What Is the Right Supply Chain for Your Product Free Essay Example

The technology has improve glaringly the capacity of enterprises , make the supply chain every time more efficient thank to globalization we can contact rapidly but at the same time new markets grow and the competence with new ideas. Nevertheless having an excellent tool as communication the enterprise makes a mistake don’t choosing the appropriate supply chain for their products. The costs are so high due to the bad relationship between the company and the retailers, Dysfunctional industry practices, Overconfidence in promoting, Poor coordination between the chain links and Excess demand or shortage.

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It’s important to predict the demand and the profit to choose the right supply chain. It must consider demand predictability, product life cycle, market standard response, product variety, and service. When products have a stable demand as milk , brain , basic products pattern and therefore are reasonably predictable, the planning of their supply is easy although the competition is intense and the profit is low.

On the other hand are unpredictable products often carry higher profit; these products are innovative, are new product developments and incorporate new technology as clothes , music, movies etc.

These have unpredictable demand, a greater risk of shortage or oversupply. The supply chain performs two functions: one physical and other market intermediary and the market mediation function must ensure that the variety of products that come to market match which consumers want to buy. The companies have a need to identify whether their products are functional or innovative.

The traditional continuous cost reductions companies have reached the point of reducing profitability within them, now turn toward better coordination with suppliers and customers with support of electronic communications networks.

To the extent that increased information and resources, increase the capabilities of each of the components of the supply chain, allowing them to make better decisions and thus streamline the business. Conclusion A successful supply chain is one that manages to deliver to the end customer the right product in the right place at the right time, the required price and the lowest possible cost.

In the future, competition will not be business to business, but rather supply chain to supply chain is the famous phrase of academic business school of Harvard University, Michael Porter that’s why the importance to having an excellent supply chain to satisfy the client. To the extent that increased information and resources, will increase the capabilities of each of the components of the chain, allowing them to make better decisions and make more efficient the company. The most recurrent reason why there are problems in the supply chain is the incompatibility between the type of product and type of supply chain.

The objective is to optimize costs and increase sales by choosing appropriate strategies having as result a win-win negotiation both the company and the customer. Example: U. S. Nike Shop, which offers customers the option to design their own shoes. That is, the client has chosen a design according to the purpose for which you want to use (basketball, running, etc. ) And also gives you the option to customize the design with the choice of distinctive colors for each shoe. Nike has the ability to make shoes in a standardized (and massive, if desired), but personalized