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Supply Chain - a Case Study

In: Business and Management

Submitted By kfpanda
Words 3417
Pages 14
Strategy Recommendations
After evaluating the supply chain strategies available, it is our belief that a balanced vertical integration would be the best solution for ABC Co. In order for ABC Co. to better serve their customers and ensure that products reach their distribution centers and stores in a timely manner, it is important that ABC Co. has a sound strategy for each step of the manufacturing process; from the factory that produces these tools, to the distributing warehouses, to the sales offices.
Advantages
By using the balanced vertical integration strategy, ABC Co. will be able to keep track of both the processes from start to finish. This includes managing the raw material production, manufacturing, assembly and the distribution processes. ABC Co. will also be able to ensure that the end products will reach their sales offices and their customers in a timely manner. They will be able to improve their supply chain coordination and reduce the waste between each step of the process.
A Balanced vertical integration strategy will also allow ABC Co. more control over the supply chain. This strategy will let ABC Co. more control over the production as well as the distribution aspects of the supply chain; giving ABC Co. the ability to dictate the production process, controlling what and when to produce, as well as how to present the product and the price to sell the product. All these steps translates into a significant cost reduction as it eliminates the needs to have a middle man and thus reduces the mark-ups that customers will receive. ABC Co. will also be able to optimize the process from production to distribution by reducing the waste as well as optimizing the utilization of resources. One common way of reducing such waste is the ability to lower transportation costs along each step of the supply chain.
Metrics used to measure performance of the Supply

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