You are John Deere the new Supply Chain Manager at Upsmoke Corporation and have been asked by the CEO, John Black to address the below work items in a written document (MS Word / MS PowerPoint).
1. Prepare a SWOT (Strengths Weaknesses Opportunity Threats) analysis on the current Supply Chain Management configuration at Upsmoke Corporation.
2. Prepare an improvement concept which describes at least 5 key ideas to boost the supply chain performance at Upsmoke Corporation.
3. Prepare an implementation roadmap as part of the improvement concept on key activities and milestones to be followed in order to reach expected performance results.
4. Prepare a change management plan on the implementation of proposed improvements: How can the buy-in of the current organization be strengthened to make the transformation a success?
SWOT (Strengths – Weaknesses – Opportunity – Threats) analysis on the current Supply Chain Management configuration at Upsmoke Corporation
The current assignment provides a SWOT analysis on the current supply chain management configuration at Upsmoke Corporation. It provides an improvement concept that describes at least 5 key ideas for boosting the supply chain performances of Upsmoke Corporation. The implementation roadmap as part of the improvement concept on key activities as well as milestones that needs to be followed in order to reach expected performance results have also been provided in the report. Change management plan on implementation of proposed improvements and the process by which current organization can be screened and for making the transformation a success has also been discussed.
Strengths |
Weaknesses |
Upsmoke Corporation has build up huge inventory compared to the competition providing a good service level to all the 180 markets. 36 factories running in a mode of cost efficiency beyond 95% capacity utilization (Corrao, 2000). The production shortfall is compensated by immediate airfreight shipments over time for counter acting lost sales. The planning in time of approximately 3 month is considered as a standard of industry that mainly drives the long material order of 6 weeks lead time. The cost efficient company as well as productivity annually provides delivering of the Shine program. |
Major weakness of Upsmoke corporation is the depositing result of rights of about around 200 million USD for loss of goods destroyed that happen due to insufficient management of product distribution as well as product lifecycle management. Working capital requirements of around 3000 million USD for financing inventories of finished goods are also the weaknesses of the firm. |
Opportunities |
Threats |
The most profitable markets of European region, gulf, Russia is the cigarette industry. Revenues can be stabilized to increment of consumer prices at a point of sale does taking advantages from legal taxation models that forces the prophets of recognition in countries with loan tax rate. Market activity to environmental productivity program question counter acts operation train or flat revenues and program having clear objectives and uses cost of manufacturing by improving relations as well as machine optimization that helps in increasing the efficiency of labor as well as quality. The manufacturing cost savings of up to 500 million USD can be achieved through superior quality of manufacturing in a strategic market (Van Liemt, 2002). |
One of the major threats of Upsmoke corporation is the low shelf availability of retailer of smoke products. Upsmoke Corporation achieves markets availability of shelf of only 90% that is lower to its competitors having up to rate of 95%. According to Herter (1999), cigarette smokers tend to be disloyal to the products that give the ability which results in immediate loss of sales. Moreover for 6 month old products are sold that disrespect the freshness in consumer focus. The supply chain management also takes 3 months for planning and delivering for products which are required currently. |
Table 1: SWOT analysis of Upsmoke Corporation
(Source: Case study)
Upsmoke Corporation being world's largest manufacturer of cigarettes has a market volume of around 750 million as well as worldwide market share of 15.7%. With operation in more than 180 countries cigarettes are present in 50 facilities worldwide to meet the present customer demand. UpSmoke Corporation would try to enhance the supply chain performance through customer relation. Consolidation might cause by taking over from a large company (World Health Organization, 1997). Diversification is another key idea that will need to slow growing market opportunity through several dimension of diversification by targeting diversification of tobacco products as well as geographical region. Productivity is the third idea for boosting the supply chain performance to improve cigarette machine that will increase the production rate of the overall company. Rapid growth of product portfolio will also help to strengthen the brand image and boost the performance constant through the supply chain performance improvement.
Upsmoke Corporation can improve the supply chain management the rapid growth of product portfolio. New product launches as well as promotions can be effective tool for strengthening the corporate image and gaining shares from competitive markets. Reducing setup times as well as resource utilization targeted properly for other factories can be done so high invented is natural achieving cost efficiency. Lead time can be shortened by getting there quick reaction from demand changes as well as achieving higher order fulfillment rate. The sales forecast can be increased through taking adequate decision within the organization (Herter, 1999). Lean management system can be adopted in the supply chain improvement performance. The four factors of lean can be taken into consideration in which the supply chain management process can we improved for Upsmoke operation. Manufacturing will be done of the pull system in which the manufacturing will only be done based on the total number of demands by the customers. This will help in reducing and elimination of waste as well as time and help in improving the quality of the products. Short amount of product will be manufactured that will ensure that the quality of the product is sustained.
Improvement concept which describes at least 5 key ideas to boost the supply chain performance at Upsmoke Corporation
A change management plan characterizes exercises and parts to oversee and control change amid the execute and control phase of the venture. Change is measured against the venture benchmark, which is a nitty gritty portrayal of the venture's extension, spending plan, timetable, and arrangements to oversee quality, hazard, issues, and change. Amid the execute and control arrange, changes may require at least one reexamined extend baselines to be issued. According to Van Liemt (2002), change can happen all through the venture life cycle. A Change Management Plan controls the impact of changes amid the execute and control organize, in this manner maintaining a strategic distance from overwhelms in cost and calendar, indiscernible extension, low quality, and so forth. The Change Management Plan is basic to the accomplishment of the venture. There ought to be no change without assessment and endorsement.
According to the case study, the techniques that Upsmoke corporation uses for strenthening the buy-in includes make-and-buy strategy of manufacturing for fulfilling the demand of amrket in around 180 destinations. In-house manufacturing is used for high volume and international products as well as manufacturing strategy that focuses on products which are niche as well as have legal agreements of trading. Cigerrates with around 8000 different products has a wide variety of shipped and prodcuts of the customers.
Conclusion
It can be concluded that the significant qualities of Upsmoke Corporation is that it has developed tremendous stock contrasted with the opposition giving a decent administration level to all the 180 markets. 36 processing plants running in a method of cost effectiveness past 95% limit use. Significant shortcoming of Upsmoke Corporation is the storing aftereffect of privileges of about around 200 million USD for loss of merchandise wrecked that occur because of inadequate administration of item appropriation and in addition item lifecycle administration. Showcase action to natural profitability program address neutralizes operation prepare or level incomes and program having clear destinations and utilizations cost of assembling by enhancing relations and in addition machine advancement that aides in expanding the proficiency of work and in addition quality. The dangers includes Upsmoke Corporation accomplishes markets accessibility of rack of just 90% that is lower to its rivals having up to rate of 95%. Cigarette smokers have a tendency to be unfaithful to the items that give the capacity which brings about quick loss of offers. Solidification may bring about by assuming control from a huge organization. Expansion is another key thought that should moderate developing business sector opportunity through a few measurement of broadening by focusing on enhancement of tobacco items and in addition topographical area. Efficiency is the third thought for boosting the store network execution to enhance cigarette machine that will build the creation rate of the general organization.
References
Corrao, M. A. (2000). Tobacco control country profiles, American cancer society, Atlanta, USA.
Herter, U. (1999). Competition in cigarette industry, Tobacco Journal International (TJI), 3(99), 23-45.
Van Liemt, G. (2002). The world tobacco industry: trends and prospects, working paper, international labor office, Geneva, Switzerland.
World Health Organization (1997). Tobacco or health: A global status report, WHO, Geneva.
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