Supply Chain Management at Dream Beauty Company
Question
CASE STUDY
Review Case 11, Supply Chain Management at Dream Beauty Company
Assignment Outcomes :
Analyze network design systems
Evaluate operations analysis and performance assessment, risk and sustainability to SCM.
Contents
Introduction
The last few decades represents the scenario when the logistics business has evolved out to e a most profitable invention for every globalized company. A company having a strong supply chain base can hold its success in terms of transporting its goods and services to their respective stores in an effective way as well as storing and the mobility of the raw materials in their inventory becomes fine arranged (Pettit et al., 2010). It has been seen that the current practice of the supply chain management draws attention from various fields like engineering, logistics, IT, procurement and also in terms of marketing of various products and services.
Analysis
In this following research analysis, the current Supply Chain management practices of the Dream Beauty Company which is a manufacturer of various beauty products and cosmetics products have been taken into account. The company is a US based corporation situated in Money City, Nevada and is recognized for supplying authentic cosmetic supplies to the consumers through its various stores (Bowersox et al., 2002). The analysis of the various supply chain initiatives taken by the management of the company to enhance their operations and also to grow their business through proper network designing of the particular procedure has been illustrated here. The current market scenario establishes the fact that there has been constant evolution in the terms of the technology and suppliers in the arena of supply chain management or logistics. Therefore for any company it will be the major priority to go through a proper and systematic method, to keep up with the rapid pace of change in the particular sector. Recently, the company Dream Beauty have hired a professional supply chain expert by the company’s board of directors to enhance their supply chain operations. The main proposal behind this act was to give more attention towards the supply chain operations of the company. The past few months had witnessed the scenario when the company DB has been facing an increased cost in the area of logistics and so regarding the issue the management of the company became quite anxious about the current status of the supply chain operations of the company. With the inception of the new supply chain expert, the company reached its annual sales to be increased by $130,000,000 which the management of the company though nothing but the outcome of the proper attention over the supply chain costs (Bowersox et al., 2002).
Solution
There have been three distinct channels of company DB for supplying its products. They are the retail stores, convenience stores and mass merchants and each of the stores have their own individualistic profit centre. Among them the mass merchants have been constantly pressurizing the company to make the company DB to take a valuable and good part in managing their inventory. The company is well aware of the fact that mass merchant being one of the valuable distribution channel of the company, there needs for a proper accommodation to the channel and so the company through allocating appropriate jobber’s functioning in various stores as well as introducing the system of labelling the orders of the mass merchants tried to resolve this issue (Bowersox et al., 2002). So the company purchasing of the label machine helped the company to control their data entry errors and thereby effectively helping the company to become more active in terms of their product identification in their virus stores after being transported from the inventories. Moreover the company DB also facilitates all the three channels with discount policy especially in the invoices. Another practice of the company to put down the cots in the supply chain operations of the company was to distribute the logistics associated costs among the three channels by basing upon the relative percentage of sales volume of the three distribution channels. The packaging cost as implied by the company emancipates the fact that the company keeps the estimated cost same apart from of the size (Jacobs et al., 2010). Moreover an improved and efficiently managed inventory stock is also run by the company to ensure that customer service level can be maintained with the respect to the demands of the customers. This particular 3-day fulfilment cycle as applied by the company serves to very much effective for the company as this serves to be very much cost effective as well as effective retaining of the cost capital of the company Dream Beauty.
Justification
The best way to manage the inventory as well as improve the supply chain networks of the company is to properly incorporate inventory management practices like tracking of the inventory raw materials through presence of the data on the bar code levels as well as introduction of the asset labels (Rushton et al., 2014). This action taken by the company DB will help them to eliminate their errors in the data entry procedures along with the mistakes in the shipping procedures. The labelling procedures bring on more transparency in their supply chain network and also they can meet up the customer demands in an effective way. Customer satisfaction is one of the integral parts of the company’s supply chain network. Each and every single operation in the logistics network of the company is associated with the meeting of the customer demands and needs at its utmost level. The supply chain network represents the scenario when a company is able to meet up the demands of the consumers by checking on the requirements of each product in the market. The network always sustains with the capacity of meeting up the demand of the consumers (Carter et al., 2011).
Summary
Dream Beauty, being one of the leading suppliers of beauty and cosmetics products has always offered its customers with a level of service of highest quality. The company initially facing a problem in their supply chain network capacity for which they hired a supply chain expert to resolve the issue. That came up to be an effective step for the company as the company grasped revenue in terms of its annual sales. But the management understood there had been other factors which need to be addressed. The labelling of the products was another example of company’s innovative step in their supply chain operations. The 3-day fulfilment cycle was another benchmark phenomenon taken by the company to establish their customer base to be very strong (Bowersox et al., 2002).
Reference
Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2002). Supply chain logistics management (Vol. 2). New York, NY: McGraw-Hill.
Carter, C. R., & Liane Easton, P. (2011). Sustainable supply chain management: evolution and future directions. International journal of physical distribution & logistics management, 41(1), 46-62.
Jacobs, F. R., Chase, R. B., & Chase, R. (2010). Operations and supply chain management. McGraw-Hill/Irwin.
Pettit, T. J., Fiksel, J., & Croxton, K. L. (2010). Ensuring supply chain resilience: development of a conceptual framework. Journal of business logistics, 31(1), 1-21.
Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
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