Rjct Task 3
A. Supply Chain Strategy: I recommend the Keiretsu networks as the correct supply chain strategy for the power tool company. The three main strategies are the Keiretsu network, virtual company, vertical integration. All of them have their advantages and disadvantages.
In a Keiretsu network the manufacture will combine the best features of all three methods, it is part collaboration, using fewer suppliers and some vertical integration. An example of this style of Keiretsu network would be that the tool company can work closely with one supplier, such as a parts maker but not by buying out the company. Here the commitment to a long term business relationship promises continued mutual growth. They collaborate with each other and share expertise to improve their production.
A virtual company is a network of independent companies—suppliers, customers, competitors, that are joined by information technology or intranet to share expertise, labor, costs, & access to each other 's markets. Such companies are normally formed on the basis of joint venture agreement with little or no organizational chart. This fluid style reduces the impact of the agreement on the individual organizations and facilitates adding new players with new skills and resources. Such deals can be temporary and the dissolved once the business objectives are met. A virtual company is rarely associated with a brick and mortar identity of itself.
In vertical integration the power tool company owns all aspects of the supply chain. The company would purchase or have the resources to manufacture all of the internal parts of the power tool equipment. The manufactures would buy out the distributor or the supplier. There could be backward integration where the manufacturer decides to build its own parts for the power tools. Forward integration would be purchasing a manufacturer that makes the finished products. In this model it is difficult to do everything by itself.
I recommend using the
In a Keiretsu network the manufacture will combine the best features of all three methods, it is part collaboration, using fewer suppliers and some vertical integration. An example of this style of Keiretsu network would be that the tool company can work closely with one supplier, such as a parts maker but not by buying out the company. Here the commitment to a long term business relationship promises continued mutual growth. They collaborate with each other and share expertise to improve their production.
A virtual company is a network of independent companies—suppliers, customers, competitors, that are joined by information technology or intranet to share expertise, labor, costs, & access to each other 's markets. Such companies are normally formed on the basis of joint venture agreement with little or no organizational chart. This fluid style reduces the impact of the agreement on the individual organizations and facilitates adding new players with new skills and resources. Such deals can be temporary and the dissolved once the business objectives are met. A virtual company is rarely associated with a brick and mortar identity of itself.
In vertical integration the power tool company owns all aspects of the supply chain. The company would purchase or have the resources to manufacture all of the internal parts of the power tool equipment. The manufactures would buy out the distributor or the supplier. There could be backward integration where the manufacturer decides to build its own parts for the power tools. Forward integration would be purchasing a manufacturer that makes the finished products. In this model it is difficult to do everything by itself.
I recommend using the