4 November 2014
Supply Chain Management
DIMCO's Supply Chain
A supply chain by definition is a network created among different companies. for producing, handling and/or distributing goods. The supply chain encompasses the steps it takes to get a good and/or service from the supplier to the customer. (investopedia). The supply chain of DIMCO applies: outsourcing by buying manufacturing inputs from a variety of international suppliers; internal manufacturing of numerous consumer electronics; central warehouse that supplies the final product to ten regional distribution centers, which in turn supplies the products to associated local distributors, who have ties to numerous retailers so that the product can reach the consumer.
The Advantages of Supply Chain Management Implementation
If DIMCO implemented a supply chain management team, they could increase the effectiveness of their over all supply Chain. It would increase their responsiveness to demand changes. As well as lower expenses such as Operating, logistic, and material costs.
They would also have the capability to integrate several inventory sites which would decrease risk and increase flexibility. The use of IT would help link all the processes of the supply chain. The implementation of this would increase the confidence between supplier and distributor as well as help with planning and forecasting, which would increase efficiency, eliminate waste, and maximize profits.
I think that it would be in DIMCO's best interest to seek the integration of both suppliers and distributors. DIMCO's Management has to understand that the assimilation of the processes within the supply chain will increase pace and efficiency as well as lowering costs.
Recommendation for External Suppliers
Management in DIMCO should use a replenishment strategy for their manufacturing inputs. This strategy would be based off a predetermined forecast and demand schedule. If they use this...