Academic MBA Question:
Case: Having a current, flexible sourcing
strategy can not only reduce costs and increase efficiency but also serve as a
competitive advantage to help organizations increase the top line. Supply chain
costs, primarily procurement and transportation, can range from 50 to 70
percent of sales, depending on the industry. So it is critical to spend
considerable time developing your organization’s strategy. Periodically
reviewing your sourcing strategy ensures you will achieve desired results and
continue to align with business objectives. Successful sourcing requires a
thorough understanding of a company’s business strategy, the resources required
to deliver that strategy, and the market forces and unique risks within the
company associated with implementing specific approaches.
A large e-retailing organization has
appointed you as a consultant to help them design their distribution network
for electronic appliances. Customers tend to place a single order for the
products with different brands in the order.
a. Which network design is most
suitable in this case? Justify your answer.
b. What are the benefits and drawbacks
of the network design you have selected?
Academic Assignment Answer: