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Supply Chain improvements to impact competitive Advantage

Upon the request of Riordan manufacturing, JK Concepts was asked to determine three key areas of the supply chain that can use improvement. Changes are devised to improve the supply chain and positively impact Riordan’s competitive advantage. The three recommended change includes updated inventory system, stronger relationship with the freight forwarder, and additional suppliers.

With the implementation of an updated inventory system can help with enable Riordan the ability to track production and determine when the order will be complete. In addition, the system can provide current inventory levels. Knowing the current inventory levels is beneficial by providing the ability to know if orders can be filled immediately or knowledge as to timeframe when product will be produced. With increasing the visibility and accuracy of inventory strengthens Riordan’s ability to satisfy the customer’s needs. Furthermore, a better inventory system enables Riordan a chance to enhance their operations at the same time as building a competitive edge with an increase customer satisfaction and building customer relationships.

Current freight forwarders (Fed Ex and China Shipping) are competent service providers. However, building a stronger relationship with one of the freight forwarders can enable Riordan to strengthen the supply chain. Establishing trust between the freight forwarder and Riordan can open better communication, extra attention, and potential better pricing. Forming a strong relationship may require Riordan agreeing to sign a contract with the freight forwarder but build a trusting partnership. Better relationships with freight forwarders can impact the competitive advantage by increasing the efficiency of deliveries and personal focus on shipments.

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