Finding the Right Strategy for Our Company Will Be the Start of Our Supply Chain Strategy. the Main Three Are the Keiretsu Network, Virtual Company, Vertical Integration.
Supply Chain Report
Finding the right strategy for our company will be the start of our supply chain strategy. The main three are the Keiretsu network, virtual company, vertical integration. All three have their advantages and disadvantages. An example of a Keiretsu network would be our company working closely with a supplier, such as a motor manufacturer but not necessarily owing their company. A virtual company is network of independent companies—suppliers, customers, competitors, linked by information technology to share skills, costs, and access to one another 's markets. Such organizations are usually formed on the basis of a cooperative agreement with little or no hierarchy or vertical integration. This flexible structure minimizes the impact of the agreement on the participants ' individual organizations and facilitates adding new participants with new skills and resources. Such arrangements are usually temporary and dissolve once a common goal is achieved. A virtual enterprise is rarely associated with an independent legal corporation or brick and mortar identity of its own. (David Johnson, 2011) Finally vertical integration is one that we own all aspects of the supply chain. Our company would purchase or have the resources to manufacture all of the internal components of the power equipment. Of the three I would recommend using the Keiretsu network. Using this network allows us to have lower cost than a vertical integration. We also plan on running this company for a long period of time so I don’t feel that a virtual company would do well in the long term plans of this company. While the vertical integration strategy would be effective in managing our supply chain the cost associated with it would be much more than the Keiretsu network.
The metrics we would use to measure the supply chain would be DPMO, Case Fill Rate, and Inventory Turnover. DPMO stands for defects per million opportunities this would be important to calculate how the qualities of
Finding the right strategy for our company will be the start of our supply chain strategy. The main three are the Keiretsu network, virtual company, vertical integration. All three have their advantages and disadvantages. An example of a Keiretsu network would be our company working closely with a supplier, such as a motor manufacturer but not necessarily owing their company. A virtual company is network of independent companies—suppliers, customers, competitors, linked by information technology to share skills, costs, and access to one another 's markets. Such organizations are usually formed on the basis of a cooperative agreement with little or no hierarchy or vertical integration. This flexible structure minimizes the impact of the agreement on the participants ' individual organizations and facilitates adding new participants with new skills and resources. Such arrangements are usually temporary and dissolve once a common goal is achieved. A virtual enterprise is rarely associated with an independent legal corporation or brick and mortar identity of its own. (David Johnson, 2011) Finally vertical integration is one that we own all aspects of the supply chain. Our company would purchase or have the resources to manufacture all of the internal components of the power equipment. Of the three I would recommend using the Keiretsu network. Using this network allows us to have lower cost than a vertical integration. We also plan on running this company for a long period of time so I don’t feel that a virtual company would do well in the long term plans of this company. While the vertical integration strategy would be effective in managing our supply chain the cost associated with it would be much more than the Keiretsu network.
The metrics we would use to measure the supply chain would be DPMO, Case Fill Rate, and Inventory Turnover. DPMO stands for defects per million opportunities this would be important to calculate how the qualities of
Bibliography: David Johnson. (2011, June 6th). Virtual Companies. Retrieved September 16th, 2011, from New York Law School: http://vermontvirtual.org/Virtual Companies EHOW MONEY. (2011, April 4). Important Issues in Supply Chain Management. Retrieved September 16th, 2011, from ehow Money: http://www.ehow.com/info_8195994_important-issues-supply-chain-management.html Project Management Source. (2009, April 7th). Functional Orgazitional Structure. Retrieved September 16th, 2011, from Project Management Source: http://www.project-management-course.info/functional-organizational-structure/