SG7001 Supply chain relationship Activity 5 Assignment Sample
Supply Chain Relationship Management
The supply chain relationship of Atelier Chiang Mai Clothing hugely rests on the implementation of advanced technologies. In the opinion of Gandhi, Shaikh and Sheorey (2017), communication is one of the most important factors in supply chain relationships that help in exchange of information between customers and suppliers. The concerned company has understood the importance of technology and has integrated it in all levels of supply chain to ensure transparency and easy tracking by the customers.
However, an issue is lack of direct communication between the company and its customers as it sells products directly to consumers. As stated by Liu and Park (2020), it is important for a business to indulge in direct communication with customers through different channels such as phone calls, text messages, emails or social media. However, the dearth of direct interaction between the company and its customers is creating lack of knowledge and information of customers’ demand on the company. As a result of that, the suppliers are also unable to identify exact customer needs.
However, on the other hand, the company has successfully understood the demand of quality products. This is because it targets the higher income groups who are aware of fashion clothing quality. Therefore, it maintains a close relationship with suppliers in order to produce orders in bulk and to meet high demand in market. There is also closer communication of the company with its suppliers and there is constant data and information provided in order to make the suppliers well affluent with prevalent trends in market (Thongrawd et al. 2020). Despite inadequate communication with customers, the company has been able to hold positive attention of customers by constantly producing unique and high end products. There is also faster production of garments leading to quickly fulfilling customer needs. The suppliers are asked to keep raw materials ready for a speedy production procedure.
Reference List
Gandhi, A.V., Shaikh, A. and Sheorey, P.A., (2017). Impact of supply chain management practices on firm performance. International Journal of Retail & Distribution Management, pp.1-10.
Liu, F. and Park, K., (2020). Managing firm risk through supply chain dependence: an SME perspective. Journal of Business & Industrial Marketing, pp.34-65.
Thongrawd, C., Ramanust, S., Narakorn, P. and Seesupan, T., (2020). Exploring the Mediating Role of Supply Chain Flexibility and Supply Chain Agility between Supplier Partnership, Customer Relationship Management and Competitive Advantage. Int. J Sup. Chain. Mgt Vol, 9(2), pp.435-476.
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