Supply Chain Management Report: Silversurf Beachwear's Global Strategy

This report offers a comprehensive analysis of the supply chain management strategies for Silversurf Beachwear, a fashion retail company aiming for global expansion. The report delves into critical aspects such as inventory management, strategic planning, and the challenges of operating in a globalized world, particularly in the context of entering the Chinese market. It emphasizes the importance of effective inventory control, sustainable practices, and the integration of information technology to optimize supply chain operations. The study also highlights the significance of automated data collection, transaction-based movements, and maintaining appropriate inventory levels to mitigate risks and enhance efficiency. Furthermore, the report examines the impact of IT solutions like ERP and RFID in streamlining processes. The report concludes by offering insights into managing inventories effectively, leveraging information technology for competitive advantage, and the adoption of sustainable practices to reduce costs, improve customer service, and generate higher profitability.

Running Head: Supply chain management 1
Logistics and Supply chain management

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Contents
Supply chain Management..............................................................................................................3
Inventory management and strategic planning................................................................................3
SCM in globalized world.................................................................................................................3
Sustainable practices in SCM..........................................................................................................4
Managing inventories......................................................................................................................4
Impact of information technology...................................................................................................5
References........................................................................................................................................6

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Supply chain Management
This report focuses on the supply chain management of fashion Retail Company named
Silversurf Beachwear. From the case study, it is observed that the company is doing well in the
Australian market and now it is planning to expand its business in more countries. For this
manner, there is the need to implement proper supply chain management plan in the business
activities. Company wants to expand the business in USA, Asia, South America, China and
Europe and there is the need to utilize cheaper manufacturing and distribution strategies to get
success in these markets. But it must be noted that doing production in other country like China
can be risk and difficult (Lashen, 2012).
Inventory management and strategic planning
For Silversurf Beachwear, inventory management is the most important part of the supply
chain. Effective inventory management has a positive impact in the business operations by which
Silversurf Beachwear will be able to produce best quality of clothing products. There should be
effective inventory management to establish strong relations with the suppliers and the
customers. Inventory management will be helpful to control unnecessary cost and review the
planning in the development process. It will also monitor the economic value of the company
(Arndt , 2008).
SCM in globalized world
Supply chain management at the global level can cover various functions in Silversurf
Beachwear such as managing production of company’s products and services, storage,
inventories, monitoring, coordination with the suppliers and distribution of the products on time
etc. To operate on the global level, company will focus on the five important components i.e.
plan, source, make, deliver and return. In the supply chain, company will also focus on the three
flows i.e. cash, information and product within the chain. By these components, Silversurf
Beachwear will be able to manage the supply chain on global level. Along with this, on the
global level of supply chain, there will be continuous exchange of information material and
finance within the members of the production. By adopting these supply chain strategies,
Silversurf Beachwear will be able to expand in the most challenging country China. In China, the

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garments industry is one of highly contributory economic sector so, Silversurf Beachwear will
focus on implementing various innovations to operate successfully (Lysons & Farrington, 2012).
Sustainable practices in SCM
By adopting sustainable practices of supply chain, company will be able to reduce the
investment risk, decrease cost, improve time to market, improve profitability and generate more
cash. By the supply chain management, company can improve its production by distribution and
manufacturing process. Good production can bring effective balance in the product, inventory
investment and improve customer service (Waller & Esper, 2014). For the effective supply
chain, there are some practices which will be used by the company:
 There will be automated data collection method for the inventory management process.
This system will automatically collect the data regarding the required products.
 There will be transaction based movements for the supply chain to maintain the records
of the flow of the raw material and inventories.
 Company will have all the information related to available inventories for the production
of the clothes.
 Team of inventory management will update the important documents in the proper
manner on time to time as there is the need of proper data for maintaining adequate
inventory.
 Company will maintain proper level of inventory as excess level of inventory can be the
reason of space and money. It will include the re-order point along with arrangements of
safety stock of the inventory (Hussey, 2007).
Managing inventories
The concept of inventory management and control has the positive impact on the business
operations of the company. Proper inventory management is the key factor in the business
operations. Managing inventory such as raw material, work in progress, finished goods and
partner inventories is important to achieve success in the market. In case of Silversurf
Beachwear, there are some concepts of inventory management and control that would be helpful
for the company to increase its efficiency in the international market. A company can be
competitive when the inventory management practices are effectively implemented by the

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company. For Silversurf Beachwear, there are some points which should be focused by the
company managing inventory (Mihm, 2010).
 For getting competitive advantage, company should not maintain too much inventory for
the production of clothing products. Along with this, company should not store
unnecessary stock as it will take additional operating cost for whole year.
 Company should focus and observe the inventory items in the proper manner. For this
manner, company should use inventory tracking software or bar codes to ensure that there
are no counting errors in the inventory storage.
 At the time of placing of the order of inventory, the inventory management software
should be there to manage the inventory. Along with this, the order of the inventory
should be placed before the ending of stock to prevent the production from the shortage
of raw material.
 There should be a backup plan in the business that can be used at the time of failure of
the system. This will be helpful in keeping the storage cost low, proper use of money and
offering the product on time (Toomey, 2012).
Impact of information technology
For the effective supply chain, use of information technology will be helpful for
Silversurf Beachwear. The company will implement many information technology solutions with
the supply chain management i.e. material requirement planning (MRP), e-commerce,
warehousing, and e-tailing. The goal of the supply chain is to make information processing,
product distribution and order processing in the efficient manner. For this manner, company will
implement some information technology software i.e. Enterprise resource planning (ERP), Build
to order (BTO), and Radio Frequency Identification (RFID). These systems will be helpful in
various supply chain activities like inventory management, order processing, effective
production, distribution of the products on the time (Macchion et al, 2015).

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References
Arndt , H., (2008), Supply Chain Management, Germany: Gabler Verlag
Hussey, D.E., (2007), Strategic Management: From Theory to Implementation, UK: Taylor
& Francis
Lashen, M., (2012), Supply Chain Management in Fast Fashion, accessed on 27th August
2017 from https://www.theseus.fi/bitstream/handle/10024/57383/MiraLashen_Thesis.pdf?
sequence=1
Lysons, K. and Farrington, B. (2012), Purchasing and supply chain management, Harlow,
Essex: Pearson Financial Times
Macchion, L., Moretto, A., Caniato, F., Caridi, M., Danese, P. & Vinelli, A., (2015),
Production and supply network strategies within the fashion industry: International Journal
of Production Economics, 163, pp.173-188
Mihm, (2010), Fast Fashion in a Flat World: Global Sourcing Strategies. International
Business & Economics Research Journal, 9 (6) pp 55-63
Toomey, J., (2012), Inventory Management: Principles, Concepts and Techniques, Germany:
Springer Science & Business Media
Waller, M. A., & Esper, T.L., (2014), Introduction to Inventory Management: Principles and
Strategies for the Efficient Flow of Inventory across the Supply Chain, accessed on 27th
August 2017 from http://www.informit.com/articles/article.aspx?p=2192703&seqNum=2

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