Description
Read Case Problem 10.1 at the end of Chapter 10: Somerset Furniture Company's Global Supply Chain
Write a 1,050- to 1,400-word paper in which you address the following questions:
- Discuss Somerset's global supply chain and possible remedies for its supply chain problems.
- Including strategic and tactical changes that might improve the company's supply chain performance, reduce system variability, and improve quality and customer service.
- Explain how Somerset could use elements of project management to help them implement the changes needed.
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Explanation & Answer
Attached.
Running head: GLOBAL SUPPLY CHAIN PROBLEMS
Global Supply Chain problems
Institution Affiliated
Date
1
GLOBAL SUPPLY CHAIN PROBLEMS
2
Analysis of the problem
Global supply chain refers to a network of companies that produce, handle and distribute
commodities across national borders. The activities in a global supply chain may include
conversion, procurement, sourcing, and management of logistics. Any problem arising from
these activities can hamper the entire process of global supply chain. Somerset Furniture
Company is a victim of global supply chain problems and this threatens its efforts to enhance
customer satisfaction. Although its strategies to outsource all its activities saved the company
from collapsing, the very nature of outsourcing opened a series of new challenges that have
culminated to problems for the company. Some of the problems stem from the fact that it
outsourced production very far, which means it takes a lot of time to have orders delivered to the
customers. The company gets raw materials from the United States and South America and ships
them to China when actual production occurs. To avoid damage to the products, the products are
shipped to America in their intermittent form. Assembling then occurs from the warehouse in the
United States before customers can have their orders delivered. This practice causes logistical
delays which further delay orders, giving rivals the advantage.
Possible remedies
The most important thing in solving global supply chain problems is adopting a global
supply chain design that suits the line of business for the business (Meixell & Gargeya, 2005).
This should start by acknowledging the possible risks that coul...
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