Cases Summerset

Topics: Supply chain management, Management, Business process Pages: 13 (4574 words) Published: April 4, 2013
Somerset Furniture Supply Chain Strategy
Executive Summary
The main focus of this study lies on the business performance of Somerset Furniture. Consequently, this paper aims to assess the supply chain and logistic practices of Somerset Furniture.  With regards to purposes, this paper also aims in exploring the Somerset Furniture’s supply chain strategy, specifically its manufacturing plant establishment in the foreign country—China, has influenced its success.  In this paper, the researcher assesses the current business strategy of Somerset Furniture in order to identify its effectiveness and determine how this strategy helps the business in attaining business success. Basically, there are numerous methods and styles that business may use in order to attain success, normally, this methods and strategies were used in determining the target market, encouraging the prospects buy their products with value and generate profit. In fact, this study recognizes the importance and outcome of leadership, innovation and motivation to the progress and advancement of Somerset Furniture.   Introduction

Organizations use the supply chain approaches to have control over the operations and reduce the costs, as much as possible. Supply chain strategy is often intertwined with the supply chain management but supply chain strategy is broader than the other which should be managed well in order to compete in the market. The implemented strategy is a kind of process that evaluates the cost and benefit that an organization can gain through its operation. Most of the business strategies are formulated with an aim to effective compete and at the same time, achieve the organizational goals. This idea is true with the implementation of supply chain strategy because it includes the analytic and decision making processes. Identify the Issues

Actually, there are no specific steps regarding the development of a comprehensive supply chain strategy that can be effective in an organization. Every enterprise is uniquely founded and their environments are differs among the others. This is a challenge that the organization should identify. Before the development, the organization should first assess the existing supply chain management or the factors that might affect the creation of the effective supply chain strategy (Rosenfeld, et al., 2000). Commonly, the organization goes back into the basics of business. Through the identification of the essential offers (products or services), when to offer (timing, seasonal), and where to offer (market, retail) the organization can draw its own competitive plan of supply chain. Having a business strategy is a representation of the overview of the business’s future, and having a supply chain strategy can be mirrored through the actual operations. In the end, the supply chain can meet the objectives of the organization. The supply chain strategy is important towards the operations and execution of the activities. In the continuous practice, the efficiencies are maximized and remain competitive in the market. Having a supply chain strategy creates a strong relationship between the suppliers and customers. And an organization should remember that a well executed supply chain strategy creates a value for the organization’s advantage. Basically, businesses like Somerset Furniture are considering now the advantage of transferring the manufacturing process to China in order to lessen their overhead costs. Actually, setting up manufacturing plants in other countries like China may reduce costs, principally due to the use of economical foreign labor in developing nations. Somerset Furniture can handle costs by transferring their production lines in global setting or in a foreign land that they wish to operate. However, Somerset Furniture practices grasps that they produce employment, generate affluence, and perk up expertise in nations that are in dreadful need of such growth. Censors, on the other hand, point to their...
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