Supply Chain Essay Example | Topics and Well Written Essays - 5250 words

Supply Chain - Essay ExampleII. Options of good word of a supply chain strategy Keiretsu net study The business will utilize the keiretsu network for the indicant bill society. Keiretsu is a network of organizations linked together by having a stake in all(prenominal) others organization. The structure is usually likened to a spiders web and was designed to diffuse the adversarial relationship between buyer and provider. The supplier also becomes a stakeholder of the organization and this set up induces the parties to work for their mutual benefit. This kind of relationship promotes cooperation and quislingism as each organization becomes a stakeholder in each others organization whereby all stakeholders will shell give away the fruit of profit or in the case of loss, also a share in the financial setback (Miyashia and Russel, 1994). The parts needed for the power tools (electric drills, saws, and sanders) are highly specialized and costly. It has a high schooling curve and cannot be procured with any supplier overnight because its specifications must be met before it can buy from a certain supplier. Needless to say, a collaborative long-term and non-antagonistic relationship with suppliers is favorable for the company callable to the requirements of its parts. The keiretsu procurement network serves this purpose. This kind of procurement strategy is aligned with the companys vision of producing the highest quality for its power tool because the company will be working close with its suppliers. Keiretsu is basically a collaborative supplier-client networking where each participant has a stake in each other and this kind of supplier chain relationship serves this purpose. proponent tools depend on the quality, seasonableness and reasonability of the cost of its parts and it is imperative that the supplier that provides the parts of the power tools is perpetrate to delivering its supplies according to those requirements. Of all the supply chain st rategies, keiretsu network is the best option that serves the companys objectives. The best way to confide suppliers to provide supplies of quality, timely and cost effective is to build a relationship with them whereby the company can work with the supplier on how to bankrupt achieve these business objectives. This will not only produce better power tool products, but also allow better prices making the company more hawkish in the market making keiretsu a top choice. The only downside of keiretsu network is that if a non-performing (tardy on delivery) and substandard (not meeting specifications) supplier is ill-treatly chosen, it would be difficult shake it off because the company has committed itself on a long-term basis, especially if there is a contract between the two parties. These issues can be easily remedied. For the issue of incorrectly choosing non-performing and substandard supplier, the power tool company must first pee-pee a strict criteria before looking for a s upplier. These criteria must reflect the objectives, quality standard and timeliness of the company and must be met by the supplier in consideration. This would avoid incorrectly choosing a wrong supplier. For the issue of binding the company to a wrong supplier, it can be remedied by stipulating an opt out and a fine in the event that supplier will renege the contract. This will compensate the company for any