the
important strategy as DeBeers is one of the important players in the diamond market. The
company is holding 37% market share. Followed by the company ALROSA is a Russian
company that is holding about 30% of market share. On the other hand, Rio Tinto is an
American corporation having more 5% of global market share of diamonds.
About 20-25% of rough diamonds includes size, color, shapes and quality are used
for the in retail value chain and the rest is used for the industrial purpose. It is important
for these companies to indulge the development of the shapes and size of the diamonds. It
has been seen that during great recession, the small diamond cutters and polishers went
out of the market and the big market players claimed the place. Cutting and polishing
costs-per-carat range from about $100 in Antwerp, New York, and Tel Aviv; to $10 to
$50 in India, China, and Thailand. Companies that are dealing with the diamond
merchanting is showing the tenacity to introduce better efficiency in the supply chain
management that has enabled them to establish smooth marketing of the products.

The supply chain management is one of the responsive systems that deals with the
demand of the diamonds depending on the price that is available in the market. Through
the involvement of global marketing power, the companies will be willing to incorporate
better and effective system of administration that will look after the development of the
supply chain. They are mainly dealing with the development of stock jewelry and will be
able to highlight the development of the business in the market.
Q2. Research global supply and demand for diamonds and how they affects prices.
What role do “diamond reserves” (inventory) play in determining prices? Explain.
What do you think the demand-supply curves for diamonds looks like? Try to sketch
it out.
Presence of inventory always affects the development of the price in the diamond
market and is highly valuable for the presence of better innovation in the process that will
definitely looking forward to increase the level of customer satisfaction. This is important
for the purpose of improving the four C-cut, color, carat weight and clarity. Diamond
market is a pure monopolistic market that holds the right for the development of price
charging motives and can create demand.
Q3. Research the extent of vertical integration in the global diamond supply chain.
Provide examples of forward and backward integration and the extent to which this
is practiced in today’s value chain. In this industry, what is the impact of vertical
integration?
Q4. Research short- and long-term risks in the global diamond supply chains and
write a short paper (maximum of 2 pages) defining what these risks are and how
they are mitigated by major diamond producing corporations.

Conclusion