A Critical Analysis Of Shape NZ’s Supply Chain Management

Supply Chain Issues Faced by Shape NZ Company

The aim of the report is to critically analyze the supply chain management of the Shape NZ Limited. This report is the continuation of the assessment 1 which discusses about the major issues faced by the company. The report reflects the critical analysis of supply chain tools and techniques in order to propose the operation, strategic and the tactical decisions of the Shape NZ Company. Along with this, it includes the explanation of the company supply chain with the help of Porter’s value chain. This method has been used because this helps in analyzing the activities that are performed within the organization. The report includes the analyses and evaluation related to the stakeholders of the Shape NZ in regards to the basic model of the porter’s value chain. This porter’s value chain contributes to analyze the role of every stakeholder available within the organization informing the value for the Shape New Zealand organization. These aspects are discussed along with the porter’s value chain diagram and the matrix table which reflects the influence and interest of stakeholders within the company.

In the previous assignment, there was the discussion related to the supply chain issues that are mainly faced by the Shape New Zealand Company. Along with the appropriate suggestion are also discussed that can reduce or eliminate the issues that are mainly faced by the company in the New Zealand market. Though, the suggestions can lead to the positive impact of improving the value of customers. This section includes the impact of suggestions for the supply chain that contributes to improve the values of the customers of the company.

It was suggested to the Shape New Zealand to better manage to make use of the data management and integration. The collection of the facts and data will help the company to understand the prices of the products, labor cost, rental contracts, taxation cost of the products and services. This data will support the company as they will be able to offer the products at affordable prices. This will lead to the customer satisfaction and loyalty. This shows the use of the coloration tool in which communication can be done. The collaboration with the suppliers and customers leads to feedback easily which will help the company to bring the improvement in their products (Ptak & Schragenheim, 2016). This is the way through which they can offer the high quality and customized products considering the feedback.

Improvement in Supply Chain Management

The social media platforms are good at sharing the details about the product that is manufactured by the enterprise. This is the effective way through which the company can get the reviews, views and the feedback from the employees for the product. The use of social media will support the Shape New Zealand to bring the improvement in the supply chain which will help the company to enhance value. The reviews for the product will bring the change in suppliers and ensure that the company is able to provide the quality products at affordable prices. Moreover, the positive feedback for the product brings the good reputation for the company and makes the other customers to use the products.

Effective customer relationship is one of the ways through which the company can achieve the success and can easily expand the business in the other markets. The effective relationship with the customers is possible when the company is able to provide the demanded goods and services on time. The company is willing to increase the number of suppliers because through this they can bring diversification in products that they are offering to customers. Moreover, this is essential for the manufacturing companies to diversify the suppliers and the products that they are offering to the customers because different people have diverse needs for the product. This shows that the company makes use of demand forecasting tool through which they can evaluate and meet the needs (Monczka et al 2015).

All these points reflect that the company can bring the improvement in the supply chain. Along with this, the improvement in the supply chain management can bring the improvement in the value that the company offers to its customers.

The porter’s value chain framework is the model that supports the company to evaluate the specific activities through which the company can form the value and the competitive advantage. There are two types of activities that are included in the value chain model of the porter’s. These activities are primary activities and the support activities. The primary activities include inbound logistics, Marketing, and sales, outbound logistics, operations and service (Kotler, 2015). Along with this, the support activities include infrastructure, human resource management, technology development and the procurement. The analysis of these activities reflects the role of the supply chain management for the Shape New Zealand.

The primary activities of the value chain are related directly with the physical creation, sale, and maintenance (Chernev, 2018). The below given is the analysis of the primary activities of the Shape NZ company.

Porter’s Value Chain Analysis

The inbound logistics include the processes that are associated with the receiving, storing, and distributing the products. The company is specialized in light engineering, sheet metal fabrication. Shape NZ performs the activity of designing and manufacturing fabricates which is primary inbound logistics activity. The supply chain of the company initiates with the sourcing of the products from the suppliers as it is required for the production. These raw materials are stored by the shape NZ Company in the warehouse. Later, on the company continue with the activity of the producing the products and finally distributing it to the final customers.

This is the important activity of the porter’s value chain in which the transformation activities takes place. In simple, this is the major activity which changes the inputs into the outputs of the product (Mind Tools, 2018). Shape NZ design the products that they are willing to prepare for their customers. Though, the company provides the services to the leading infrastructure and engineering companies in the New Zealand market. The production of the products is possible when there is effective sourcing of the raw material from different suppliers.

This is the external process in which the products and services are delivered to the end-users who make use of the product. The storing and distribution of the finished goods is considered as the outbound activities (Mullins, et al 2010). The Shape NZ is the business that offers the services to major companies due to which the company forms the deals with the numerous suppliers who can help them in distributing the products within the market. The outbound logistics of the company include all the activities that are included in the supply chain.

The marketing and sales of the product are one of the essential elements that are performed by the company as this is the way through which they can generate the high awareness in the market for the products and services (Mind Tools, 2018). Shape NZ performs the marketing activities with the help of the advertisement in online media. The advertisement through online stores is one of the effective ways through which the company can target the maximum people because most of the people are making use online portals for fetching details. In the local market, the company has one team who perform the personal selling in which they carry one template and visit the nearby shop and businessmen who can make use of the company’s product and services.

Primary Activities of Value Chain

This activity reflects that the company can maintain the value of the products and services that are maintained in the eyes of the customer (Sokhatska & Lahotska, 2013). The company ensures that there are providing the quality in their products and at the affordable price. Along with this, the company wants that they make their products easily available to the customers that are present in the New Zealand local market. Shape NZ offers the after sales service which helps the company in generating the high-level reputation in the market. All these aspects are possible when the company is able to

The support activities are the activities that provide the support to the primary function and activities that are conducted by the company (Baker, 2014). The below given are the support activities of the Shape NZ company.

The purchasing of raw material is done by the Shape NZ as it is considered as one of the major activity of the supply chain management. The suppliers deliver the raw material which includes metal that is used for the sheet, welding wire, hardware and many others to the company.

Shape NZ manages the talented employees within the organization as they currently employ over more than 50 staff. These employees work with their full efficiency to support the primary activities of the business. The company evaluate the skills of the employees and accordingly hire the employees because this is the way through which they can manage effective people within the organization (Wilson & Gilligan, 2012).

The technology development or advance is increasing in the surrounding which supports the activities of the business. The company offers expert service to a range of industries which include the use of technology. Technology has made the work easy for the Shape NZ.

The infrastructure supports the primary activities as it includes different aspects such as accounting, legal, administrative and the general management. These are the major infrastructure that the business makes use for the support (Chernev, 2018). The supply chain that is conducted by the company involves the support of the legal compliance.

The above analysis reflects the margin in which it is clear that all the Shape NZ implies that the organization realizes the profit margin that depends on the ability of the managers to associate all the activities of the company with the value chain. The company is operating the business effectively and due to which it is offering the services to the Government infrastructure, construction, transport, light rail, electronics, telecommunication UF and many others. Shape NZ company is able to manage the different capabilities which will help them in making high revenue. The management of the capabilities is possible with the help of effective alignment of all primary activity and support activities of the business.

Support Activities of Value Chain

The stakeholders of the company play a vital role in the management of the operations of the company. The major stakeholders of the company include the internal and external stakeholders. In this, the internal stakeholders of shape NZ group include the stakeholders who are operating their operations within the company only. These internal stakeholders include owners of the company, managers, investors and many others. On the other hand, the external stakeholders include the suppliers and customers who mainly deal with Shape NZ. These suppliers and customers help the company in accomplishing the objective.

The image reflect the analysis of the shareholder can be done by meeting the following given aspects which include the key players, meet the needs, show consideration and the least important element. These shareholders play a vital role in meeting the objective of the company and this is the reason that the contribution of the shareholders is high in decision making of the company. Though, this is fact that shareholders of the company might influence negatively while making the decisions.

On Y-Axis = Influence/power of stakeholders

On X- Axis = Interest of Stakeholders

The stakeholders of the company play a vital role within the organization and these stakeholders create an impact on the value that is created by them at the time of the procurement, manufacturing, and distribution of products. The company ensures that they create the value of the customers through their services. These services become effective at the time of the Procurement, Manufacturing, and Distribution. These phrases of the business help in creating the value for the customers. The role and impact of stakeholders are discussed below: –

The procurement is one of the most important activities of Supply chain management. The stakeholders of the company which includes purchasing manager or owner perform the responsibility of procuring raw materials (Handfield, 2017). Stakeholder performs a selection of the suppliers, total cost of ownership, material quality and the management of the inventory. This is the way through which they can provide services at affordable prices with quality. Though, the stakeholders of the company also impact the value that is created while procurement. The poor delivery of the raw material by suppliers affects the accessibility which will make the customer disappoint. On the other hand, the purchase in bulk will help to decrease the cost (O’Byrne, 2016). The procurement needs different suppliers but conflicts with supplier’s leads to the effect on the sourcing of material.

Conclusion

Shape NZ is engaged in the production and assembling of products, equipment, and the services. The company has a unique capability which helps the company to deliver the effective services to the big companies. The stakeholders of the company (Owner) form different strategies for the production considering the need of the customers. Along with this, in this phrase, the manufacturing is done considering the needs of the customers. The customers share their feedback on the basis of which the manufacturing is done (Christopher, 2016). This will satisfy the needs of the customers and leads to loyalty. Therefore, this shows show customer (Stakeholder) affects the value. Though stakeholders might also affect the manufacturing negatively as they make planning before producing the products but the failure of planning will affect the manufacturing.

The distribution of the product is considered as the external activity that is mainly performed by the operation manager of the company. In which the products are distributed either directly to the customers or to the suppliers to make it available to the end-users (Hugos, 2018). In the supply chain management, the stakeholders of the company contribute to manage the distribution channel. Shape NZ operation manager ensures that the distribution of the goods is done without any huddle. The role of the stakeholder in the distribution is to ensure that they are able to manage the effective logistics system. The stakeholders are responsible for the timely delivery of the products to the end-users. Moreover, they ensure that the correct goods and services are delivered from the warehouse to the customers. Though, due to the issues between the employees and lack of communication between the manager and team can lead to the issues which affect the customer value that is created by the company (Mangan, Lalwani and Lalwani, 2016). This leads to the negative imprint of the company in the market.

The stakeholders are main categories of internal and external stakeholders of the company. The internal stakeholders of the Shape NZ include employees and the management of the company. On the other hand, the external stakeholders of the company are the customers, suppliers, competitors and many others (Beringer, Jonas & Kock, 2013).

The internal stakeholders of the company take participation in the coordination, funding, resourcing, and publication of the strategy from local health and well-being partnership. The internal stakeholders major form the strategies and the policy of the company that can help them for the growth and expansion of the business (Epstein & Buhovac, 2014). Therefore, the internal stakeholders play a vital role within the organization. The impact of the internal stakeholders is discussed below: –

• Legal hierarchy
• Authority of leadership
• Control of Strategic direction
• Negotiation position
• Possession of specialist knowledge

Rating 

The external stakeholders also play a vital role for the Shape NZ organisation. The customers, suppliers and the competitors of the company share their valuable feedback with the company. Moreover, these stakeholders help in understanding the needs of the customers that is essential for the company (Schnackenberg & Tomlinson, 2016). In addition, the external stakeholders contribute in the policy formed by the company. These stakeholders also affect the working of the company which are given below: –

• Control of the strategic resources
• Involve in the strategic implementation
• Possession of knowledge and skills

Matrix table

The below given is the value exchange of that takes place between the key stakeholders and the organization during the time of the procurement, manufacturing and the distribution in the supply chain management. These all activities help the company to create the value for the customers which is exchanged. This image is prepared considering the three phrases because the value is created through these processes only.

Shape NZ company is offering the services of different industries as the company is in operation from past 30 years due to which they have learnt a lot. The suppliers of the company are limited due to which they are not able perform the operations effectively. The company need 5-10 new suppliers from whom the company can source the raw material. This will make the improvement in range of products which will enhance the value for the customers.

The manufacturing process is one of the effective processes that can bring the vast changes in the company value that they offer to their customers. The shape NZ Company requires implementing the Just-in-time approach within the organisation. JIT inventory management system is one of the management strategies that are used by the company to support raw material orders from the suppliers to directly to production schedules (Monden, 2011). This helps the company to reduce the flow times at the time of production of goods and services which is essential for the Shape NZ Company.

The product or service distribution is the last step which is considered as one of the important step for the company. Shape NZ company ensures that they are offering the services to the maximum small and large companies who are willing to avail effective services. The distribution of product is required to be effective because this is the way through which they can make strong selling of products in the market.

Supply chain sustainability has been building up from the recent years as the consumers are becoming more conscious for the environmental concerns. Shape NZ is willing to invest in the suitable technologies and innovation as this is the only way through which they can reduce their environmental impact. This innovation becomes the competitive advantage of the company. The supply chain is effective when it gets to collaborate with others. Though, this needs a huge amount of capital which is difficult for the company to invest at a time. The companies perform the working with the retail partners and the logistics suppliers as this is essential to accomplish the real progress. Shape NZ always thinks from the future perspective which becomes the strength of the company and they get numerous benefits in the future (Waters, 2013). In addition, the company form more suitable commitments which help them in establishing the good position in the market. Along with this, this is the only way through which they can connect with different suppliers easily and will be able to form the strong relationship with suppliers.

The company should follow the sustainable supply chain management to achieve the competitive advantage. There are three major stages that are included for bringing the sustainable supply chain management within the organisation. These stages are explained with the help of below given image: –

Conclusion 

In the end, it can be concluded that Shape NZ Company supply chain management is required to be effective which is essential for offering the effective services to their customers within the market. This assessment is linked with the previous assessment in which issues related to the supply chain management of Shape NZ were explained along with the suggestions. The potential impact of the suggestions on the value that is offered to the customers is discussed. Porter’s value chain model helps in analyzing the supply chain management of the Shape NZ. Along with this, the evaluation related to the stakeholders of the company is discussed with the help of the porter’s value chain. The stakeholders of the Shape NZ Company play a vital role and they also impact the value that has been generated at the phase of the procurement, manufacturing, and distribution. Shape NZ is also gets affected by the internal and external stakeholders along with this the company put effort into Sustainable supply chain management which is essential for the competitive advantage.

References 

Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.

Beringer, C., Jonas, D., & Kock, A. (2013). The behavior of internal stakeholders in project portfolio management and its impact on success. International Journal of Project Management, 31(6), 830-846.

Chernev, A. (2018). Strategic marketing management. Chicago: Cerebellum Press.

Christopher, M. (2016). Logistics & supply chain management. UK: Pearson.

Coresight Research. (2018). DEEP DIVE: Supply Chain Sustainability: A Strategic Priority for Apparel Retailers and Brands. Retrieved from: https://www.fungglobalretailtech.com/research/deep-dive-supply-chain-sustainability-strategic-priority-apparel-retailers-brands/

Dogulin Digital. (2018). How to use Social Media Networking Sites for Businesses. Retrieved from: https://www.dogulindigital.com.au/social-media-networking-for-businesses/

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Handfield, R. (2017). Assessing the True Return of Procurement Transformation on Total Shareholder Return: A Tough Proposition. Retrieved from: https://scm.ncsu.edu/scm-articles/article/assessing-the-true-return-of-procurement-transformation-on-total-shareholder-return-a-tough-proposition

Hugos, M. H. (2018). Essentials of supply chain management. New Jersey: John Wiley & Sons.

Kotler, P. (2015). Framework for marketing management. India: Pearson Education.

Mangan, J., Lalwani, C., and Lalwani, C. L. (2016). Global logistics and supply chain management. New Jersey: John Wiley & Sons.

Mind Tools. (2018). Porter’s Value Chain. Retrieved from: https://www.mindtools.com/pages/article/newSTR_66.htm

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. US: CRC Press.

Mullins, J. W., Walker, O. C., Boyd, H. W., & Larréché, J. C. (2010). Marketing management: A strategic decision-making approach. Boston: McGraw-Hill.

O’Byrne, R. (2016) 3 Things Supply Chain Stakeholders Value Most in Suppliers. Retrieved from: https://www.supplychainsecrets.com/3-things-supply-chain-stakeholders-value-most-in-suppliers/

Ptak, C. A., & Schragenheim, E. (2016). ERP: tools, techniques, and applications for integrating the supply chain. CRC Press.

Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784-1810.

Shape NZ Limited. (2018). About. Retrieved from: https://shapenz.com/pages/about

Shape NZ Limited. (2018). Contact. Retrieved from: https://shapenz.com/pages/contact

Sokhatska, O., & Lahotska, N. (2013). Strategic marketing management. Journal of european economy, (12,? 1), 117-120.

Waters, H. (2013). Supply chains of the future: sustainable logistics and profitability go together. Retrieved from: https://www.theguardian.com/sustainable-business/supply-chain-future-sustainable-logistics-profit

Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. New York: Routledge.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order