123 Kingfisher Street
619 Buyaka Ave
Dear ADF Engineering,
Your case study has been extensively examined by the consultancy panel. The information within this report would be highly beneficial to many businesses whom seek to reassess operations processes and in effect, achieve competitive advantage. Through the aid of this report, ADF Engineering should be able to successfully navigate its current supply chain management issues; such as global sourcing, e-commerce, logistics and as a result understand how these changes are crucial in creating or sustaining a competitive advantage. To assist in the exploration of outsourcing, advantages and disadvantages have been listed that should assist when decision-making or undertaking research and development. The consultancy has also identified and recommended that ADF Engineering, incorporate speed and quality strategies in order to improve the operations of the business. It is intended that this report provides detailed and suitable recommendations to your satisfaction.
Supply Chain Management (SCM)
SCM involves integrating and managing the flow of supplies throughout the inputs, transformation processes (throughput and value adding) and outputs to best meet the needs of customers. There are three key aspects to supply chain management:
Global sourcing is all about when businesses purchase supplies or services without being constrained to location. In Supply Chain Management however, global sourcing means purchasing or sourcing from wherever the suppliers are that best meet the sourcing requirements. The challenges associated with this however, are that Global Sourcing becomes a great expense for many businesses. The benefits for ADF Engineering would outweigh the cost of global sourcing as the products offered are of a superior quality and hence, a competitive advantage.
E-commerce is the buying and selling of goods via the internet. E-commerce is a necessity for ADF Engineering in order to remain competitive, as electronic, retail and repair industries are rapidly incorporating e-commerce into their business operations. Consideration also needs to be made of E-procurement. E-procurement is the use of online systems to manage supply, and allows suppliers access to the business’s level of supplies. This is a great investment for any business and in particular ADF Engineering. It will allow for accurate stock take as well as analysis of supply level and leaves minimal chance for human error. E-commerce provides customers with flexibility and higher levels of customer satisfaction. It also means for ADF Engineering, that they will be better suited to compete against overseas markets and competitors.
Logistics refers to distribution but includes transportation and its modes, the use of storage, warehousing and distribution centres, materials handling and packaging. Logistics is concerned with the physical movement of inventories. Changes to logistics are paramount to the success of a business and in competing against overseas competitors. A business which has been able to use the influence of logistics to its full potential was the Toyota Factory in Australia which became the first of its kind to produce and construct cars from their own resources, rather than importing parts globally.
Outsourcing is amongst the most influential on the operations function. It either makes or breaks a business. Outsourcing is when an outside business manufactures a component part or assembles a product for the operations function of a business. Outsourcing is paramount to the level at which businesses may compete in their respective markets. The Advantages and disadvantages associated with outsourcing are listed below and should be a guide as to whether or not the benefits outweigh the risks.