SG7001 Assignment Sample
Supply Chain Relationship Management
At the preliminary stage, Atelier Chiang Mai Clothing has implemented a cost analysis of the entire supply chain procedure so as to produce high quality products to customers at a faster pace. According to Azmi et al. (2017), analyzing the supply chain cost allows companies to quickly lower the costs on different areas so as to gain economies of scale. However, since the company is quality oriented and targets the higher income segment, it does not provide attention to price. Instead, it pays attention to speedy availability of the products whenever there is a change of trend or pattern in the market. The adoption of technology has also helped in establishing a closer connection between the customers and suppliers. They can communicate on digital and online platforms through which their needs can be identified.
The supply chain department of the concerned company is owned by it and is not contractual. This has helped in establishing a closer connection between this company and its suppliers and the production procedure takes place at areas owned by Atelier only. As influenced by Dubey et al. (2019), the inclination towards sustainable production procedure has helped in economic stability of suppliers. Since the company focuses on targeting upper income groups, a fair percentage of profitability earned by it is shared with suppliers. Furthermore, there is also adequate time spent on research and development initiatives which provides competitive advantage to the concerned firm. The business keeps a close track on changing patterns, demands and consumption of customers and quickly responds to it by manufacturing new products. The information is then shared with suppliers fast through digital platforms and thus, they take part in production process. In this way, the company has maintained a close link between suppliers and customers to satisfy both of them during supply chain
Reference List
Azmi, I., Abdul Hamid, N., Md Hussin, M.N. and Ibtishamiah, N., (2017). Logistics and supply chain management: The importance of integration for business processes. Journal of Emerging Economies & Islamic Research, 5(4), pp.1-8.
Dubey, R., Gunasekaran, A., Childe, S.J., Papadopoulos, T. and Helo, P., (2019). Supplier relationship management for circular economy. Management Decision, pp.23-31.
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