5 The potential and actual benefits and limitations of these strategies for implication in the company
5.1 Benefits of SC strategies
5.1.1 Benefits of just-in-time management
The implementation of the just-in-time management strategy has a number of benefits. First, the company saves costs due to the minimization of stock of its products. Instead, the company delivers the required amount of products to its customers. Therefore, the company will balance its supply and demand. Moreover, the company will virtually meet the existing demand. In such a context, it is possible to point out the customer satisfaction as another advantage of the just-in-time management. In addition, the company will save costs on logistics because the company will not waste money on the delivery of excessive, unnecessary amount of chickens from Polish farms or on the delivery of processed chicken from its production facilities to its customers.
5.1.2 Benefits of direct supplies
Direct supplies will also bring considerable benefits to Schriskoope because the company will eliminate the third party logistics provider. The company will provide supply and delivery services using its own vehicles and logistics system. Therefore, the company will use its full potential to deliver products to the target market. In addition, the company will benefit because Schriskoope will improve its logistics (Hines, 2004). In fact, the company will have accurate information on the existing demand and the company will be able to deliver the required amount of chickens to its production facilities and the required amount of its products to its target customers. The elimination of the third party logistics provider will save costs of the company and time the company spends on the delivery.
5.1.3 Benefits of the use of ITC in supply chain management
The use of ITC in supply chain is also beneficial because the company will be able to balance its supply and demand. To put it more precisely, Schriskoope will collect the detailed information on existing demand using ITC. Second, ITC will help to process and communicate the information on existing demand to production facilities and Polish farmers. As a result, the company will receive the required amount of chickens and will supply the exact amount of its products to meet the existing demand (Halldorsson, et al., 2003). In addition, ITC will help the company to implement its just-in-time management strategy because the accurate information will minimize the risk of oversupply or stocking of excessive products.
5.2 Limitations of SC strategies
5.2.1 Limitations of just-in-time management
Along with a number of advantages, the just-in-time management still has some limitations. In fact, the just-in-time management may fail to respond adequately to unexpected change in the market. For instance, an unexpected growth or drop of demand may raise certain problems Schriskoope may fail to overcome, when the company uses the just-in-time management. For instance, if the demand rises unexpectedly, the company will be unable to raise the supply fast because it does not have the stock of products. However, taking into consideration the fact that the processing and delivery of products do not exceed 24 hours, this limitation is irrelevant, especially in relation to the positive effect the just-in-time management will have on the supply chain management of the company and on its marketing performance.
5.2.2 Limitations of direct supplies
Direct supplies have more limitations compared to the just-in-time management because the company will need to develop its own logistics system. To put it more precisely, the company will need to purchase vehicles to deliver chickens from Polish farms to the production facilities in Holland as well as the company will need to purchase vehicles to deliver processed poultry to customers. Such changes will need substantial investments from the part of the company. At the moment, Schriskoope may face difficulties with raising funds for the development of direct supplies because the deteriorating marketing performance of the company limits its financial resources, whereas the recent financial crisis limits the borrowing capability of the company.
5.2.3 Limitations of the use of ITC in supply chain management
The use of ITC in the supply chain management of Schriskoope is effective but the use of ITC raises the problem of adequate and effective using of new technologies by professionals working within the company as well as by Polish farmers. In fact, the company may need to develop its own information system that may need investments and its maintenance may be costly. In this regard, the company can outsource IT services to make using ITC more reliable and effective. Nevertheless, the effective use of the full potential of ITC may need additional training of professionals working within the company as well as Polish farmers. Therefore, the implementation of ITC is likely to need financial resources to be spent on the new information system of the company.
6 The role of global SC strategies to minimize the problems and limitations to achieve the goals
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