Brunswick distribution inc case study solution

360 PART 3 MANAGING SUPPLY CHAINS and chargers can be added, or the products can be repackaged to meet the requirements for retailer displays. Finally, the products can be shipped to thousands of retail outlets in the United States, Latin America, and the Caribbean. The redesigned supply chain not only improves the flow of products from origin to destination, it also provides Nikon with timely information of the status of shipments and advance notices of their delivery throughout the extent of the supply chain, including the retailers. Armed with this information, Nikon can make adjustments to delivery times to accommodate sales opportunities that otherwise would be missed. Despite the complexity of the supply chain, products leaving Nikon manufacturing facilities can now be on a retailer’s shelves in as few as two days. Sources: UPS Supply Chain Solutions: Nikon Focuses on Supply Chain Innovation—and Makes New Product Distribution a Snap, www.ups-scs.com, 2005; www.Nikon.com, 2011 LEARNING GOALS After reading this chapter, you should be able to:  Explain the strategic importance of supply chain design.  Identify the nature of supply chains for service providers, as well as for manufacturers.  Define the critical supply chain performance measures.  Explain the strategy of mass customization and its impli-  Define the important decision factors to be considered when employing an outsourcing or offshoring strategy.  Explain how efficient supply chains differ from responsive supply chains and the environments best suited for each type of supply chain. cations for supply chain design. Nikon, partnering with third-party logistics provider UPS, is an excellent example of how a supply chain design Designing a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy. supply chain can be successfully tailored to the market needs of a dynamic product. A supply chain is the interrelated series of processes within a firm and across different firms that produces a service or product to the satisfaction of customers. More specifically, it is a network of service, material, monetary, and information flows that link a firm’s customer relationship, order fulfillment, and supplier relationship processes to those of its suppliers and customers. It is important to note, however, that a firm such as Nikon may have multiple supply chains, depending on the mix of services or products it produces. A supplier in one supply chain may not be a supplier in another supply chain because the service or product may be different or the supplier may simply be unable to negotiate a successful contract. The firm’s operations strategy and competitive priorities guide its supply chain choices. Figure 10.1 shows the three major areas of focus in creating an effective supply chain. 1.  FIGURE 10.1 Creating an Effective Supply Chain Link Service/Products with Internal Processes. Parts 1 and 2 of this text have shown how firms coordinate internal process decisions with the competitive priorities of the services or products covered in the operations strategy. 2. Link Services/Products with the External Supply Chain. The competitive priorities assigned to the firm’s services or products must be reflected in the design of the network of suppliers. 3. Link Services/Products with Customers, Suppliers and Supply Chain Processes. The firm’s processes that enable it to develop what customers want, interact with suppliers, deliver services or products, interact with customers, address environmental and ethical issues, and provide the information and planning tools needed to execute the operations strategy are the glue that binds the effective supply chain. Service/Product Link Services/Products with External Supply Chain Link Services/Products with Internal Processes Processes Supply Chain Link Services/Products with Customers, Suppliers,