Assume the role of Pierre Pirard, I would execute the supply chain re-engineering for the value it could bring. The turnkey strategy would greatly improve Elizabeth Arden’s performance on supply chain efficiency and effectiveness. The plan should include supplier consolidation to reduce COGS as well as an improvement on working capital. It also requires a re-design of the organization structure.
Actions
In 2007, material and indirect purchases of $350 million accounted for more than half of Elizabeth Arden’s COGS. The high cost was relevant to the nature of products, but more importantly, maintaining a good relationship with numerous manufactures of brands were costly. There are many independent suppliers available in the market, in addition, suppliers are critical components for product quality, performance, and price. Such commodities to critical products frameworks suggest a leverage preferred supplier strategy using supplier consolidation. Under the proposed turnkey strategy, the company provides preferred suppliers more responsibilities for the entire manufacturing process so a long-term relationship could be formed. To make it work as promised, suppliers should pay on-site visits to Elizabeth Arden for early involvement
…show more content…
Labor-intensive purchasing process is an expensive and low value-added work. Currently, the company has no centralized management to perform strategic purchasing. It was a concern that whether employees would come up with speed to the dramatic changes coming from re-engineering. Some of multiple hand-offs between department look complicated and redundant. An example of solution would simplify the process from demand planning to raw material planning to be implemented by less employees within a close group. In addition, the organization should be re-designed to a more “customer oriented” to align with the turnkey
It is observable that the standard procedure issue restricting company progress is a notably derelict network. The Enterprise Resource Planning (ERP) and Materials Requirements Planning (MRP) servers are outdated and stand out from the rest of the systems set up. Integration of the servers will be executed to address the company’s customer relation, human resource, sales and order, finance and inventory issues. Integration will be the goal after upgrades are incorporated in the system’s infrastructure. Recurrent technological advancement compels innovation in apt acknowledgement of agile enterprise. It is essential for Riordan to transition appropriately to sustain a contemporary pace that equals the requirements of strong customer levels. The overall decision making process rudimentary to Riordan’s organizational headway entails agile enterprise in its management system. Primarily, Riordan must contend with its inventory system as manual implementation causes status delay which can halt production, sales, purchasing, and overall deference from the
This analysis examines the economic strategy of Vera Bradley. I took a closer look at the strategic moves of this Luxury goods manufacture. The owners going from making colorful patterned duffel bags and suitcases, has now become a household brand. Their decisions to differentiate ultimately shaped the growth of their business. With a declining fiscal year, Vera Bradley decided to implement a new strategy that will be sure to revamp growth. To further explore the challenges that continue to occur throughout this case, I analyze those challenges and suggest tools and techniques that would help improve the economic strategy of Vera Bradley.
The process efficiency of purchasing order release was also restricted by BAL’s existing IT system. Though BAL had capability to electronically cut purchase orders to larger suppliers via web-based online tools developed by these suppliers, BAL’s current legacy system was not supporting its interfaces connected to suppliers’ web browsers and thus resulted extra manual work to feed ERP system.
This is a case study analysis on Nissan Canada Inc. (NCI) and its plan to move from a “make to stock” to a “make to order” process and the implementation of NCI’s Integrated Customer Ordering Network (ICON). Involved in the implementation of ICON, NCI is faced with several challenges in the conversion of its outdated ordering process to Manugistics, an Enterprise Resource Planning (ERP) system. (Hunter, 2007)
Suppliers in the industry seek buyers who can move a lot of merchandise in a short period of time. The threat of substitution is a big deal in this industry. Most retail stores carry the same types of products with little differentiation. This makes it difficult for companies in this industry to keep customers coming back. This places an emphasis on the need to build a good reputation with customers.
Even though direct competition has decreased, the tendency of retailers to get their products directly from manufacturers puts the company in a position of relooking its competitive edge as a distributor. The marketplace is shifting from an individuality to supply chain performance – the ability to meet end-customers needs through product availability and responsive and on-time delivery. Supply chain performance crosses both functional lines and company boundaries. Brunswick must change their way to fill customer orders faster and more efficiently than the competition.
VF has several approaches it can take when it comes to its global supply chain strategy. The industry landscape has changed, where seeking low cost suppliers through the international community has been highly saturated and cost optimization has reached its peak. Chris Frasier, President of the Supply Chain International for VF Brands, is worried that the company’s current supply chain strategies will not satisfy the future demand of customers in Asia. Company is trying to establish close relationships with their suppliers in order to minimize the costs of production, and shorten the lead-time that occurs with its traditional suppliers.
Vivienne Westwood has been an iconic figure in the fashion world since she got her start in the late 1960s-early 1970s. Best known for her collaborations with Malcom McLaren, she was instrumental in creating what people know today as the iconic British punk look. Read on to find out more about Vivienne Westwood, and keep an eye out for part two of our list, coming soon.
The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is a key factor to Zara’s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth.
In 1995, IBM reengineer and redesign its logistics and procurement and outsourced its activities if it could be done faster and cheaper. Within one year of reengineering, costs were down 20% and time needed to complete and confirm supply orders had decreased from average of 48 hours to 2.5 hours. By 2000, $370 Million were saved annually by procuring goods & services online (94%). Also, year-to-year growth in procurement volume increased by 60% between
In recent years, the requirements of commercial and industrial operations in the production of services and goods have been subject to vast changes. In the present era of globalization and increasing international competition, a trend away from vertically integrated organizations has become more and more evident. In fact, most companies nowadays tend to solely concentrate on their own core competencies, outsourcing different steps of the production. However, including a great many of other organizational units to the production systems, has lead to rising complexity in terms of the operations management (Plenert, 2012).
Companies go across borders in search of new market opportunities and in turn, have to focus on increased productivity as competition intensifies. Organization structure and job design are carefully selected by managers to ensure that work are coordinated well with less hurdles to achieve the established goals in the planning process (Wren, 2001). In the Autodesk’s Sales department, the structure is similar to a family tree where the Sales Managers coordinates the works of the Resellers and report to the Sales Director who is in-charge of the department.
The problem VF is experiencing is the result of an inefficient supply chain strategy. VF is experiencing challenges with its relationship with suppliers that negatively affect its operations. Supplier relationship management seem to be cause of the supply chain inefficiency as indicated by occurrences VF management experienced in the case. One factor of supplier management is to maintain a mutually beneficial relationship with suppliers. Suppliers do not trust VF and are focused on their own goals., that in some cases, create more expense for VF. Another cause VF’s supply chain problem is the hassle of renegotiating contracts or negotiating contracts that are mutually beneficial. These negations take long periods and is hardly results in what can be described as a win-win situation for both parties. The capabilities or lack thereof, of VF’s suppliers is also a cause of the supply chain problem. Many of VF’s suppliers are in third world countries and lack both skills and technology to increase their own efficiency and product quality. While VF is considering the idea of supplier improvement, a buyer invests human and capital resources to improve the seller’s ability to meet the buyer’s needs, suppliers have been resistant to VF attempts to get involved in their operations. VF’s supply chain worked in previous years, but as the apparel industry is changing the pressure to drive down cost has forced manufacturers to implement more creative solutions.
In the book Reengineering the Corporation: A Manifesto for Business Revolution, Michael Hammer and James Champy discuss a concept that he originated known as “reengineering”. The process of reengineering involves coming up with new ideas, specifically processes, which are technologically advanced and extremely effective in completing corporate work. Companies must think ahead so that they will not only succeed today, but also set the rules for future business. A critical part of reengineering involves ignoring the current procedures and structures that have been set by a company and replacing them with more efficient processes. In creating these new processes, companies must focus on the needs and wants of consumers. This will ensure customer satisfaction, which is a key part of maintaining a competitive advantage in today’s world.
In an era where companies compete in global context to provide the best solutions, products or services in order to gain loyal customers, every detail in the processes within the organisation contributes massively to its success or failure. Every organisation’s desire is to match supply and demand in a timely manner with the most efficient use of resources. Meanwhile, the key component of success is to understand customer’s needs and to translate them into value, and eventually into products. In order to meet both the above, the organisation desires its internal processes to have a clear and adequate mechanism that will link all departments and ensure high quality and trust.