Silver Surf Beachwear Supply Chain

The assignment examines the logistics and supply chain challenges faced by Australian swimwear and surf wear company, Silver Surf Beachwear, as it expands into international markets. It highlights key issues such as managing diverse customer behavior, ensuring product quality and safety across global suppliers, and developing contingency plans for potential disruptions in the supply chain. The document emphasizes the importance of effective inventory management, timely delivery, and market research for the company's successful growth.

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and Supply Chain management
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1LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Supply, order and delivery...............................................................................................................2
Key issues........................................................................................................................................3
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

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Introduction
The main purpose of logistics and supply chain management is to satisfy the customers
by looking after their expectations and providing the outcome. This report will look into the
logistics and supply chain of the Australian company Silver Surf Beachwear. This company was
established in the year 2014 as a tiny local business based in home (Islam et al., 2013). They
started with designing and selling swimwear and surf wear in Sydney and later expanded online.
With the growing demand of the products, the company became a proprietary from a local
business. The entrepreneurs, Kate and Lisa who started this venture had to shift their location to
a wider area and hired employees to assist them meeting the demand of the products. Not only
did they take a factory on lease but also hired twenty staff for manufacturing, selling and
distributing the products(Fernie and Sparks 2014).
Supply, order and delivery
To expand from a local business to USA, Europe, Asia and South America, Kate and Lisa
need to identify their potential suppliers. Whatever might be their estimated value of the product,
they need to make a decision where to market their product. The selection of the suppliers will
depend on the estimated value of their products. If they select suppliers of lower value then they
need to be identified by doing proper survey and applying the knowledge. If they have a
requirement of high value, especially when their expected value exceeds the limit, they can give
advertisement in different media for getting potential customers. It is also necessary for Kate and
Lisa to make a primary evaluation in order to identify their capability and suitability to perform
accordingly. There company will then be selected on the basis of some criteria. The set of criteria

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will assess the suitability with respect to payment of tax, criminal activity, bankruptcy, economic
and financial condition and the technical ability(Gattorna 2016).
The selection of supplier should be done at the prime moment when the product will be
sourced from the local market to international market. The domestic supply sources can be found
in the central markets, expositions or trade shows(Islam 2013). Kate and Lisa will have to find
their potential suppliers from the Australian central market. By visiting such location, they will
be able to get a hint of the market trend and examine the modern resources and merchandise
offerings. They can also go in search of suppliers at trade shows and business expositions. Apart
from going to the domestic market, Silver surf beachwear can also look out for foreign sources
where the merchandise can be purchased. They will have to look out for this option as trade
barriers are comparatively lower in the countries where they are going to expand their
business(Ross 2013).
As they are going to make the business large and new, Kate and Lisa must decide on the
type of stocks that they require, chalk out a plan for the process of ordering and also determine
how to store the raw materials and deliver the finished products. Their business will stand on the
suppliers that they choose and the quality of products that they deliver on time. To increase
thesales volume as per the needs of the customer they can increase the number of staff which
will help in attaining their target at a cheap manufacturing and distributing process(Rushton,
Croucher and Baker 2014).
Key issues
It is common on the part of supply chain managers to face challenges which require
immediate attention and action. As supply chain is the root of all business operations such

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challenges will have a direct impact on the growth and development of the business. Being a new
company, Silver surf beachwear cannot afford to take such risk which will hamper their business
especially when they are on the verge of expanding at a broader level(Stadtler 2015).
For instance, managing inventory goes beyond accounting how many boxes are sitting in
the storage house. It is a big challenge for the new company silver surf beach wear to supply
products and inventory so that the customers and clients’ expectations will be met. They will
have to balance between delivering the right quantity of appropriate quality of product at the
right time. It will be difficult for a start-up company to manage all these things at once in new
locations with a minimum amount of staff. The customer behavior is not the same in all
countries. Being a company of Australia, they are acquainted with the local customer. But they
have no idea about the customers of other countries where they are going to expand their
business(Turker and Altuntas 2014).
Due to globalization, the supply chain has become a matter of concern for the quality of
products which are manufactured in other countries. Kate and Lisa have a bigger responsibility
as their products- swimwear and surf wear have to meet the regular industry standards. This
means that the supply chain managers will have to ensure the suppliers as well as the products in
order to keep up the safety and quality standards. Safety issues can ruin the company’s reputation
and lead to cash flow. It will also hamper the business of Silver surf beach wear if they keep on
depending on just one supplier. There are high chances that the supplier becomes incapable to
meet the demands or goes bankrupt. Back- up plan should be in store to keep the business in
flow without damaging the profitshows(Islam 2013).

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Conclusion
So, it can be concluded that the supply chain managers have a difficult task of
maintaining everything in one go. Whatever crisis might come, it should be ensured that the
company has enough in their storage to keep the supply chain moving. The perfect thought
process of the two entrepreneurs will be suitable for the business. It is not enough to keep
sufficient products in stock but also to give delivery in the right time. A market research will
help the businesswomen to know their area and plan about the business accordingly.

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Reference
Brun, A., 2017. Supply Chain Management in the Luxury Industry. In New Luxury
Management (pp. 189-216). Springer International Publishing.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Gattorna, J., 2016. Dynamic supply chain alignment: a new business model for peak
performance in enterprise supply chains across all geographies. CRC Press.
Islam, D.M.Z., Meier, J.F., Aditjandra, P.T., Zunder, T.H. and Pace, G., 2013. Logistics and
supply chain management. Research in Transportation Economics, 41(1), pp.3-16.
Ross, D.F., 2013. Competing through supply chain management: creating market-winning
strategies through supply chain partnerships. Springer Science & Business Media.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Turker, D. and Altuntas, C., 2014. Sustainable supply chain management in the fast fashion
industry: An analysis of corporate reports. European Management Journal, 32(5), pp.837-849.