SURPLUS STYLES
Identify the steps that Derick should take to solve his problem.
Derick should firstly identify the factors that this organic process would entail. He has to ensure that whatever adjustments in the supply chain strategy he will implement should drive and support the business strategy as a well designed supply chain can provide competitive advantage. In order to continue leveraging the competition and maintain the same path of gaining costs reductions and compete on a cost productivity advantage he can opt to increase sales volumes or utilize an efficient supply chain network. Efficient supply chain network can increase efficiency and improve productivity as such reduce overall cost per unit.
He should research potential suppliers assess the cost of possible outsourcing also identify key technology to assist with this new direction. Establishing and building new relationships through the supply chain will be paramount since the strategy has now changed. Investigating the competition, possible merchants and associated costs of other suppliers should be an avenue to pursue as even though the focus was initially on costs the priorities have now shifted as organic and eco friendly products are more expensive than regular products. Getting all aspects of the chain aligned and workable to fit the modified supply chain design should take precedence.
Should Derick ask for the required changes from the current suppliers? If they do not comply, should he solicit new suppliers? How might he do this?
It is definitely ok for Derick to ask for the required changes from the current supplier. He has maintained and fostered a relationship with them over the years and this can also be viewed as part of building further relationships in the supply chain. If they are not familiar with organic eco friendly products they could be afforded the first opportunity to continue business provided they are willing to facilitate the request. This can mean new future potential business for
Derick should firstly identify the factors that this organic process would entail. He has to ensure that whatever adjustments in the supply chain strategy he will implement should drive and support the business strategy as a well designed supply chain can provide competitive advantage. In order to continue leveraging the competition and maintain the same path of gaining costs reductions and compete on a cost productivity advantage he can opt to increase sales volumes or utilize an efficient supply chain network. Efficient supply chain network can increase efficiency and improve productivity as such reduce overall cost per unit.
He should research potential suppliers assess the cost of possible outsourcing also identify key technology to assist with this new direction. Establishing and building new relationships through the supply chain will be paramount since the strategy has now changed. Investigating the competition, possible merchants and associated costs of other suppliers should be an avenue to pursue as even though the focus was initially on costs the priorities have now shifted as organic and eco friendly products are more expensive than regular products. Getting all aspects of the chain aligned and workable to fit the modified supply chain design should take precedence.
Should Derick ask for the required changes from the current suppliers? If they do not comply, should he solicit new suppliers? How might he do this?
It is definitely ok for Derick to ask for the required changes from the current supplier. He has maintained and fostered a relationship with them over the years and this can also be viewed as part of building further relationships in the supply chain. If they are not familiar with organic eco friendly products they could be afforded the first opportunity to continue business provided they are willing to facilitate the request. This can mean new future potential business for