Valkyrie Case Study

Topics: Supply chain management, Marketing, Production line Pages: 14 (4345 words) Published: May 30, 2011

Valkyrie Lighting is facing a new challenge within its current operations. This challenge comes in the form of expanding and improving its current supply chain management system. In this new implementation, the Valkyrie management team will need to incorporate three vital concepts to achieve success in the highly competitive market of technical lighting.

With this new supply chain management focus, Valkyrie will experience many issues that will need to be addressed to minimize the time it takes to get its expanded supply chain up and flowing smoothly. A number of the issues that Valkyrie experiences can be summarized into three main issues that are currently holding up Valkyrie’s success in this new endeavor.

The main issues that Valkyrie faces include: product accessibility, limited communications, and current barriers to its global expansion strategy.

With this new focus on supply chain management, Valkyrie must decide between implementation of a production line within Sunshine Product’s facility, or establish a legal binding agreement with Sunshine Products to act as their sole supplier.

Currently there is a lack of an integrated computer system that prohibits both Valkyrie and Sunshine to adequately respond to each other’s product demand needs. Due to communication being vital to any business’s success, Valkyrie must look to integrate with Sunshine products to improve communications and information sharing to combat inventory issues and spikes in customer demands.

Due to increasing competition within the technical lighting industry, Valkyrie has the opportunity to expand its operations throughout two potentially lucrative markets. Valkyrie must analyze the Southeast Asian market and the European market; the two primary global opportunities. Both options have advantages and disadvantages; which Valkyrie must analyze to achieve global success.

Our first recommendation is to establish a legal agreement with Sunshine Products to become our sole supplier. The second recommendation is to establish an integrated computer system between Valkyrie and Sunshine. Our final recommendation is to focus on entry into the European market through a third party contractor.

These recommendations will allow Valkyrie to maximize its supply chain, effectively communicate between all supply members and expand its market share; while maintaining its core competency of producing aesthetically designed lighting products.

Company Overview

Valkyrie Lighting is a manufacturing company with operations mainly in North America. The company’s primary focus is the production and delivery of technologically advanced industrial lighting. Valkyrie Lighting operates in a supply chain with many tiers working together to create a product that serve a number of customers. The majority of their parts come from tier-one suppliers, such as Sunshine Products, that are sent to a manufacturing plant in Denver. In this plant, the products are assembled, stored, and delivered to customers who place orders. The tier-one suppliers contract the manufacturing of parts from tier-two suppliers that are located throughout the world; such as Sunshine Products who contracts in Taiwan.

Valkyrie Lighting gained market share in the technical lighting industry due to integrating advanced technology which was superior to the competition. This technology led to the creation of superior products and the ability to create custom products that serve different customer needs. Valkyrie Lighting also held a competitive edge with the product design and looks that were more desired than that of the competition. This is currently Valkyrie Lighting’s main competitive edge in the industry.

Valkyrie Lighting’s operations are based on a push system that follows forecasts which are revised every quarter. This push system has led the company to produce in batch processes. The constant demand from customers for...
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