Strategic Practices and Supply Chain Management at Euroscot Marine

1. Description of organizational routine practices and accepted standards and comparison of strategic concepts

Euroscot marine is a veteran power boat manufacturer in Dundee. The revenue is generated with a constant purchase of the product that they are supplying. It has also found out that understanding the end users’ needs are important in order to manage them in an appropriate way. Among all power boat manufacturers in Europe, the company is trying heart and soul to differentiate the product and increase the sales in 300 countries. The accepted standards are based on quality, responsiveness and innovation management (Gurzawska, 2020). Key vendors are linked within the organization to provide products at a reasonable cost. Some strategic practices done by the organization are:

Starting a partnership relation with suppliers and managing instrument panel control

Local vendors are contacted at first for safe and fastest delivery of hardware

Joining bigger groups of manufacturer for designing the product have been observed

Strategic concepts are those which help in seeking and identifying opportunities and threats in market industry. In terms of common strategies that are taken by most of the brands this organization is identified to be in benefits as it goes local (Inigo, and Blok, 2019). Local vendor inclusion in big-shot business is important since there is maximum profit generated by getting faster and lower priced hardware. It also encourages the income of local vendors so that the overall economy is contributed.

2. Explanation of the characteristics of strategic management suitable for supply chain

Suitable strategies of supply chain are consistency of leadership, technology implementation, supply chain planning and network design are observed. Effective supply chain planning is associated within network designing. Understanding the components that leave an impact upon people to build a strong relationship is required. Next generation of supply chain needs to process the following features:

Flexibility

Global Reach

Going green and improving sustainability

Optimized inventory

Speedy delivery

Innovativeness

Some of the redesigning, embracing modern look is helping elevate the brand in a cleaner and aesthetic view. For a world class boat manufacturer the product shows offerings that simultaneously impacts growth of the organization. Engaging in exclusive enterprise sales applications is important to get quick navigation of products (Luthra, and Mangla, 2018). The intuitive, offline digital tool guides a person through the advisory sales process. Business clarification on the operations are important to balance the portfolio of components. The constant innovations and patenting is important to be performed so that customers are getting a better product each year.

3. Description of the different levels of existing strategy

As of now, the company tries to position itself in the top most boat manufacturers. They are having good customer service to support their customers through all their queries. Lowering the price allows us to focus on the product much more. Euroscot marine is taking maximum price breaks for driving upon quality, responsiveness and innovation. Management of total inventory and the costs associated with large-lot delivery. As a part of premium innovation management Dundee personal agency is contracted to outsource new recruits. Certain criteria are followed for following screening criteria (Mani et al. 2017). The management of innovative approaches are important for benefitting the end user. “Key vendors are so tightly linked with the company that they meet with designers to discuss material changes to be incorporated into new product designs”. Strategies include using an arrangement with the vendor so that vendor title is not transferred until all parts are used by Euroscot Marine.

4. Explanation of how strategic management operates in different types of industry

The strategic management for operating different types of industry is important so that a huge amount of profit is generated. The suppliers are urged to reduce the cost of large purchases and the European Boat builders association is under practices. Scheduling becomes an important process since the clients and customers are to be provided service on urgent notices. Assembling, testing and delivery becomes important to manage the probability of overages and shortages. According to this organization “Supply chains must not remain stagnant. When you don’t employ strategies to transform the supply chains of the next generation, it is equivalent to losing revenue”. An optimized inventory of hardwares required for the development of a boat helps in lessening the loss and maximizing the profit (Morais, and Silvestre, 2018). Going green for a sustainable supply chain environment is important so that utilization of raw materials becomes important for sustainable business operations. Locally limiting the delivery of products to a global scale is important transporting the components across the world.

5. Evaluation of supply chain models related to strategic purchasing

1. Agile strategy: in this strategy the product is developed so that the product responds towards change, risk and uncertainty. Self-organizing teams are observed for creating fast prototypes in collaboration with each other. The approach is to plan and implement organizational strategy to quickly respond towards customers’ queries and demands. Self-organizing teams helps in an improved growth of euroscot (Neutzling et al. 2018).

2. Strategic alliances: Strategic alliances are generated with local markets. These vendors are selling economically priced hardwares to the company. The company is generating revenue by getting lower prices for raw material. Moreover, there is a group called EBBA which reduces the cost of large purchases by working in groups. It is demonstrating an approach to manage firms’ overall competency.

3. Increased productivity: The productivity can be increased by managing the employees. All these employees are having a good knowledge on increasing productivity and utilizing the right resources for optimized delivery.

6. Explanation on how internal and external forces leave an impact on organisational design

External factors like political, economic, social and technological impacts on the organization. Internal factors like management, restructuring helps in the process of change of the organization. Management is impacted with scheduling. Since the organization is making boats the timing is considered to be stochastic (Tebaldi, Bigliardi, and Bottani, 2018). Receiving many parts and organizing them using inventory becomes a challenge for large scale production. Restricting old processes and enabling technology oriented processes is important to manage the business smoothly.

References

Journals

• Gurzawska, A., 2020. Towards responsible and sustainable supply chains–innovation, multi-stakeholder approach and governance. Philosophy of Management, 19(3), pp.267-295.
• Inigo, E.A. and Blok, V., 2019. Strengthening the socio-ethical foundations of the circular economy: Lessons from responsible research and innovation. Journal of cleaner production, 233, pp.280-291.
• Luthra, S. and Mangla, S.K., 2018. Evaluating challenges to Industry 4.0 initiatives for supply chain sustainability in emerging economies. Process Safety and Environmental Protection, 117, pp.168-179.
• Mani, V., Delgado, C., Hazen, B.T. and Patel, P., 2017. Mitigating supply chain risk via sustainability using big data analytics: Evidence from the manufacturing supply chain. Sustainability, 9(4), p.608.
• Morais, D.O. and Silvestre, B.S., 2018. Advancing social sustainability in supply chain management: Lessons from multiple case studies in an emerging economy. Journal of Cleaner Production, 199, pp.222-235.
• Neutzling, D.M., Land, A., Seuring, S. and do Nascimento, L.F.M., 2018. Linking sustainability-oriented innovation to supply chain relationship integration. Journal of Cleaner Production, 172, pp.3448-3458.
• Tebaldi, L., Bigliardi, B. and Bottani, E., 2018. Sustainable supply chain and innovation: A review of the recent literature. Sustainability, 10(11), p.3946.

ASSESSMENT 2: SUPPLY CHAIN-BUSINESS STRATEGY

1. Description of methods of strategic analysis in modern organisations

In modern organization, the strategic analysis consists of certain methodologies which are based on common factors such as identification and evaluation of relevant data towards the company's strategic development. Defining the internal and external environments to be analyzed. Uses of methods such as SWOT analysis, Porter’s five forces are seen. Vision, mission and values are well defined that encourages fundamental beliefs of an organization reflecting its commitments and ethics (Mani, Gunasekaran, and Delgado, 2018). An environmental analysis of current practices helps to identify loopholes of the organization. Formulation of plans for a low cost operation management and implementing viable practices are part of modern organisation. In today's world, there is no saying of “no ''.

Corporate level strategies indulge in gaining competitive advantage and indulging in corporate level decisions encompassing company decisions. Functional indulgence for associative learning and observation has become an important step in the business life cycle development of this Euroscot Company. Detailed descriptions of the process are as follows:

SWOT

2. Evaluation of the options available to organisations for growth and development

The options which are available to the organization for growth and development are essential to encourage education and employment on the rise. The chance of becoming autonomous and using applications for managing inventory and customer relationships has to be taken by the organization (Tseng et al. 2018). “By getting key suppliers on board early and urging them to participate at the design stage, Euroscot improves both innovations and quality while speeding product development.” The additional technique is to work with personal agencies as a part of outsourcing, recruiting and screening of employees. Locally sourced suppliers can help in on-hand inventory related costs largely. High quality components are designed through CAD systems. Production of new boats are important by following a mission of giving customers the required amount of priority. Making products which are distinctive and providing a high-value to customers. A constant motivation that targets upstream and downstream flow of products, services have been observed (Kazancoglu, Kazancoglu, and Sagnak, 2018.). The mission of becoming a unique luxury board designer is relevant with the strategies of companywide design. It also needs to focus on developing good relations with customers so that the trust factor is improved.

3. Identification and evaluation of the major issues associated with the implementation of the strategy

The strategy becomes unemployable since there are certain barriers of acceptance introduced inside the organization. Employees might consider the strategy to be weak enough to not perform well. They might resist the change of becoming autonomous and use applications for managing inventory and customer relationships (Feng, Zhu, and Lai, 2017). Ineffective training on being capable of using the tools and techniques for inventory management might become a reason for rage between employees. Lack of resources becomes a primary cause of not being able to implement a change. Lack of communication is also an important part to be analyzed since upper management has to ensure that their visions are communicated well within all people involved. Rebelling against managers enforcing new sets of rules are common in any organization that might leave an impact on non-implementation of strategies.

4. Identification and explanation of the challenges faced by the organisation

Some challenges are identified as unavailability of staff to understand the formulation of issues. There are implementation challenges such as barriers to resource management. Basic research components need to be managed in terms of health and social care responsibility undertaken by the concerned authority. Some challenges incorporate strategic evaluation of the process including environmental scanning and identifying problems within organization development. Gaining support from all the related entities becomes one of the major threats in this implementation process (Ellram, and Murfield, 2019). Managers need to adapt more humble ways of communication and that should reach all the people out there. Constant monitoring is not always done since the business concerns need to be dealt with immense prioritization. Encouraging the use of employee timesheets have become important so that the appraisals can be created easily with a tracking of performances as well. Partnering with upstream supplier of direct materials becomes a current component in the organizational issue.

5. Description of the development of resource planning

The development of resource planning is processed using a cost prediction tool that focuses highly upon the quality, responsiveness and innovation. Resource planning is done by contacting an agency that works with outsourcing. This agency is capable of supplying human resources to the organization that works hand-to-hand with the organization. Joining in a treaty with other boats manufacturing organizations is identified to be beneficiary. There exists cost reduction components for the management of large purchases (Al-Sheyadi, Muyldermans, and Kauppi, 2019). Using inventory management software helps in reducing on hand delivery 22 days. The turnover of 16.8 times in a year is observed. This company is also navigating towards a billion dollar competitor Brunswick that also manufactures boats. Constant updating the suppliers and using CSR to manage relationships with them is essential. Elimination of 40 non-value added man hours have also been observed for cost-effective solution management.

Looking for further insights on Strategic Planning in Procurement? Click here.

References

Journals

Al-Sheyadi, A., Muyldermans, L. and Kauppi, K., 2019. The complementarity of green supply chain management practices and the impact on environmental performance. Journal of environmental management, 242, pp.186-198.

Ellram, L.M. and Murfield, M.L.U., 2019. Supply chain management in industrial marketing–Relationships matter. Industrial Marketing Management, 79, pp.36-45.

Feng, Y., Zhu, Q. and Lai, K.H., 2017. Corporate social responsibility for supply chain management: A literature review and bibliometric analysis. Journal of Cleaner Production, 158, pp.296-307.

Kazancoglu, Y., Kazancoglu, I. and Sagnak, M., 2018. A new holistic conceptual framework for green supply chain management performance assessment based on circular economy. Journal of Cleaner Production, 195, pp.1282-1299.

Mani, V., Gunasekaran, A. and Delgado, C., 2018. Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective. International Journal of Production Economics, 195, pp.259-272.

Seman, N.A.A., Govindan, K., Mardani, A., Zakuan, N., Saman, M.Z.M., Hooker, R.E. and Ozkul, S., 2019. The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of cleaner production, 229, pp.115-127.

Tseng, M.L., Wu, K.J., Hu, J. and Wang, C.H., 2018. Decision-making model for sustainable supply chain finance under uncertainties. International Journal of Production Economics, 205, pp.30-36.

ASSESSMENT 3: SUPPLY CHAIN-BUSINESS STRATEGY

1. Evaluation of the relationship between the supply chain and corporate strategies.

In order to improve supply chain management the company Euroscot highly works with alternatives such as contacting personnel agencies to gain outsourcing people. Recruiting and screening process of employees. In order to stay competitive the product differentiation strategy is introduced (Gupta, Kusi-Sarpong, and Rezaei, 2020). This refers to the products with new innovation and newer styling process of staying competitive in the luxury performance boat market. High quality CAD systems are used for producing quality boats. Strategic goals can be aligned with corporate strategies in terms of:

• Defining and communicating the biggest failure points to a corporate goal. The features, price and delivery need to be sturdy enough to hold the expectations of the company people.
• Identification of the areas of corporate strategy that enables supply chain through applying supply chain objectives. The steps are essential in terms of outsourced decisions asking the client to give their valuable feedback so that the product information is improved.
• Structuring of the supply chain is essential since it helps in the supplier selection, business terms and inventory planning (Hahn, 2020). Flexibility and responsive behavior gives stability against all the odds.
• Keeping up the process of realigning and putting the schedules as priorities makes the progress to its core.

2. Explanation of the roles of value analysis and value engineering within the supply chain.

The role of value analysis and value engineering within the supply chain becomes important since all the employees are not competent in using the internet for organizational improvement. The variety is observed within a comprehensive analysis of the work being done for high quality luxury boat manufacturing. The analysis is as follows:

Primary activities

Inbound logistics: The parts which are needed for the assembling boats are collected from local vendors to reduce the chaos and cost. It provided faster delivery of product to the clients.

Outbound logistics: After the assembling process is completed all the PC’s are transferred to the shipping department. The delivery of the final product takes 1 weeks of time (Hong et al. 2019). Major output of the company is built to customer orders having a small inventory being produced to cater to the needs of retailers and wholesalers.

Operations

All the workers perform tasks in assembly lines. However, all employees are required to be working at consumer durable actions and in the favor of an improved assembly line. Commonly ordered features are pre-assembled on the product so that the company's latest innovations are prioritized and improvised upon the customer strategies.

Marketing and sales

The company shares a mixing of sell-direct to customer components so that the retailer gains enough support for their products to be sold. In this case, the end users agreement needs to be processed so that the promotional components are managed with value added services for customers (Kusi-Sarpong, Gupta, and Sarkis, 2019).

Service

After sales services are identified to be adding value within the R & D group of the company so that quality of parts, finished products are managed highly.

Support activities

Procurement

Maintaining the quality component becomes easier with a close working with the components. Suppliers engineering is highly stationed at the company so that reduction of cost out of the supply chain is observed.

Human resource

Human resource management encourages 88200 employees worldwide, 57% of the employees are allowed to take part in the frontline roles with the customers.

General administration

It has formed alliances with local service providers for improving the service and providing efficacy of the dynamic factors of value chaining (Kwak, Seo, and Mason, 2018). Getting an entrance into the global market handles the dynamic factors of value chaining and overall performances.

3. Evaluation of the evolution of purchasing within the organisation and its effect within the supply chain.

Evolution of purchasing is important and it is occurring every now and then within an organization. Obtaining raw materials and supplies at lowest prices becomes an important stage to the strategic sourcing. The contracts were more focused on long-term activities. The supplier relationship building and management starts with steps included in purchase like inventory management, warehousing, transportation and related functionalities. The evolution of the purchase cycle helps in ordering, obtaining information and managing business needs through paying for the goods and services (Li et al. 2019). Professionalism is identified to be more on the strategic orientation and transactional. Higher value and higher impact ROI projects are improvised. Five of the key metrics are optimizing the supply chain operation such as:

Inventory turnover

Cash-to-cash time management

Perfect order index

Transforming raw materials into finished products are important parts of the business process

The 5 R’s purchasing the right quantity at the right place and right time is observed upon the right price of the delivery item. “Making the need emerge so as to be able to source suppliers capable of solving the problem is prioritized".

4. Description on the effects of coordination within the supply chain.

The effects of coordination within the supply chain can be described in terms of managing research components of the complex product and determining the characteristics precisely (Tebaldi, Bigliardi, and Bottani, 2018). Determining the best solutions with a life expectancy is drafting the specifications within a tender. The coordination of the supply chain helps to grow for the stages of taking actions to align with total supply. Chain surplus is important to be calculated while all information is taken into account to manage damage over other stages.

5. Evaluation of the impact of environmental and ethical issues on supply chain innovation

Ethical issues that might be encountered includes the following aspects:

1. Freedom of employment and association

2. Anti-bribery and corruption handling

3. Appropriate pay and working hours

4. Environmental awareness

5. Human and non-discriminatory treatment of labors

6. Safe and hygienic working conditions

7. The eradication of child labor

The impact on the environment includes quick and effective disposal of waste materials along with engaging in protect the seas campaign. There should be a lessening approach on uses of plastics in their working premises (Tebaldi, Bigliardi, and Bottani, 2018). A focus has to be made upon the employees so that they do not spread the litters around organizational premises. Using a green computer and lowering carbon emission while manufacturing can be highly recommended in this situation to decrease the risk associated with suppliers.

References

Journals

Gupta, H., Kusi-Sarpong, S. and Rezaei, J., 2020. Barriers and overcoming strategies to supply chain sustainability innovation. Resources, Conservation and Recycling, 161, p.104819.

Hahn, G.J., 2020. Industry 4.0: a supply chain innovation perspective. International Journal of Production Research, 58(5), pp.1425-1441.

Hong, J., Zheng, R., Deng, H. and Zhou, Y., 2019. Green supply chain collaborative innovation, absorptive capacity and innovation performance: Evidence from China. Journal of Cleaner Production, 241, p.118377.

Kusi-Sarpong, S., Gupta, H. and Sarkis, J., 2019. A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research, 57(7), pp.1990-2008.

Kwak, D.W., Seo, Y.J. and Mason, R., 2018. Investigating the relationship between supply chain innovation, risk management capabilities and competitive advantage in global supply chains. International Journal of Operations & Production Management.

Li, Z., Yang, W., Liu, X. and Taimoor, H., 2019. Coordination strategies in dual-channel supply chain considering innovation investment and different game ability. Kybernetes.

Tebaldi, L., Bigliardi, B. and Bottani, E., 2018. Sustainable supply chain and innovation: A review of the recent literature. Sustainability, 10(11), p.3946.