Case Study: Supply Chain Management
Name: Ravindra Saini
Section: E
1. Do you think it was ethical on JOSH's part to eliminate the entire distribution structure without passing on the benefits to Seth Dhaniram? In my opinion it was not ethical on JOSH's part to eliminate the distributors from the chain without passing the benefits to Seth Dhaniram. The main diplomatic reason which could have been explained by JOSH to make the decision of removing the distributors may be: * Increasing the efficiency of the supply chain in terms of the time that is taken by the product to reach the customers by removing one intermediate. * From customer's point of view a faster service could be achieved on a lower cost by removing the margin that the distributors enjoyed.
Aforesaid reasons seem to be correct keeping the customers in perspective. But supply chain consists of various components including suppliers, manufacturers ,logistics ,distributors ,retailers etc. and each one of them play an important role. For example, taking up the role of distributors, they not only helped in distribution of the product but also helped RDS to help them deciding the carrier to a particular destination district. Thus, each other's roles are facilitated in a way or other by each other. Also maintaining relationships and reputation is very important for business. Removing the whole distribution structure would piss off the distributors as this is the way of income for their livelihood and there would be new challenges that RDS would face. New challenges always require new structure and new workforce to deliver the same quality. RDS would have added responsibilities and complexities for which they would require additional labor and staff for the same quality of services and that would incur additional cost. Even if JOSH is committed to better and cheaper services to their customers they need to understand the requirements of RDS and share benefits with them to achieve the goal of efficient and better services in
Section: E
1. Do you think it was ethical on JOSH's part to eliminate the entire distribution structure without passing on the benefits to Seth Dhaniram? In my opinion it was not ethical on JOSH's part to eliminate the distributors from the chain without passing the benefits to Seth Dhaniram. The main diplomatic reason which could have been explained by JOSH to make the decision of removing the distributors may be: * Increasing the efficiency of the supply chain in terms of the time that is taken by the product to reach the customers by removing one intermediate. * From customer's point of view a faster service could be achieved on a lower cost by removing the margin that the distributors enjoyed.
Aforesaid reasons seem to be correct keeping the customers in perspective. But supply chain consists of various components including suppliers, manufacturers ,logistics ,distributors ,retailers etc. and each one of them play an important role. For example, taking up the role of distributors, they not only helped in distribution of the product but also helped RDS to help them deciding the carrier to a particular destination district. Thus, each other's roles are facilitated in a way or other by each other. Also maintaining relationships and reputation is very important for business. Removing the whole distribution structure would piss off the distributors as this is the way of income for their livelihood and there would be new challenges that RDS would face. New challenges always require new structure and new workforce to deliver the same quality. RDS would have added responsibilities and complexities for which they would require additional labor and staff for the same quality of services and that would incur additional cost. Even if JOSH is committed to better and cheaper services to their customers they need to understand the requirements of RDS and share benefits with them to achieve the goal of efficient and better services in