Assessment Of The Existing Supply Chain Management Essay

1291 Words Nov 22nd, 2015 6 Pages
Assessment of the existing supply chain management
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduces Somerset overhead cost, but there is always risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local economy.

Initially the Somerset furniture company established China as a manufacturing hub with low risk assessment. Based on the given details, the existing supply chain events are assessed and listed in the below table. A key factor noted during assessment is that the existing supply chain process is totally a manual process despite internet and mobile based transaction is choice of electronic commerce that adds speed and quality. The Somerset closed all of its production process in the U.S and transports all of its manufactured furniture from China to U.S passing through international shipping and logistics which involves many administrative steps. The manual process contributing increased duration of the total production cycle and delivery time.

Supply Chain Logistic Events (Given) Duration (Given) Min Days Max Days Average
Demand forecast 1-2…

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