Supply Chain Analysis and Proposed Model for a Hypothetical Business

This report analyses the supply chain issues faced by a hypothetical business in the apparel and footwear industry. It proposes a new supply chain model to help the company manage its supply chain operations more efficiently. The report covers objectives, technology disrupting fashion, supply chain network, strategic role, current practices, strengths and weaknesses, and the proposed supply chain model.

Running head: SUPPLY CHAIN
Supply Chain
[A Hypothetical Business]
Name of the student:
Name of the university:
Author note:

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Executive summary
This report is based on analysing and illustrating the supply chain issues, which the learner’s
company is facing in recent times. The report starts with objectives set for the future supply
chain model. It briefly covers a few technology that is disrupting the fashion industry. It follows
the supply chain network, which the learner’s company follows. The strategic role and current
practices of the learner’s company is also being mentioned. The report also identifies a few
strengths and weaknesses in the learner’s company. These piece of information are being based
to propose a new supply chain model to the learner’s company.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Objectives....................................................................................................................................3
3. What is disrupting fashion...........................................................................................................3
4. Supply chain network of the business.........................................................................................4
5. Strategic role................................................................................................................................5
6. Current practices in terms of efficiency and effectiveness..........................................................6
Time-based competition..............................................................................................................6
Strategic Lead Time Management...........................................................................................7
Suppliers Relationship Management.......................................................................................8
7. Strengths and Weaknesses...........................................................................................................8
Strengths......................................................................................................................................8
Weaknesses..................................................................................................................................9
8. The proposed supply chain model...............................................................................................9
Quick Response Logistics............................................................................................................9
Agile Supply Chain....................................................................................................................10
9. Conclusion.................................................................................................................................10
References......................................................................................................................................12

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1. Introduction
The business for which the learner work for is a company that manufactures apparel and
lifestyle brand footwear. It is a growing name in the apparel and footwear industry. The company
has so far been able to meet the market demands by offering quality products at the most
competitive price. However, it finds strong competition on a broader level. Other reputed
manufacturers in shoes and apparel industry have a much more stable supply chain operations
than the learner’s company has (Ng et al. 2015). There are many other issues as well to have
impacted the chosen business. Hence, the main purpose of this assignment is to analyse the
supply chain operations of the chosen business. In addition, this report also recommends a new
supply chain model to help the company manage its supply chain operations more efficiently.
2. Objectives
The list of objectives of doing this task is as follows:
 To evaluate the entire supply chain management of the learner’s company emphasising
on speed to fulfill the market demands
 To recommend a new supply chain operations model to help the business dominate the
market
3. What is disrupting fashion
Emerging technologies are by and large disrupting the fashion industry causing the
average performers to suffer the most. Some of these technologies include but not limited to like
Artificial Intelligence (AIs), Trend Analysis Tool, Online Retailers and Digital Data (Stevens

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The Learner’s
Company
Origin Port Destination Port
Distributor Warehouses
Retailers
Consumers
and Johnson 2016). These technologies are results of increasing globalisation of technology. It
has also ignited the market competition. Hence, there is no other way than to survive. Survival is
most probable to those that have an efficient and effective supply chain operations management
in terms of speed to deliver (Stevens and Johnson 2016).
4. Supply chain network of the business
Figure 1: Supply Chain Network of the Learner’s Company
(Source: created by author)
“Figure 1” gives a diagrammatic presentation of how supply chain operations are
managed at the learner’s company. Materials are sourced from both local and international
suppliers. This is termed as origin port in the above figure. It then reaches to the destination port,
which is based close to the manufacturing unit of the learner’s company. It is followed by
manufacturing of products. Once the order is ready it is kept in distributors’ warehouses. This is

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the point from where products are delivered to retailers those who are already into business
relationship with the learner’s company. Finally, consumers purchase their desired apparel and
shoes from either their nearby or reputed retailers.
However, the supply chain operations has encountered few issues in recent times.
There is no effective communication with suppliers. It results in delayed delivery of materials
that also impact the manufacturing process. Hence, the overall efficiency to reach to market gets
impacted as well. This is a major issue considering that efficiency in product delivery has
become a key factor of market competition. In addition, reputed firms like Nike, Inc. is already a
superior player in supply chain operations (Mahdi et al. 2015). These issues can be addressed
appropriately with three supply chain strategies. These are (Tatoglu et al. 2016):
1. Strategic Lead Time Management
2. Supplier Relationships Management
3. Cross-dock Operations
5. Strategic role
Figure 2: Strategic Role
(Source: Marshall et al. 2015)

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The above image indicates the strategic roles being played in the entire supply chain
operations by the learner’s company. The learner’s company takes care of a major portion of its
supply chain operations. As evident from the picture, the company procures materials from listed
suppliers. It then manufactures the products. Once it is done the prepared products are then
stored in distributors’ warehouses. From there it is shipped to retailers and to its end users.
6. Current practices in terms of efficiency and effectiveness
Current practices will be categorised over three supply chain strategies as mentioned
above in “heading 4” of this report.
Time-based competition
The strategy encourages to reduce the time required in various processes like to propose,
develop, manufacture, promote through marketing and deliver. It has emerged as a major factor
in maintaining a sustainable competitive advantage (Chan, Ngai and Moon 2017).
Current Practices: -
The learner’s company is reducing on procurement and design processes. It is evident
form the following listed factors:
 Identify only the bestselling products
 Ensure sufficient raw materials in the stock
 Selection of eligible and right factory partners for the company
Efficiency and Effectiveness: -
 Strategy helps in market domination
 Enables to flourish key sales in seasons

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Strategic Lead Time Management
Logistics Pipeline Management
Current Practices: -
This can be described with the help of following listed factors:
 Inventory stock the company’s warehouse
 Forecast driven
Efficiency and Effectiveness: -
 Low cost per unit
 Economic of scale
Demand forecast accuracy is 30%, which is not very effective.
Concept of Lead Time
It is the time that it takes for products to reach to the market. This can also be defined as a
delivery cycle. It is to be noted that customers nowadays are increasingly sensitive to time
(Handfield et al. 2015). Hence, shortening delivery time has emerged now a major source of
competitive advantage.
Efficiency and Effectiveness: -
In regards to Inbound,
 Local material sourcing for local market to reduce the lead-time
 Suppliers’ involvement in very initial stages of supply chain operations management
 Pre-positioning raw material in case when it is related to long lead-time material

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In regards to Outbound,
 Implementing direct ship and cross dock for order delivery
 An order replacement is used in B2B system instead of a manual handle
Suppliers Relationship Management
The objective of supplier relationships management is to achieve customer’s satisfaction.
It has identified strategy to be able to deliver on customers’ expectations. This is to minimise risk
in dealing with suppliers and also providing products of high quality standard. There is solid
legal agreement with suppliers. Both the learner’s company and its suppliers have mutual trust
on their work. Information sharing is also very effective between the company and its suppliers.
The company needs to have long-term relationships with suppliers in particular with key
suppliers for selected items like rubber and fabric. Rubber and fabric are critical items for the
learner’s company. Quarterly review of suppliers’ performance is also required to evaluate the
performance of top management team in supplier firms. A Supplier Relationships Management
(SRM) Program need to be implemented. The SRM program will be aligned with goals and
objectives. Suppliers will be encouraged and appreciated for their quality work. Information
technology (IT) like Electronic Data Interchange (EDI) can effectively improve communication
between suppliers and the learner’s company (Gligor, Esmark and Holcomb 2015).
7. Strengths and Weaknesses
Strengths
Upstream: -

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 Time-based competition: It is because the company uses L4L in factory origins.
 Suppliers-relationship management: The Company enjoys long-term collaboration
with suppliers. Loyalty level is also very high between suppliers and the learner’s
company.
 Fast delivery capability: This is achieved with the help of direct ship and cross dock.
Weaknesses
Downstream: -
 Inaccurate forecasts: It is evident from number of instances of over and under
production.
 Incapable IT system: The Company does not enjoy proper IT system to support and
flourish the information flow.
8. The proposed supply chain model
The proposed supply chain model will have an inclusion of few strategies that were not
the part of the learner’s company. These are:
Quick Response Logistics
There is a need to beat the time-based competition and perform exceedingly well to get
more orders. This can be leveraged from implementing IT solutions and laying the information
network (Tarafdar and Qrunfleh 2017).
Advantages: -
 Helpful in equipping with market trends
 Improved demand forecast

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 Improved information flow by leveraging on a much advanced and improved IT system
 Boost speed that is important dominate market
Disadvantages: -
 Attract high investment cost to be made on implementing IT system and training
manpower
Agile Supply Chain
This can dramatically boost the speed by cutting short the lead time. This will also
minimise cost and risk. For example, Assembly to Order (ATO) (Gligor, Esmark and Holcomb
2015).
Advantages: -
 Improve customer satisfaction
 Improve responsiveness
 Improve ability to test market demand
Disadvantages: -
 Requires high hold cost for inventory
 Additional manpower
 Needs additional production capacity
9. Conclusion

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To conclude, this can be said that the learner’s company faced lagging performance in
time-based competition. This is because of its weak management of downstream supply chain
operations. Inaccurate forecasts and incapable IT system resulted in poor performance in the
downstream supply chain operations. Quick response logistics system leveraging on information
network and IT system will help to respond quickly to the market demand. Notably, quick
response to market demand is key to get sold away. In addition, the agile supply chain will
further boost up the capability to deliver products faster to the market. Assembly-To-Supply
(ATO) is one of the examples of the agile supply chain. In such supply chain, products are made
after when orders are received. Such products are highly customisable. However, this will attract
huge investments to be spent over developing the IT system and training manpower.

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References
Chan, A.T., Ngai, E.W. and Moon, K.K., 2017. The effects of strategic and manufacturing
flexibilities and supply chain agility on firm performance in the fashion industry. European
Journal of Operational Research, 259(2), pp.486-499.
Gligor, D.M., Esmark, C.L. and Holcomb, M.C., 2015. Performance outcomes of supply chain
agility: when should you be agile?. Journal of Operations Management, 33, pp.71-82.
Handfield, R.B., Cousins, P.D., Lawson, B. and Petersen, K.J., 2015. How can supply
management really improve performance? A knowledge‐based model of alignment capabilities.
Journal of Supply Chain Management, 51(3), pp.3-17.
Mahdi, H.A.A., Abbas, M., Mazar, T.I. and George, S., 2015. A Comparative Analysis of
Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to
Competitive Advantage in the context of a Dynamic and Competitive Environment.
International Journal of Business Management and Economic Research, 6(3), pp.167-177.
Marshall, D., McCarthy, L., Heavey, C. and McGrath, P., 2015. Environmental and social supply
chain management sustainability practices: construct development and measurement. Production
Planning & Control, 26(8), pp.673-690.
Ng, I., Scharf, K., Pogrebna, G. and Maull, R., 2015. Contextual variety, Internet-of-Things and
the choice of tailoring over platform: Mass customisation strategy in supply chain management.
International Journal of Production Economics, 159, pp.76-87.
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.

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Tarafdar, M. and Qrunfleh, S., 2017. Agile supply chain strategy and supply chain performance:
complementary roles of supply chain practices and information systems capability for agility.
International Journal of Production Research, 55(4), pp.925-938.
Tatoglu, E., Bayraktar, E., Golgeci, I., Koh, S.L., Demirbag, M. and Zaim, S., 2016. How do
supply chain management and information systems practices influence operational performance?
Evidence from emerging country SMEs. International Journal of Logistics Research and
Applications, 19(3), pp.181-199.