Supply Chain Management Strategy

Supply Chain Management Strategy

The main goal of supply chain management is to meet the needs of the customer better than the completion. The company must build processes to design, make, and deliver the state-of-the-art, high-quality, low-cost products and services that customers want. Supply chain management lets the company focus on what they do well and outsource other activities that they suppliers are experts in doing. Relationships are customary to guarantee that each company in the chain achieves and improves the success of the supply chain from start to finish (Fawcett, Ellram, & Ogden, 2007).

Supply Chain Management Theory

The Hangzhou, China plant of Riordan Manufacturing arranges its own forecast of electric fan sales throughout the world including the United States. To meet the customer demands the China plant schedules production of the fans to the forecasted sales. The completely assembled electric motors are bought by the China plant’s purchasing department from a local Chinese company. The China plant uses a local company as a supplier for the plastic polymers that are used in the injection molds to produce the plastic parts for the fans (Apollo Group, Inc., 2012).

Over the past year the company has averaged 93% of on time deliveries while trying to keep enough inventory to meet the requirements of the demand. Orders can be picked up at the plant, shipped anywhere in China using a Chinese shipping company, or shipped internationally by Fed Ex or a competing Chinese shipping company. When shipping internationally the product has to go through customs then a broker to a transportation company to the Fed Ex to the customer (Apollo Group, Inc., 2012).

Competitive Strategy

Creating relationships with existing and prospective suppliers and customers is vital to the success Riordan’s competitive strategy. The relationship building with