Competencies
- Describe the supply chain management principles through the flow of information, materials, services, and resources.
- Analyze the external and internal drivers that influence supply chain principles.
- Evaluate supply chain management operational best practices.
- Compare the nature of logistics operations and services in both international and domestic contexts.
- Apply strategic supply chain management to logistics systems.
- Analyze different software systems and technology strategies used in supply chain management.
Scenario
You have just been promoted to Senior Analyst at Mitchell Consulting, a firm that specializes in providing managerial expertise in supply chain management. After completing many assignments under the supervision of a Senior Analyst, your role now allows you to make selections for clients. You are assigned a new client, Scent Solutions. Your new manager, Partner Ronda Anderson, has directed you to work on this case and provide analysis and options to resolve the problems directly to the client.
Scent Solutions is a manufacturer located in Peru, IL. Barbara Jean founded the company ten years ago when she began making scented candles in her basement to sell at craft shows. She began by purchasing all the materials necessary to make her candles at craft stores, thrift shops, and local big box retailers. Today her company has grown over $1.5 Million in annual sales revenue. Barbara is still purchasing most of her raw materials from the same stores, but she recently started searching for sources to purchase from wholesale distributors. Due to her lack of technology she has experienced difficulty in initiating purchases with wholesale distributors.
Scent Solutions currently sells candles in a variety of scents in the two largest national brand craft retailers in the US. Barbara has 25 employees that work in the operation. Operations are held in a 50,000 square foot building, which houses all raw materials, production equipment, and finished goods inventory. Scent Solutions has seen an increase in direct-to-consumer sales through their company website, Facebook page, and Pinterest postings. She is also negotiating with some big box retailers, which could significantly increase the demand for her line of candles in the near future. All financial records are stored on excel spreadsheets with manually entered data on one PC. Invoices and purchase orders are manually entered on templates in Microsoft Word documents, printed, and filed then given to the accountant for compilation of financial information.
Instructions
Barbara has contacted Mitchell Consulting to devise a plan to support sales growth to $5 Million in sales revenue in the next five years. She also would like for the company to remain ethical and to invest in a corporate responsibility plan moving forward. Create a supply chain-focused business plan for Scent Solutions that includes the following:
1. Supply chain management principles
- Analyze the current supply chain barriers which prevent future growth
- Propose a supply chain structure to support the anticipated growth of sales
- Explain the flow of product, information, and services in the plan that you are proposing
2. Analyze drivers that influence supply chain principles
- Describe the internal influencers that will require changes to execute the plan
- Analyze the external factors that must be considered that will affect the plan
- Recommend the desired type of supply chain that will optimize the company in terms of Lean or Agile
- Examine current industry expectations and customer perceptions in choosing the best strategy
3. Supply chain management best practices
- Propose a collaboration design of information sharing respective to suppliers, inter-company departments, and customers based upon supply chain industry best practices
- Provide guidance on corporate responsibility initiatives in supply chain practices as the company grows
4. Logistics operations and choosing suppliers
- Propose tools to optimize logistics costs in sourcing materials
- Describe the risks and vulnerabilities that influence logistics strategy
- Present strategies to purchase from existing suppliers and evaluate additional suppliers. Consider supply cost, shipping cost, and supplier services to consider in the purchase decision
5. Supply Chain Management - Logistics planning and strategy
- Define the logistics role in planning and operations
- Provide a plan for selecting 3PL-Third party service providers to ship orders
6. Supply Chain Technology
- Recommend a new computer network system for Scent Solutions
- Explain the functions that will be handled by the network
- Explain the functions of an ERP system
- Recommend an appropriate ERP system for Scent Solutions based on your analysis of the company
- Explain the functions of a CRM system
- Recommend an appropriate CRM software program to manage customer relations