Supply Chain Management and Strategy
Matriculation Number- 200109229
Module Code- MHN220298
Word Count- 2663
Table of Contents
Norwaycycle are a Norwegian bicycle manufacturer supplying bicycles to professional cyclists and those with a passion for cycling. While they sell their bicycles onto distributors they also have 8 shops of their own in major cities throughout Norway. They customize bicycles, run bicycle clubs from their shops, offer servicing, provide information on cycle routes and offer general advice regarding bicycles. This service gives Norwaycycles a customer base and promotes word of mouth. However, the company are lacking an online presence and senior management are aware that their competitors are making significant use of the internet. Norwaycycles recognise the importance of expanding the online aspect of their business in order to develop their relationship with suppliers, expand their market, grow the retail operations of their business, increase sales and develop their online community. This report will look at-
1. The concept of supply chains and supply chain management in relation to Norwaycycle 2. Norwaycycles order fulfilment process
3. The potential use of the internet and supported technologies for improving the performance of the processes, information sharing and relationships across Norwaycycles supply chain. 2.0 Supply Chains and Supply Chain Management in relation to Norwaycycle According to Chopra S and Meindl P (2012) the supply chain includes all parties involved, directly and indirectly in completing a customer’s request. This not only includes suppliers who provide the raw materials and manufacturers, but also distributors, warehouses, retailers and even the customers themselves. Hugos (2011) backs up this argument by noting that supply chains encompass the organisations and business activities required to design, produce, transport and use a product or service. Norwaycycles supply chain network consists of several different aspects. On the supply side there is 1st and 2nd tier suppliers and the demand side consists of 1st and 2nd tier customers. 2nd tier means suppliers and customers who are separated from the organisation by the 1st tier supplier/customer. A basic model of Norwaycycles supply chain can be seen on the next page.
2nd tier 1st tier 1st tier 2nd tier
Flow of products, information and funds
In order for Norwaycycle to manage their supply chain effectively, Sanders (2012) notes that they must coordinate, share information and collaborate with all people and organisations involved within the whole supply chain process. Christopher (2005; p17) defines the whole supply chain process as a ‘network of organisations that are involved through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer’. This means that to produce value in the eyes of the consumer, Norwaycycle must aim to maximise value adding activity and minimise non-value adding activity (minimise waste). Taking the whole supply network into consideration will help Norwaycycle to understand competitiveness, identify significant links and collaborate with others on long term issues. It is very important that Norwaycycle takes into account all aspects of their supply chain as according to Ayers (2010) most organisations define Supply Chain Management (SCM) too narrowly; this means that most organisations do not consider the full length and breadth of their own supply chain. However, Stadtle...