David answered on Dec 28 2019
Supply chain risk, complexity and disruption management
Analyzing supply chain problems in Maerskline
Supply chain forms an important aspect of delivering efficiency in operations of the organization. There are several risks involved in the supply chain management of a large scale organization and failure or disruption of the supply chain can result in several issues for an organization. A firm like Maersk whose strategic goal is to reduce complexities involved in supply chain and help other firms connect to global markets, ensuring higher levels of risk management and quality in supply chain is very crucial.
The Toyota car product follows the system of ‘Just in time’ theory for timely delivery of the cars. The production is calculated on minute’s basis. There are multi-skilled workforces who deliver the same with efficiency. Present day organizations are able to do this with ease as technology assistance is available to them. ERP and other business information system software enable firms like Maersk to be able to implement JIT and other supply chain management processes with ease.
A logistics firm has to focus on delivering goals that help the organization build better competencies and grow in terms of forming long term sustainability. It is crucial to deliver long term sustainability in logistics and ensure that there is growth. It is important that there be long term evaluation of the impact of logistic tools used by an organization and how they resolve the possible risks involved in it. Only then a sustainable solution can be discovered. It is also quite important that Maersk understands how the supply chain works in tune with other supply chain partners in order to deliver better solution.
It is extremely important for a business to be able to create an effective SCM strategy where in there is an understanding of how the organization needs are met. It is important to formulate an understanding of what value elements are to be created and how they are to be managed in order to evaluate the efficiency of the system. It is also crucial that there be detailed planning and understanding of the processes involved in the management of the logistics of the organization. At the same time it is crucial that the details of the logistics and supply chain be well understood by the employees of the organization so that they ensure the implementation of logistics plan and methods. It is crucial that there be evaluation of the tools and strategies used in the management of the supply chain of the organization so that there is long term sustainability achieved in the formation of a better competency and efficiency. Only then it is possible for them to grow as an organization and develop competencies that are sustainable (Monczka R, Handfield R, Giunipero, L, & Patterson, J 2008).
Background of the firm
Maersk is one of the largest logistics firms worldwide with a strategic objective of creating a supply chain at the global level which helps sellers meet buyers at a fastest possible pace. They help connect buyers and sellers from all parts of the world through shipping their products. It forms an important aspect of delivering a solution that is sustainable and also viable from the long term perspective. It is crucial to deliver improved value chain in order to form better levels of supply chain processes in an organization. Maersk formulates a level of information technology which helps them build long term solution for the purpose of improving their supply chain. Maersk uses IT to improve its supply chain to a great extent (Monczka R, Handfield R, Giunipero, L, & Patterson, J 2008).
SCM is primarily influenced by promptness of the processes and the businesses should ensure efficient delivery systems, flexibility, and adoptability to meet customer satisfaction whilst understanding risk levels. In addition SCM management cost and company´s overall overhead costs are extremely vital and any reduction can be passed on to the end customer to entice repeat purchase resulting further growth in the industry. This should be done based on technological and a sound supply chain (Bowersox D J, Closs, D J, & Cooper, M. B, 2002).
Supply chain management requires long term focus and strategic growth. Usage of technology and information systems in present times becomes extremely essential. It would be possible to build the right level of economy of scale and operational efficiency only when technology is suitably adapted and integration is made possible. In today’s context supply chain system in an organization is eminent for various factors such to improve efficiency levels, track and trace, generation of reports to name a few which would assist to be more competitive in the market. An effective supply chain could create higher level of value addition to the customers for a company such as Maersk.
Supply chain risks or issues faced by the firm
Managing risk is an important element in case of supply chain. In case of Maersk risk management has been imbibed in its technology systems where in they cater to surplus stocks and the management of buffer inventory. Measuring the value of IS and IT departments is extremely essential. Maersk uses these elements to build a better level of supply chain and achieve higher competencies in managing the logistical operations of its business. Supply chain management plays a vital role in a business entity and requires detailed planning and execution for the business to be successful. Effective planning and co
ect decisions should be made throughout the supply chain from souring of raw material for production till the finished product reaches the consumer whilst ensuring deadlines and cost effectiveness (Bowersox D J, Closs, D J, & Cooper, M. B, 2002).
It is no more a high profit margin business and is becoming more and more difficult to be managed. In such circumstances, it is important for firms in this industry to try and focus on operational efficiency. A strong supply chain can help firms ensure lower costs of operations. At the same time it can help enable faster delivery or distribution of oil and gas which can ensure effective business operations and competitiveness (Bowersox D J, Closs, D J, & Cooper, M. B, 2002).. It is extremely important for the oil and gas firms to build credibility and growth based on the delivery of resources and products on time. A strong supply chain can enable the firms to ensure that they safely and quickly transport customer goods in an effective manner. The other issues that need importance relatively would be the production based on the demand. The demand indirectly depends on the services given by the business to the customers by meeting the demand on time (Bowersox D J, Closs, D J, & Cooper, M. B, 2002).
There are also challenges involved in the products reaching the customers on time. There may be scenarios where the customers may cancel the booking. These challenges can be cu
ed by giving the car for the one time offer in the later part of the year. Here, in order to avoid the cancellation of the booking the option of offers could be attached (Bowersox D J, Closs, D J, & Cooper, M. B, 2002). It is important for the firm to use a retail outlet supply chain management strategy along with outsourcing in order to provide a cost effective...