SC&Logistic
SC&Logistic
SC&Logistic
SUPPLY CHAIN
MANAGEMENT
TOPIC- SYMPHONY AIR COOLER
1. Explain the drivers of supply chain performance & strategy to achieve the balance between efficiency and
responsiveness for the organization given in the assignment.
2. Explain Obstacles in achieving strategic fit for the organization given in the assignment
3. Propose a design for a distribution network for the organization given in the assignment based on the
following distribution network options: Distributor storage with last-mile delivery
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1. Drivers of SCM and balance between efficiency and responsiveness
Competitive strategy
SCM Strategy
SC Structure
Efficiency Responsiveness
Price Inventory
Facility
Transportation
Sourcing
PRICE
Using right price
Use incentives to eliminate supply chain surpluses
Leveller to match Supply and Demand
INVENTORY
Stocking high levels of inventory of symphony coolers
Stocking products at many locations to have an inventory close to customers
Reducing inventory of coolers that are not selling as frequently and upscaling inventory of those
who are cash cows.
Cycle inventory- to satisfy demand,
Safety inventory- buffer against uncertainty
Seasonal inventory- summers for Symphony
INFORMATION
Coordinate daily activities related to other SC drivers
Collecting accurate and timely data about customer demand, production schedule and inventory
levels (Responsiveness)
Use of software’s and analytics to gauge target customer base and Forecasting and planning
Cost of information drops when other cost rise (efficiency)
Generate daily performance data on operating cost and inventory levels for all the facilities
FACILITY
Manufacture and repair sites for Symphony
Establishing locations that are close to customer base or at prime locations (responsiveness)
Centralising activities in few locations (serving large geographical market through some central
locations (efficiency)
Define storage and operating expenses of warehouses
SOURCING
Procuring right materials in right quantities, right condition at right time
Insource/ Outsourcing some products
Reduction in no of suppliers
TRANSPORATATION
Faster mode of transportation
Tie up with FedEx that can provide responsive services and last mile delivery (responsiveness)
Creating a central HUB facility or distribution center DC (efficiency)
Moving products in large batches by bulk carriers such as ships/railroads (efficiency)
2. OBSTACLE IN ACHIEVING STRATEGIC FIT
6. Vehicular movement and flow are to be prior considered so that goals are met. A fleet manager or
software will assign delivery routes based on orders.
7. Routes will be optimized based on customer location, delivery time constraints, fuel usage, and more.
Crowdsourcing logistics can be sought and there could be the use of electric vehicles in long run.
8. Symphony cooler orders are scanned and tracking information is sent to the customer.
9. The customer receives the order for a Symphony cooler. Various Time windows for customers to
ensure that they are at home for attended home delivery services,
10. Proof of delivery of the cooler is obtained, such as a signature or picture of the delivered order for
order records.
Chaharsooghi, S. & Heydari, Jafar. (2011). Strategic Fit in Supply Chain Management: A Coordination
Perspective. 10.5772/14801.