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Essay / Peerless Products Inc. Independent Study - 750
1. Let's say you are the CEO of Peerless Products and you are aware of the lack of overall end-to-end capability for this chain in your company. What are the significant negative impacts that could occur on your business? You may see decreased margins due to increased expedited shipping costs. Slow market growth, loss of market share, possible increase in cost of goods sold, decrease in cost of goods sold, lower than normal performance targets, increased cycle times, you may see an increase in complaints from key customers for the poor. service and customer service, response times and poor supplier performance. Not to mention changes in local, national and international raw material prices for goods required for the manufacturing process, such as energy, fuel and transportation costs, etc.2. What steps would you recommend taking to avoid the type of negative impacts identified above? Understanding the necessary supply chain capabilities before embarking on business in a global market is a good idea, before trying to find and fill market gaps. a dike is necessary. Implement a strategic plan that can be quickly replicated across the organization, strengthen supplier relationships, set quality expectations for suppliers using a supplier performance scorecard to measure compliance. Optimize logistics and manufacturing capabilities, synchronize business units using information technology and, to drive organizational effectiveness, create a culture of action. Set goals for a sourcing strategy. This means internal, or possibly external, staff capable of developing new capabilities seamlessly. The following performance areas can help identify highest priorities as follows: Use total cost of ownership assessments to b...... middle of paper ......e time required to transform inputs in a process and until its finished output, is the cycle time. The goal is to reduce the time it takes to make something, while improving the quality and profitability of the production process, whether it is a physical product. Clearly defining this stage of procurement is essential to its success, as is identifying suppliers and using supplier scorecards. . It is also imperative to use the latest software to synchronize these systems and manage information and communication between all stakeholders. The goals of the VP of Supply Chain and Manufacturing should be the same. A commitment to improving supplier relationships, improving TCO and efficiency throughout the supply chain while simultaneously improving quality and customer service, which in turn improves ROI and profits..