The Supply Chain Management (SCM) is an activity carried out for a specific purpose in organizing various activities necessary to produce and deliver goods and services in to a business. (Supply Chain Management Guide, 2013)
The well planned, organized and structured SCM is key to a success for a project. It improves controlled product quality, reduced risk and lawsuits while helping to build a strong brand name. At the same time, controls over shipping/logistic procedures, avoiding costly shortages or periods of inventory oversupply.
In overall, supply chain management provides several opportunities for organization to improve their profit margins significantly for large operations like Dubai Parks & Resort. (Jason Fernando, 2020)
There are 5 key elements as listed below is vital for this sector of business.
- Sourcing of Raw Materials
The planning phase refers to developing an overall strategy for the supply chain, while the other four elements specialize in the key requirements for executing on that plan. Dubai Parks & Resorts must develop and be expertise in all the five elements in order to have an efficient supply chain and avoid expensive bottlenecks. (Jason Fernando, 2020)
Sourcing also known as procurement, it is an exercise of locating and selecting individual and business based on the criteria. It is carried out in many areas for different reasons.
The Dubai Parks & Resorts business needs various raw materials, components, finished goods, and services to produce the products and services for the customers operations. The global market requires planning to create and optimize a sourcing strategy which shall provide not just a healthy return on investment (ROI), but also value in the form of increased competitive performance, decision making, operational efficiency, and insight driven.
The strategic sourcing begins the process with a developed and properly implemented sourcing plan. Thought It seem like daunting endeavour, but creating and implementing such a plan doesn’t have to be an obstacle to Dubai Parks & Resorts as it is in long-term success.
Investing in the right digital tools, forming a team, and follows few basic principles, shall help to find the right sourcing options.
This report focuses on commonly used single sourcing and multiple sourcing with significant differences between the two theories for Dubai parks and Resorts
- Single Sourcing
- Long term dealings and contracts with a supplier with excellent track record.
- Sole owner of an essential patent or process with only sourcing.
- With market surveys, researches and previous experiences choosing the best supplier.
- Minor supplies with negligible quantities not worth of dividing.
- Bulk exclusive orders will make certain discounts and or lower freight rates
- Acquiring the whole order will make the supplier more interested, cooperative and responsive.
- Higher initial cost of production (eg: requires dye, molds and costly setup)
- Easy scheduling of deliveries
- Uninterrupted flow of supplies
- Effective supplier relations require considerable resources and time.
(Fraser Johnson – 2011)
- Multi Sourcing
- Traditional practice is to use more than one source for important requirements.
- Suppliers awareness of competitiveness will be advantageous.
- Assurance of supply flow in case of fire strikes, breakdowns, accidents or unforeseen circumstances occur to a supplier. Deliveries can still be obtained from the others for at least for the part of the needs.
- Exclusive ability of handling multiple sources
- Avoidance of supplier dependency.
- superior flexibility (unused capacity of all the suppliers may be available).
- Military preparedness, secure flow of supply as such strategic reasons requires multiple sourcing
- Local authorities’ regulations may require multiple sources to be used to encourage small and medium businesses
- Lack of supply for the future needs
- Experimental sources for alternative/ back up requirements in case of unforeseen circumstances
(Fraser Johnson – 2011)
Dubai Parks & Resort is wide range business, it required both sourcing options depends to the key goods and service.
Flexible sourcing strategy reduce cost and increase efficiency and also it has competitive advantage to help organizations. Apart the above options single or multi supplier selection, there are some sourcing strategies to consider;
Previously internally provided goods and services that are received from outside supplier.
Previously externally provided goods and services that delegated to someone inside the organization.
- Near sourcing.
Arrange the operation where its end products and service are sold.
- Vertical integration.
Joining the production or distribution in the same industry (backward integration or forward integration).
- Joint ventures
Create by two or more parties by sharing the ownership, returns, risks and governance.
(Paul A. Myerson, 2017)
Click here to download the complete solution
Our happy customers
They are fast in responding to homework questions. they have the best technical writers. Thanks for helping me with my programming doubts.
I contact to disklib for homework, they help me out, despite there was some technical issue they gone through extra mile for me and provide me good quality work in first priority. 100% recommended.
Desklib's study resources are best & unique. Their study database is easy to access and easy to use.
100 % recommended.