The Manufacturing industry is active and complex as it entails companies within the industry to continually adapt for them to stay competitive globally. With the rapid increase of competitors, fluctuations in demand and high expectations from customers and stakeholders, manufacturing companies are trying their best to streamline all their supply chain activities to provide more efficient services.
Their supply chain activities have to take into consideration factors such as quality improvements, innovation development and efficiency. These factors are important as they prioritize the various demands and requirements of their clients, thus enabling companies be flexible and quick to respond. All this aims to make the company’s successful as all suppliers and contractors have to work as a team in order to ensure there are delays and lapses in the assembly of the final product.
Riordan Chinese Factory
Riordan’s China factory has been operating as a subsidiary division of Riordan. The factory generates estimates of electric fan sales all over the globe. It lists and plans the manufacture of electrical fans to achieve forecasted sales targets. The electric motors attached within the fans are full assembled units bought the domestic market in china. While Riordan manufacturing has attempted to sustain ample stock numbers of electric motors, in order to satisfy all their needs, the firm’s recent on-time deliveries for the last year has stood at an average rate of ninety three percent.
The present supply chain model implemented by the company is akin to the “responsive supply chain model” which is often regarded as having the capability of quickly adapting products to the distinctive needs of each client. The company has also implemented a built-to-order and customization processes for the assembly of the electrical fans.
Domestic suppliers have also been contracted to acquire plastic polymers used in the making and assembly of the different fan parts. The production timetable of the final fans that have been assembled is a section of make to stock operations. These operations are at present, planned to contain forecasted sales. The fans that been assembled and packaged are presented for distribution and final client pick up.
Additionally, the Riordan Chinese factory assembles custom fans for special customers on a contractual basis.
Manufacturing companies such as Riordan have shifted their focus on supply chain management models to assist them in advancing their services and effectiveness. Companies such as Riordan have acknowledged the significance of employing supply chain management models as an element of advantage in the global manufacturing industry due to the rapid evolution experienced by the company and its competitors over the years.
The production of new fans at the china plant presents various challenges to the company. One of the key issues that the company is likely to encounter within the supply chain is interplant integration and management through smart information flow as a way of improving supply chain performance. Supply chain management, is considered as the harmonization and incorporation of business processes and is critical as it impacts the organization’s ability to meet all the needs for their clients.
This also has the effect of reducing costs efficiently. Researchers have emphasized that the Forrester effect across the manufacturing supply chain is generated due to extended lead times and order batching, thus leading to high cost of transactions down the chain. The only way of solving this challenge is through improvements in operational effectiveness within the chain.