This paper looks at the steps used to develop a perfect supply chain for the distribution of watches. A perfect chain supply is a clear roadmap for the movement of products from the manufacturing or assembling unit to the last location from where customers can easily access the product. A perfect supply chain should be adopted on channels that minimize unnecessary activities in the total output of the supply chain flow (Blanchard, 96).
Activities that can be omitted should be left out of the supply chain so as to reduce expenses and increase profits. Time is a very important resource considered in the supply chain, a perfect supply chain is one where products are delivered to required destinations within time.
Perfect supply chain
The success of a supply chain depends on the efficiency in the mode of distribution of the products to the consumers. This requires market research and evaluation (Frazelle 65). The demand for clocks and watches is high especially with the modern lifestyle that demands time consciousness. Current production rates don’t match the demand and therefore the need for a watch production unit that will also adopt a perfect supply chain to meet the demand. For efficient and effective production of the watches, all watch parts shall be sourced from reputable manufactures and assembled at the local plant. This will reduce the enormous cost of manufacturing the parts so that the company focuses purely on the task of assembling the parts and distributing the finished watches.
The watches will be assembled from a central point and then distributed to centers where the customers will be able to access them. The distribution centers will also act as showrooms, outlets and dealers for the main production center. The centers shall be spread out to ensure that the watches are distributed to as many geographic regions as possible. The outlets or distribution centers shall be run on an SAP system to ensure the efficiency and accuracy of the supply chain. Ranchhod suggests that companies that have implanted the SAP system in managing the supply chain gain a competitive edge in supply (123).
Sales shall be made through dealers, showrooms and through an online website for the company. Direct sales will also be adopted as a sales strategy to reach out to many customers. The ultimate objective of the enterprise is to secure a lasting partnership with established supply companies. Handfield and Nichols noted that small companies can leverage the high technology of established companies by outsourcing some subsystems to them (138). Outsourcing part of the supply chain will also relieve the company of the heavy investment in supply chain technology as well as the management.
The supply chain diagram indicates how the different channels that will be utilized to move the watches from the assembly unit to consumers. The distribution begins from the warehouse at the assembly unit. The main destination of the watches shall be the distribution centers which also act as the showrooms and dealers. Another distribution channel will be the online website from which consumers from all over the world will be able to order the products. The final channel is direct sales to customers from the assembly unit.
Frazelle, Edward. Supply chain strategy: the logistics of supply chain management. New York: McGraw Hill Inc., 2002.
Ranchhod, Ashok. Strategic Marketing in Practice. Burlington: Elsevier, 2004.
Handfield, Robert B. and Nichols Ernest L. Supply chain redesign: transforming supply chains into integrated value systems. New York: Pearson Education, inc., 2002.
Blanchard, David. Supply chain management: best practices. New Jersey: John Wiley and Sons Inc., 2007.