The Spartan Supply Chain

1025 Words5 Pages

Secondly, the unique set up and sequencing of process step of the machinery required by each customer order caused a financial waste and wasting time each time when the manufacturing department start to produce a new customer order. As a machinery was not operating in the same sequencing of process step that may lead to a higher probability of production error and decrease the quality of final product. It also lead to a longer lead time for the finished good or reduce the potential capacity of machinery. Thirdly, a highly skilled workers and a number of designer and researcher are needed under the customization strategy, therefore, Spartan is spending much more on the labour wages than its competitors as usually highly skilled workers have …show more content…

• Consolidation of the supply chain; a further efficiencies and operational advantages because of buyers have better understanding of suppliers’ services and products. Disadvantages: • Barriers to exit relationship as buyers rely materials supplied by their long term suppliers • Difficult to test supplier price and sourcing from time to time • Miss out on innovation from other supplier as long term relationship discouraged new supplier entry into the market. Alternation 2 will be introducing the just in time inventory system in order to reduce the hold of average inventory as Spartan can receive inventory from suppliers when they are required. Advantages: • Reduce the inventory holding cost and space with the respect of higher level of inventory turnover. • Waste reduction from prevents inventory become obsolete while holding the additional inventory as Spartan has a faster inventory turnover. • More fund available due to the small amount of inventory ordered at once. Disadvantages: • Highly risk of materials shortage because of carry less stock. • Lack of control over time as inventory order rely on the timeliness of …show more content…

• Heavily rely on supplier due to hold low inventory level Alternative 4 is to keep the old customization supply chain strategy while figure out best solutions to solve the current issues. Advantages: • Maintain currently customer who willing to pay a higher price for customized product. • Healthy customer relationship as high satisfaction from customers. • High uniqueness. Disadvantages: • Required a solution to solve the current issues. • Less market share of customer who looking for low price and fast delivery lead time. • Higher operating cost as a result of require more high skilled employees. Alternative 5 is to implement the new standardization supply chain strategy and achieve the new business goals and objectives. Advantages: • Reduce operating cost and waste; less worker and raw material needed. • Improve productivity and consistent quality as a result stable work process. • Elimination of error due to repetition of manufacturing process. Disadvantages: • Loss of uniqueness as company only produce a few high volume products. • Loss of responsiveness. • Lack of

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