Maclean Supply Chain

1448 Words 6 Pages
(JIT), vendor-managed inventory (VMI) and electronic funds transfer (EFT). Now that businesses were using (JIT) there weren’t ordering as much raw materials only ordering the materials when they needed them which saved on holdings costs and lowered the changes of the materials getting damaged.
EDI also meant that employees had much less paperwork to do as the system the company implemented did a lot of the work, which meant the employees could now focus on more important duties that benefit the business. As there is less paperwork even small businesses can now prosper as they have more time to focus on surviving against their competitor as they have much more time on their hands.
One small business that implemented an EDI effectively was Maclean’s
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Organisations realised that they could outsource at a lower cost if they went international. Organisations started to take of advantage of globalisation which helped them increase competitive advantage, add value and reduce cost through global sourcing.
There was also a disadvantage to globalisation in that decision making became a lot more difficult because there was more parties involved in the supply chain so it was harder to get access to information. Manufacturers outsourcing across the globe were managing second and third tier suppliers and found it more difficult to track, trace and monitor production as it became more complex than just a simple assembly line (Forbes, 2012).
Overall, globalisation has had both good and bad impacts on the global market place. Although it has opened up companies to new global markets with various opportunities, there are now greater risks involved in a company extending its supply chain globally. This is why companies need to consider any system which can help reduce risk as much as possible and help them gain more control of information from suppliers and companies they outsource
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It is predicted that in 2025 there will be a substantial increase in cities and urban areas. Tokyo will increase its population 23.3million from 1970’s to 37million people in 2030. Dehli will increase from 3.5 Million people in 1970’s to 36million in 2030 (World Urbanization Prospects, 2014). This increase in people will mean that shops will down size as rent prices increase. The smaller shops will mean that they will need inventories that have constant demand and other inventory with little demand will not be stocked. A better supply chain will be needed to incorporate this.
Technology trends
Moore’s Law will still reign true as technology will develop at an extraordinary rate. The adoption of new technologies by consumers will grow rapidly with 3D printing and Virtual Reality become cheap enough for consumers to afford. Other new technologies such as cloud computing will enable each part of the supply chain to quickly and dynamically stimulate their processes. This will be a positive change for consumers as retailers will not have to pay for expensive IT infrastructures, opening up doors for more innovation and value chain performance.

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