Importance of Supply Chain Efficiency
Any company organization’s ability to grow and establish itself relies heavily on the good framework of supplies. As a result, the supply chain efficiency is the dividing line among effective and ineffective businesses. The supply chain can be classified as a network, and it can be built up in any circumstances where the service providers and the business work together well. Typically, these types of problems arise as a result of providing or manufacturing a certain product with the single biggest purpose of providing it to the final customer. Any structure or relationship between diverse items, operations, entities, assets, and relevant data is referred to as a supply chain of this type.
This research paper is being written with the goal of analysing the importance of the distribution chain that operates within R.M. Williams, one of Australia’s most well-known “shoe” production companies (Tien et al. 2019). As a result, the purpose of this research paper is to determine the supply chain procedure that is used within the company to market and distribute manufactured products to the consumers.
Improved supply chain integration has the ability to enhance profit power and influence in the marketplace. A well-designed supply chain enables businesses to seamlessly monitor the flow of items and commodities, as well as the capable of transforming any raw materials into finished goods. Manufacturing, operators, shipping, retail outlets, and distribution are all part of the supply chain’s framework.
Figure: Business Operational Model
(Source: https://geotechinfo.com.au/strategic-planning-with-rm-williams/)
- M. Williams’ functional process encompasses the stages of production, development, purchasing and procurement, and finally transportation and delivery to the ultimate prospective customers. The organization’s current operations attempt to improve productivity all through the cumulative supply chain while also ensuring higher expectations by ensuring affordability, reliability, faster shipping, and quality assurance.
- The business operating strategy used by R.M. Williams focuses on innovation, so that newly developed and improved commodities may be generated to accommodate the dynamic shift of tastes and preferences of the customers inside the marketplace and maintain a competitive edge with all of its competitors(Baghersad et al., 2021).
- The corporation also employs a variety of promotion and excitement strategies across all of its operating regions in strategy to garner better and quicker suppliers and make acquisition of high-quality raw materials relatively convenient.
- To summarise R.M. Williams’ entire organizational processes, marketing comes first, followed by planning and designing, product research, procurement, supply chain management, and worldwide sales.
The distribution network of R.M. Williams can be depicted as a diagram, with the roles of manufacturers, suppliers, customers, and distributors clearly defined and explained in details.
Figure: Supply chain of R.M. Williams
(Source: Self-created)
Effective knowledge administration aids in the elimination of shortfalls and the reduction of the organization’s excessive inventory levels. The accessibility of data and information enables R.M. Williams to project a more positive worldwide image to consumers and stakeholders while also maintaining a transparent structure (Sharma et al. 2021). The organization’s flow of information enables its stakeholders to establish the groundwork for making a substantial impact on the accomplishment that R.M. Williams is capable of accomplishing in the marketplace.
The pattern of flow of information maintained or practised by the organization continues in the format of distributors to the target consumer. Such pattern of flow continues in the “Upstream to Downstream” direction. Shoes are the type of product that must be created with the utmost care because R.M. Williams’ performance and development are fundamentally dependent on the personal preferences and enhanced preferences of the customers. As a result, it’s still critical to provide all providers with appropriate information. The greater the flow of information to suppliers, the more likely the company will be successful in the business world and instil a friendly perceptions and preference in the minds of the target and as well as potential customers.
R.M. Williams can adjust to market changes more swiftly because to better inventory management. Inventory management also allows R.M. Williams to better control stock-flow and provides the company more flexibility in responding to many types of adverse scenarios (Baghersad et al. 2021). To stay up with current market conditions and maintain a presence on the market, the organisation is working to improve inventory management. It is critical to keep stock surpluses to a minimum in order to save holding expenses (Sadouskaya 2017). To deal with inventories, the corporation used the weighted-average method. Currently, the company intends to “not chase down market sales” and instead focus on improving the inventory management process in the future. R.M. Williams is expected to boost its revenues by around 23 percent in the next years, according to estimates.
The Supply Chain Procedure of R.M. Williams
R.M. Williams’ supply chain is big, varied, and multi-tired, as it is a highly decorated entity within Australia’s borders. R.M. Williams’ systematic and precise methodology aids in the management of improved amicable relationships with all suppliers. The organization’s employees, as well as all of the company’s service outlets and factories, play a critical role in the organization’s sustainability initiatives. R.M. is depicted in the institution’s supply chain strategy (Petersen et al., 2018). Williams upholds higher employment requirements and follows a strict code of conduct to effectively manage the employees’ safety and health, and he is always on the lookout for potential suppliers and manufacturers. With the exception of the organization’s own monitoring operations, the corporation also allows many unexpected releases from diverse third parties, which help establish the legitimacy of multiple pieces of information. R.M. Williams’ global supply chain stretches from several layers to strategic manufacturing designers and partners, the suppliers of the materials, and as well as several other sources of materials such as leather, cotton, or natural rubber utilized in shoe manufacturing. According to estimates, about 63 percent of the suppliers have worked with this company in the preceding ten years. The supplier relationship is primarily decided by particular performance-based criteria that are further analysed and evaluated by corporate executives on a regular basis. Finally, R.M. Williams is one of those organizations that makes its supplier list available to all of its stakeholders in a transparent manner.
R.M. Williams’ main logistic support team concentrates on alternative tactics that may be used to give what the clients legitimately desire (Khan & Yu 2019). The essential component of the logistics support department of the firm is to notice the demands of the consumers and prepare the things in accordance with those needs. R.M. Williams has also rendered everything totally automated, ensuring that things are delivered on time and also that the supplier, the organization, and the eventual customers are together on the same page. The logistic support team is likewise concerned with increasing overall efficiency by employing the available outsourcing resources and strategies.
Conclusion:
R.M. Williams shoe company is one of the most well-known companies operating within Australia’s borders. As one of the most well-known companies, the corporation is able to build a proper supply chain, which is required to be more successful in the market by nature. R.M. Williams can use the supply chain to his advantage.
- Participating in the development of a sustainable supply chain.
- To improve the supply chain increasingly confident and professional, R.M. Williams must create adequate collaboration methods.
- Development and adaptive design strategies are being implemented.
- The requirement to deploy a cost driver will allow the organization to obtain a competitive edge while maintaining performance of the supply chain.
References:
Petersen, M., Hackius, N., & von See, B. (2018). Mapping the sea of opportunities: Blockchain in supply chain and logistics. it-Information Technology, 60(5-6), 263-271.
https://tubdokservice.tub.tuhh.de/bitstream/11420/6903/1/AAM_4.pdf
Tien, N. H., Anh, D. B. H., & Thuc, T. D. (2019). Global supply chain and logistics management. Dehli: Academic Publications.
https://www.researchgate.net/profile/Nguyen-Tien-32/publication/338570722_Global_Supply_Chain_And_Logistics_Management/links/606f81e092851c8a7bb2dc2a/Global-Supply-Chain-And-Logistics-Management.pdf
Sadouskaya, K. (2017). Adoption of blockchain technologyin supply chain and logistics.
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https://books.google.co.in/books?hl=en&lr=&id=vU51DwAAQBAJ&oi=fnd&pg=PA35&dq=supply+chain+%26+logistics+R.M.+WILLIAMS+shoe+company&ots=FeogI79teW&sig=5WtslpBC40nNCkngZD2GRb2qGXo
Sacristán-Díaz, M., Garrido-Vega, P., & Moyano-Fuentes, J. (2018). Mediating and non-linear relationships among supply chain integration dimensions. International Journal of Physical Distribution & Logistics Management.
https://research.rug.nl/files/75659768/References.pdf
Wanninayake Mudiyanselage, D. T. A. (2020). The relationship between sustainable and ethical supply chain disclosures and competitive advantage in the apparel manufacturing sector (Doctoral dissertation, Auckland University of Technology).
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Rogerson, M., & Parry, G. C. (2020). Blockchain: case studies in food supply chain visibility. Supply Chain Management: An International Journal.
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Sharma, M., Luthra, S., Joshi, S., & Kumar, A. (2021). Accelerating retail supply chain performance against pandemic disruption: adopting resilient strategies to mitigate the long-term effects. Journal of Enterprise Information Management.
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