Assignment Task:
One of the world's largest manufacturers of Shoes, Marker Shoe Company Limited needs little introduction, as the company has experienced problems of market assessment, market research and development center and product distribution methods faced as big challenge leading to produce supply chain risk source at different point which leads them out of global competition.
However, the company needed to reduce supply chain expenditure significantly after bringing its low-shoes raw materia to market. Supply chain costs of around $5.50 per/package of the shoe material were bearable for units selling for $100 per tonne, but the price of the new shoe raw materials was a fraction of that, at about $20.
The Supply Chain Cost Reduction Challenge: Somehow, Marker Shoe Company Limited had to reduce the supply chain costs for the Atom chip, but had only one area of leverage-inventory.
The shoe material had to work, so Marker Shoe Company Limited could make no service trade-offs. With each pair of the shoe product being a single component, there was also no way to reduce duty payments. Marker Shoe Company Limited had already whittled packaging down to a minimum, and with a high value-to-weight ratio, the raw material distribution costs could not be pared down any further.
The only option was to try to reduce levels of inventory, which, up to that point, had been kept very high to support a nine-week order cycle. The only way Marker Shoe Company Limited could find to make supply chain cost reductions was to bring this cycle time down and therefore reduce inventory.
The Path to Cost Reduction: Marker Shoe Company Limited decided to try what was considered an unlikely supply chain strategy for the leather industry: make to order. The company began with a pilot operation using a manufacturer in Turkey. Through a process of iteration, they gradually sought out and eliminated supply chain inefficiencies to reduce order cycle time incrementally. Further improvement initiatives included: Cutting the Leather assembly test window from a five-day schedule, to a bi-weekly, 2-day-long process, introducing a formal S&OP planning process and Moving to a vendor-managed inventory model wherever it was possible to do so
Supply Chain Cost Management Results: Through its incremental approach to cycle time improvement, Marker Shoe Company Limited eventually drove the order cycle time for the Leather down from nine weeks to just two. As a result, the company achieved a supply chain cost reduction of more than $4 per unit for the $20 package -a far more
Question: Show how to analyze the supply chain market operation so as to enhance the competitive strength in the global market with the final products with graphical illustrations.