Essay on Supply Chain Management

Rebel Sport is an Australian sporting goods company that deals in a wide range of products. Some of the products in the company’s portfolio include clothing, footwear, and other sporting equipment and accessories. The first Rebel Sport store became operation in Panmure, Auckland in 1996. The founders originally modeled the business around the concept of the superstore in which shoppers could select sporting items from a range of brands from all over the world. Since its inception, the sportswear firm has been procuring its products from various manufacturers from all over the world such as Adidas, Nike, Reebok, Puma, Garmin, and Flight

BLK is an Australian company and a leading manufacturer of high end footwear. The organization has been operational for about 10 years. BLK manufactures its products in factories, located in China and Fiji. The company’s target market comprises of both children and adults market segment. The company also has a nationwide reach, with distribution outlet across all states and regions in the country. After manufacturing, the company transports the finished products to the various distribution outlets across the country.

As part of its strategic goals, BLK want to establish a supply relationship with Rebel Sport with the aim of securing a long-term market. There is an overlap with regards to the target customers of Rebel Sports and BLK. Both organizations deal in high-end sporting products and target the same market. In addition, BLK have distribution outlets in most outlets as Rebel Sport, which represents a convenience in case of a partnership between the two firms.

Sourcing Suppliers

Sourcing refers to the process of identifying vendors with the aim of conducting negotiations and agreeing supply contracts with them. For business to be successful, it is important that they identify suppliers who represent future stability and significant profit margins. When sourcing, businesses must consider numerous aspects such as pricing, means of delivery, and timing of suppliers. For BLK to enter into sourcing agreement with Rebel Sport, sourcing and supply managers need to observe several key processes.

Bill of Materials for BLK

            A bill of material is an important component of supply management refers to a list of inventory, sub-assemblies, sub-components, and quantities that a manufacturer requires to make a finished product. The following is a Bill of Material for BLK.

BOM Level Part Number Part Name
1 001 Leather
2 003 Sole ribbon
3 010 Inner sole
4 015 Studs
5 030 Laces

Nature and Identity Suppliers

            BLK will procure the shoe-building materials from various suppliers. Most businesses make supplier choices on the basis of the cost of materials, mode of delivery and payment. The company has identified two suppliers to meet its raw material needs. According to Kamalahmadi and Parast, it is important to engage more than one supplier to ensure stability in terms of supply of materials in the future. In additionn, business that source raw materials from only one supplier are more likely to encounter disruptions compared to organizations that source their materials from multiple suppliers.

            One key supplier is Bruce Johnson Leather Tools Inc. in Oakdale, California. With over 25 years of experience in the leather products, the company represents an opportunity for BLK to procure high-quality leather and shoe making tools. In addition to the high quality leather, Bruce Johnson also supplies deal in shoe-making accessories such as dye, sole ribbon, and studs. According to Kovács and Tatham, businesses that use quality raw materials in their manufacturing process have a higher probability of developing quality finished products

           The second supplier will be Joseph Dixon Limited – a UK-incorporated Company. Since its inception 165 years ago, the organization has been providing cutting and tooling solutions to the shoe-making industry around the world. Joseph-Dixon Tool Company is a family owned enterprise and it manufactures shoe-making items such as press knives, strip knives, saddler tools, inner soles, shoe studs, laces, and sole ribbon. The business has operated under strict quality standards, making it a valuable supplier for BLK.

            Modern managers find it challenging to manage their supply chain due to the numerous complications that pervade the process. Thus, a supply chain diagram becomes a useful tool for managers to document the identity of suppliers and their interrelationships. In addition, businesses can use supply chain diagram to identify and fix any weaknesses and redundancies within the manufacturing system. The following is a supply chain diagram that BLK can use in its manufacturing process.

 

 

Author: admin