The result of the production process
The result of the production process is the availability of the final products to the customers (Tate, Ellram & Kirchoff, 2010). Tarvos leadership has to come up with a strategy that is elementary in planning for the raw materials, sourcing for them, stocking, production, and the distribution of the finished products. The management team needs to ensure that the raw materials are delivered to the company on time to facilitate timely production that in turn meets the needs of the customers.
Material requirements planning is equally important in every global supply chain. The concept of material requirement planning deals with finding the lowest possible material inventory that can help in reducing the production cost and at the same time lead to the production of commodities that still meet the need of the customers (Tate, Ellram & Kirchoff, 2010). Material requirement planning equally encompasses the inclusion of both dependent and independent demand purchases (Tate, Ellram & Kirchoff, 2010). Tarvos will significantly be involved in material requirement planning to ensure that the raw materials are obtained with the lowest prices to reduce the costs of production.
The leadership in supply chain management is equally required to be aware of the theory of constraints as it is essential in the management of an ideal supply chain. By definition, the theory of constraints makes it clear that there are a few bottlenecks in the supply chain. In the case of a supply chain, a supply potential may be deemed as a constraint. Ideally, the theory identifies one of the common constraints in supply chains to be the bottleneck involving a smooth flow of goods. Tarvos seeks to identify ideal measures that will be elementary in overcoming the constraints and bottlenecks that are often encountered in a supply chain.
Having proper knowledge of the concept of total quality management is equally important in the management of a global supply chain. By definition, total quality management focuses on creating an efficient supply chain. The concept points out the need for monitoring all the activities within a supply chain from the start to the finish (Gold, Seuring & Beske, 2010). Some of the activities that are essential in total quality management include training of the employees who are responsible for the management of the supply chain as well as improving the satisfaction levels of the employees to ensure that they carry out their tasks as appropriate as possible (Gold, Seuring & Beske, 2010). The leadership in Tarvos understands the need for managing quality within the supply chain. As such, the management will focus on elementary strategies that will improve communication and ensure that the employees are actively involved in the production and distribution of the products within the domestic and international markets.
Understanding the concept of supply chain roadmap is equally essential in ending up with an ideal supply chain. The roadmap often points out various activities that are essential in a supply chain. The management team should emphasize on various elements of the supply chain roadmap such as the alignment, the management of risks, value addition as well as the metrics. Tarvos looks forward to identifying the various elements of a supply chain roadmap to ensure that all the activities are properly identified.
Tarvos Inc. Strategic Plan for Supply Chain Management
The initial step in the supply chain management strategic plan is the identification of the goals and objectives that the company seeks to meet. As a small company that aspires to be a big brand not only in New Delhi but across the world, the management team has to set realistic goals that will give the company enough time to grow (Gold, Seuring & Beske, 2010). The company seeks to maintain on-time delivery of products to the consumers. Additionally, Tarvos seeks to ensure that the management of working capital is appropriate. Within the supply chain, the organization seeks to ensure that supplier on-time delivery of raw materials is improved. Tarvos equally seeks to reduce the lead time of the products sold. Additionally, the company is equally concerned with reducing the total logistics cost thus reducing the total cost of production and supply. Every company needs to come up with supply chain goals and objectives. The goals and the objectives act as a roadmap towards a successful supply chain.
As stated, the New Delhi-based organization strives to ensure that it meets the global supply chain needs of the customers and maximize the returns. The company has a total of 26 stores; 14 within India and 12 more stores in various areas across the globe. The company equally aims at increasing the number of the store across the globe to ensure that the needs of the consumers are well met. As the manager of the company, having a strategic global supply chain strategy is essential in maximizing the returns, meeting the needs of the clients as well as reducing the cost associated with the movement of clothes and accessories to the final consumers.
The initial step associated with maintaining the proper management of the supply chain in Tarvos Inc. is forecasting. As a manager, it is essential to ensure that forecasting is done appropriately to determine the needs of the suppliers. Tarvos is a small brand that looks forward to achieving global recognition just as it is in the big brands like Louis Vuitton and Target. Currently, forecasting targets more of the customers in New Delhi as opposed to the global market. The products of the company are better known within India as opposed to any part of the world.
The forecasting of the needs of the clients and opting to produce the clothes and accessories that meet the demand of Tarvos customers depend on the availability of information. As the manager of the company, I have learned that access to information is vital in the global supply chain. Thus, the company depends on information technology to forecast and to manage the global supply chain (Barney, 2012). With the advancements in technology, the internet has made it quite possible for various companies to access accurate information regarding the nature of the market, the production process, and the distribution of the produced goods and services (Barney, 2012). The combination of the web economy, digital networking, and the communication infrastructure make it possible for various companies to access as much information as possible regarding the supply chain. I look forward to following the strategy of gaining access to vital information through the internet as enabled by digital networking and the currently available communication infrastructure.
Tarvos Supply Chain Management through Partnership Strategies
As a growing company, Tarvos Inc. is likely to have challenges associated with supplying products in the international market. The establishment of an effective supply chain within India is easier because the location of the company is within the country (Barney, 2012). Although the management of the company is opting to set up another company in one of the global outlets, there is a significant need to understand that it might encounter further challenges (Barney, 2012). Besides, the presence of competitors such as Target in India creates significant pressure to Tarvos because the local market is endangered.
Tarvos seeks to maximize the opportunities presented in both the local and international markets. As such, the management of the company opts to include elements of a strategic partnership to gain further access to the global market. As part of the strategic partnership, Tarvos has the opportunity of globalizing a sub-set of the supply chain or the entire set of the supply chain (Barney, 2012). The management at Tarvos understands that most of the raw materials are not readily available within India. As part of the global partnership strategies, Tarvos opts to source the raw materials from the global suppliers and do the production and assembly domestically before another manufacturing plant is established in a different location across the globe.
Additionally, just as it is in other global companies, Tarvos opts to formulate a pull strategy that is essential to exploit new global opportunities. A pull strategy is always ideal in a supply chain because the goods are available to the customers just when they require them. The pull strategy extends beyond the exploitation of opportunities within the global community. It seeks to ensure that a new company pushes its way into the global market thus creating a significant influence (Jüttner & Maklan, 2011). Besides, by adopting a push strategy in the supply chain, it is possible for the company to properly implement a global strategy in the business more efficiently. Through global partnerships, Tarvos seeks to ensure that it opens several stores within India and in various locations across the globe. Various companies have significantly succeeded in the production and supply of commodities through global partnerships especially with the suppliers (Chopra, Meindl & Kalra, 2013). A good example of a global company is Nike. Currently, Nike enjoys significant global dominance because of the partnership strategies that it has developed with the suppliers. Tarvos Company will work on a strategy that will guarantee global partnerships to ensure that many outlets are opened across the globe.
Global Sourcing
The sourcing of raw materials is critical to the success of supply management. Ideally, organizations always strive to ensure that they acquire raw materials at reduced costs. The global sourcing for cheap raw materials that eventually minimize the cost of production depends on global partnerships (Chopra, Meindl & Kalra, 2013). The expansion of the global market has enabled the expansion of the global supply chain and made it possible to access suppliers who offer cost-effective raw materials. The suppliers in the global market offer better prices of the raw materials because of the decrease in the cost of labor.
The transportation of the raw materials from the supplier to the factory is equally a significant factor that the company has to consider. Companies that are located in areas that are far from the suppliers spend a lot of money to transport the raw materials to the factory. Tarvos is faced with the challenge of transporting the raw materials from the supplies in countries such as the United States, Spain, and France (Chopra, Meindl & Kalra, 2013). The raw material that the company is interested in is leather because most of the products that it seeks to produce will be made from leather products. With the high cost of transporting the raw materials from the named companies, Tarvos seeks to ensure that a company is set up in one of the named countries to cut on the costs of production. Tarvos will significantly benefit from low-cost raw materials because of the partnership with global suppliers.
Global Manufacturing
The global manufacturing is equally an important aspect in the management of the supply chain for Tarvos. As stated, it is of the essence to set up the global companies in a location that is close to the suppliers and is centrally located for ease of distribution. Currently, Tarvos is located in an area that is not close to the countries that supply raw materials. Currently, the company will have to spend a lot on the transportation of the raw materials from the suppliers (Chopra, Meindl & Kalra, 2013). However, over the years, the company is anticipating a relocation of the production firm to an area that is centrally located and has easy access to the raw materials (Barney, 2012). While opting for the relocation of the firm to another country that is centrally located and with easy access to the raw materials, it is essential to consider the cost of relocation as well as the supplier relationships across the international borders. Additionally, Tarvos is equally aware of the changes in tax structures when the relocations are done. The company is forecasting an increase in the customer base because of supply chain efficiencies once the relocation is complete.
Global Logistics
Logistics, in the 21st century, is quite critical to every aspect of the supply chain. Various companies have been able to meet the needs of their customers because of the efficiencies associated with logistics. Tarvos looks forward to incorporating technology into its logistics. Today, most individuals hare accessed to the internet; thanks to technological advancements in the 21st century (Gold, Seuring & Beske, 2010). Through access to the internet, the company will be able to track the movement of raw materials from the suppliers. The company will as well be able to track the movement of products to the customers who will place their orders online. The movement of the products will be tracked from the 26 stores that are located in various areas within India and other countries across the globe.
Regarding global logistics, the company is aware of the importance of getting the products to the right place and the right time (Schaltegger & Burritt, 2014). Ideally, the management team understands that it is important to deliver the ordered goods to the clients on time to ensure that they are satisfied. Clients often get anxious when their products are not available on time. Tarvos seeks to come up with a strategy that will ensure that the logistic operation is as efficient as possible.
Global Distribution
The distribution of the products to the final consumers demands efficient strategies. The company looks forward to using the online platforms to ensure that the distribution of the products is as expected (Gold, Seuring & Beske, 2010). The use of online platforms in the distribution is quite appropriate because most of the users in the current generation are accessed to the internet (Barney, 2012). The initial process in the distribution of the products online involves the use of a drop shop approach (Barney, 2012). The company seeks to use a drop-ship approach by availing the products on various platforms and making sure that interested customers can make orders. The dropshipping approach should use appropriate language that can be understood by the majority of the customers. Once an order is made, the product is then shipped to the end customer.
The second step to an ideal distribution is through the use of local shipping. The distribution strategy involves the transportation of commodities in a country where the buyers have more interest in the product (Schaltegger & Burritt, 2014). If the company chooses to add local shipping, it is elementary to include local fulfillment parties that can import the products, package them, and make deliveries to the interested parties.
In conclusion, having a plan in the management of a global supply chain is important. The paper describes various theories and concepts that are associated with the management of a global supply chain. For ideal management, the management in any given company is expected to settle for a strategy that reduces costs and maximizes the profits. The paper discusses ideal global supply management strategies with close reference to Tarvos Inc., a company that is located in New Delhi and opts to do business across the globe.