Complete your final project, the location justification report.

International Supply Chain Management

Darlene Ames

Southern New Hampshire University

July 20, 2017

Constraints

Introduction

The organization that exhibits global business operations are associated with many challenges. Some of the challenges revolve around supply chain management issues. The supply chain management plays an important role in the distribution of goods and services to the final consumers or the organizational customers. Therefore, given the fact that the supply chain management is directly associated with the sales of the organization, the challenges greatly affect the existence and the profitability of the organization’s activities (Bowersox, Closs, & Cooper, 2002). As a result, it is always crucial to propel appreciative management decisions with regard to the supply chain management challenges for the purpose of factoring a positive progress of the organizational activities in terms of existence and profitability.

Constraints/bottlenecks

The constraints associated with my recommended location with regard to the supply chain management are the bottlenecks, and the transportation constraints.

Inconsistency in the inventories

The inability of the suppliers to maintain a successful and reliable supply to the organization is the major bottleneck within the organization. Reason being, most of the South Korean companies have adopted global operations. Therefore, they tend to favor the global supply as compared to their local customers. Also being a new organization within the new country, maintaining the trust of suppliers must take time. Therefore, the company is facing a temporary problem in the consistency of its suppliers (Lambert & Cooper, 2000). As a result, the company cannot respond positively to its inventories in the newly established branch within the Korean territory. This has negatively impacted the ability of the organization to initiate an appreciative and consistent supply to its customers. A matter that has made some of the target customers of the organization to opt for other competitors within the same discipline.

A proper management of the chain of supply must also consider production based on the availability of customers. The organization is new within the market of the new country. As a result, the organization has not maintained a proper marketing within the new country. This has greatly affected the level of inventory within the organization. The organization cannot comply with the supply to the target customers, as the customers still have a skeptic feeling about the quality and the nature of the organizational products (Houlihan, 1985). Moreover, the organization opted to produce more for the purpose of responding positively to the unknown demand from the unexpected customers. This has increased the level of inventories within the organization. Therefore, the organization finds itself going at a loss by spending more on its expenses as compared to the return on the expenses.

The System for Minimizing the Constraint: The most appropriate system that can be utilized to handle the inconsistence of the inventories based on the marketing and suppliers’ inability to respond positively to the organizational expectations is the Theory of Constraints solution. The theory focuses on the scientific approaches to initiate an improvement in the inventory condition of an organization. Given the nature at which the theory approach a constraint, the theory can be used in the identification process of a constraint, exploiting the constraint, subordinating and synchronizing the constraint, and evaluating the performance of the constraint (Bowersox, Closs, & Cooper, 2002). Therefore, using the Constraints solution theory, I propose that the organization employ more of its efforts in the marketing. This will help in reducing the accumulated inventories within the company. As a result, the narrow points that discourages production activities will be approached with positive performance.

Transportation Constraints

Another constraint that affects the supply chain management of the organization in the international country is the inability of the organization to afford the transportation expenses. The industrialization within the organization’s international country has been highly localized. Meaning, the industries within the country have been established far from the market place. Therefore, the organization is finding it difficult to establish a proper pricing of its product with regard to the excessive transportation costs as the organization’s main expense (Houlihan, 1985). A matter that has lowered the organizational sales due to the inability of the organization to cope with its competitors within the market of the organization’s international market.

Strategies for minimizing the impact of the strategy: The organization should conduct an intensive market research about the competitors, and how they cooperate with the discouraging transportation system. With this, the organization will be in a better position to factor a promising decision about the transportation constraint within the new country of operation. Moreover, I recommend for a push system of managing the supply chain constraints. Of course, from the explanation, it is clear that the organization has been responding slowly to its marketing and market research strategies. Therefore, I recommend strategic management with an intensive effort on the marketing issues within the organization (Bowersox, Closs, & Cooper, 2002). This will allow the concerned parties to roll their sleeves and work extra-ordinary in ensuring a positive response to the pricing issues verse the organizational expense. In fact, this will sell the name of the organization with which the suppliers will have a constructive trust in the organizational ability to factor constant orders from the suppliers.

References

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2002). Supply chain logistics management (Vol.2)

New York, NY: McGraw-Hill, http://trove.nla.gov.au/version/208084874

Houlihan, J. B. (1985). International supply chain management. International Journal of Physical DistributionMaterialsManagement, http://onlinelibrary.wiley.com/doi/10.1002/tie.5060270308/abstract

Lambert, D. M., & Cooper, M. C. (2000). Issues in supply chain management. Industrial marketing

management, http://www.hatfieldandassociates.com/pdf/issues_in_scm.pdf