Everyday source
Activate 2011store
The three identified suppliers have the capability to supply the required supplies with differences in the lag time given that their locations are different and it might take long for two to ship their products to the store. supplier selection was based on an elaborate process that involves setting up the selection criteria, initial contact, formal evaluation, price quotation, financial data, reference checklist, visiting the supplier, audit assessment, and initiation test. The supplier will maintain strong ties and share strategic information to optimize the relationship. The use of electronic data integration where computers for the supplier and reseller are connected enables automatic alerts to the supplier. Interconnections allow the information sharing and the supplier will be aware of the critical point where replenishment is needed.
Once a decision on the best supplier has been made, the next step is to sign a contract that indicates the roles that each party is to play. The contract will include the agreed upon price, the quantity to be delivered, the destination for the products and the time and frequency of delivery. The contract will make clear the legal standing where the specific details are clearly stated and any ambiguity will be addressed at this point to avoid any issues in future. The contract should permit collaboration in the parties to ensure continued collaboration and support. It will also ensure that the parties keep their end of the bargain
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The supplier should prepare the first draft service level agreement for agreement or further discussions. As the supplier understands better the services that are being provided, and the best way for performing them, they are best placed to draft the agreement. The contents of the agreement must be fair to both parties. The supplier will also be responsible for informing the end user the contents of the agreement by creating a pamphlet and delivering it to the appropriate person. The supplier must make a decision concerning the production of the shower cafe, inventory management, location, transportation, and information.
A strategic partnership with the supplier helps an entity to meet corporate social responsibility which is needed for business survival. It enables organizations to adhere to different social and environmental responsibilities that must be followed by CSR organizations. Some of the practices include ethical and honest business operations focusing on environmental preservation which include the efficient use of natural resources. The supplier and reseller will collaborate on efficient routing systems and transportation. Such initiatives can reduce air pollution and other negative impacts of the preferred mode of transport.
The potential channel partners include Walmart, Carrefour and K Mart. The three provide a huge market potential for the shower caps. They break the bulk whereby they obtain goods in large quantities and resell them to the customer in smaller quantities. Walmart, for instance, buys goods in bulk and at a cheaper price to resell to them at a lower price than the rest of the competitors. The three resellers provide a market for the products and transport the consignments to their respective outlets creating room for the company to continue producing the products in anticipation of the meeting the needs of the customers. The retailers, therefore, have an important role in creating a market by transporting the products to their outlets. Similarly, they assume the risk for the product in their possession. The retail outlets market the products on behalf of the manufacturer using different promotional techniques including advertising, sales promotion, publicity, public relations, reward programs and online marketing. Similarly, it is the responsibility of the outlets to display the products in a visible and attractive way where they have to provide shelf space for the products and ensures that there is an attendant who assists customers when they are in need of additional information. The retailers train the salespeople who will be responsible for selling the products in the market. The retailers will also have to place the products in their online store for online shoppers. The companies will then have to deliver the products to the ultimate consumer once a buyer obtains the product from the company's website. The retailers will have to collect cash from the customers on behalf of the company and relay the same upon deducting their profits and other expenditures that they have incurred. One of the most important roles that retailers do is to relay the feedback from the customers to the company. Clients might be dissatisfied with some of the features of the product. Similarly, the shower caps might not be functioning as expected or they can have many malfunctions which need to be addressed amicably. Relaying such feedback helps the company to adjust or alter some of the features that are disliked by the customers. Customers are the users of the final users and they express whether the caps meet their expectations or not. When the company receives such feedback, it will be acted upon to adjust according to the needs of the clients. Clients can also be useful in giving market intelligence for competing products and the competitive advantages that each manufacturer or distributors.
Manufacturer
Midland Enterprises
Activa Co. LTD
Shenzhen Co. Ltd
2 nd Tier Supplier
2 nd Tier Supplier
2 nd Tier Supplier
Diagram tracing the offerings back to the raw materials with the dashed arrows indicating information flow
The suppliers and channel partners play a critical part in ensuring that the product moves smoothly along the supply chain from raw materials to manufacture then to the market as finished goods. The different players in the channel play a critical role in availing the raw materials or finished products at the right time and in the correct quantity. Players in the upstream engage in the procurement of raw materials, consolidation, sorting, and transport to the company. They help the company to gain the resources to be used in the manufacture of the shower cap the manufacturing transforms raw materials into finished goods by adding value. Downstream activities involve all actions aimed at taking the product to the ultimate consumer.
References
Burf, D. (2009). World class supply management . [Place of publication not identified]: Mcgraw-Hill Education.
