OPM500 CASE Mod 2 Implementation of a Supply Chain System

Supply Chain Management
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Implementation of a Supply Chain System
Introduction
An efficient supply chain management system is significant in providing solutions for the management of the flow of goods from the manufacturers to the point of consumption. It also keeps track of all information regarding all parties involved during the movement of goods and services from point of origin to the final consumer. As a result of the stiff competition in the manufacturing industry, companies are devising new ways to improve service delivery and to be ahead in the game against their fellow competitors. Customer satisfaction is the primary goal of many companies because it increases sales and strengthens customer loyalty. This paper will analyze the implementation of a supply chain management system by Adidas Company and how to measure the performance of the supply chain. The paper will also give an analysis of functions of supply chain and recommendations for improvement.
Adidas is a global company that specializes in the production of clothes, soccer balls, and shoes. In 2014 world cup the Adidas Company played a key role in the supply of soccer balls (Horn, 2014). The planning process from the manufactures was critically thought and implemented. The company ensured that the materials that were needed in the world cup were available. The Adidas Company ensured that the soccer balls which are made in Pakistan in the Sialkot district reached the point of consumption on time. The first thing the company did is sourcing the raw materials that are required to manufacture soccer balls. Sourcing is very critical because it gives a company an opportunity to select their supplies for continuous production (Banker, 2015). Production of soccer balls requires raw materials such as rubber, polyester, latex, and cotton. Sourcing of raw materials ensures sustainability in the production process.
According to the Adidas official list of suppliers that was used during the 2014 world cup indicated that all suppliers of raw materials were from within Asia. The suppliers from Asia ensured the transportation cost of raw materials was kept at a minimum. Transportation costs may lead to the increased cost of a commodity. The Adidas Company, therefore, depicts an excellent method of reducing the transportation cost of raw materials. It does this by locating their manufacturing industries within their raw materials suppliers.
The idea of branding a product is essential in supply chains systems. The brand of the product determines the market share it will gain (Banker, 2015). The Adidas Company branded the soccer balls that they were producing a name that was associated with the Brazilian culture- Brazuca ball (Horn, 2014). This brand name was fit for the season since Brazil was hosting the world cup and something associated with their culture would have increased demand in the market.
After sourcing the raw materials the process of manufacturing starts. The supply chain method system for Adidas ensures that during the manufacturing of the balls all the processes are followed. For instance, materials that enhance the structure of the ball and the ability to bounce are used in the manufacturing process. Adidas has also incorporated the modern method of manufacturing soccer balls. For example, the 2014 world cup soccer ball had very innovative and dynamic features such as the surface texture that was designed in a manner that enhanced aerodynamic performance. The last stage that the soccer ball for the 2014 world cup underwent was the testing stage to ensure all the specifications were met. The ball must pass all laboratory tests in line with the FIFA recommendations before it is approved. The Adidas claimed that the Brazuca ball was the most tested ball ever before it was considered worthy in the market.
The reason why the Adidas Company was successful in the 2014 world cup is the readiness of the supply chain system to cater to huge demand. The company had prepared in advance and also established plans and forecasts to cater to the demand of their products both in their stores and online. The end-to-end supply chain was evident during this particular period which ensured they catered for the increased demand for their products.
For firms to increase supply chain performance they must first focus on their distribution network. The distribution network determines how products will be delivered to their final destination. Also it determines the sales strategy for a particular product. The distribution network is, therefore, the primary goal in improving supply chain systems. A holistic approach can be us...