I have created an e-business that I called “Season Survivor.” It sells everything that you need to survive the season, online at a cheap price. Now, when the winter season is here, “Season Survivor” sells winter supplies. The products my company sells, shall be necessity products: Winter supplies to keep yourself and your family warm. Products to keep your house safe and your car going when the thermostat freezes to ice.
My mission is to “become successful in providing a place where people can buy everything they need for the season, at a low price with high quality products.”
To be able to fulfill my mission I have chosen a Low-Cost Leadership Strategy. A critical factor is ...view middle of the document...
A firms supply chain is a network of organizations and business processes to transform raw materials to finish products and deliver them to customers. Inefficient supply chains are caused by inaccurate or untimely information, which can waste as much as 25% of a company’s operating cost. For “Season Survivor” to survive, and become successful, operating cost need to be as low as possible. An efficient supply chain is a key element in my strategy. Supply chain software is therefore a part of my IT plan.
There are two main types of supply chain software: Supply Chain Planning Systems and Supply Chain Execution Systems.
As mention before, all my information systems, as fare as possible, shall be standard packages. This includes my supply chain software . An important function in my supply chain planning system would be de demand planning. My supply chain planning software is a way to connect with my suppliers. When my company makes a change in their demand forecast for the next season, my suppliers can act immediately. My suppliers will use this to plan their production. I will also estimate shipping time, a factor deciding when my suppliers need to start their production. The product shall be at “Season Survivors” warehouses before the first possible day of the new season.
My supply chain execution system will help me manage the flow of products. Getting them thru every step in an efficient manner. And it enables me to track the physical status of my products.
The Internet technology has made it easier for information to run smoothly, thru both the internal and the external supply chain. I will use intranet to make the members of my internal supply chain communicate and share information. The intranet has to be secure, to make sure that no information gets lost, stolen or manipulate. To coordinate with my suppliers, I will use an extranet. This gives all members of my supply chain up-to-date information.
How my supply chain will work:
Production – Outsource to my main suppliers in China.
Transportation – Outsource to a company who have ships that goes from China to the US.
Storing – Rent a warehouse near the sea.
Selling – Thru “Season Survivors” website. My company shall have its own employees who manage this part of the supply chain. This department will monitor customer’s orders.
Customers – An own customer support department to customers who have questions regarding our products, or want to return some of them. This part shall not be outsourced, because I want to have control on customer’s feedback and give them the best service possible.
IS that support communication with suppliers: My suppliers are located in China. It is expensive to fly over there, both in time and money. It is however necessary to have regular meetings with them, to exchange information and maintain a good relationship. To minimize these costs I would invest in a simple, Internet-based video conferencing system.
I have already...