6.1 The contribution of global SC to minimize the problems
In fact, the global SC plays an extremely important part in the minimization of problems Schriskoope is currently facing. The aforementioned strategies and changes the company should introduce in its global SC can be highly effective. At the same time, the company should use the full potential of global SC. In fact, it is obvious that it is due to the global SC the company can purchase chickens in Poland, process it in Holland and sell in the UK, France, Belgium and other countries of the EU. The elimination of fiscal barriers between European countries allows the company to build up its logistics system throughout Europe without any fiscal pressure. In addition, the company can choose the best suppliers and sell its products in markets, which are the most attractive for the company at the moment.
The development of the global SC contributes to the development of new approaches to the business development. In actuality, the global SC opens large opportunities for the supply of products throughout different countries. The elimination of fiscal barriers increases the scope of international trade and supply of products and services. At the same time, products and services can be easily transferred fast because of the absence of barriers on the way of products and services. The global SC allows the company to expand its business fast through the expansion of the network of its operations and supply of goods and services. To put it more precisely, the company can choose the best suppliers, who can provide the company with products of the high quality. At the company uses Polish farms as its strategic suppliers. However, the company can change suppliers easily, if suppliers located on other countries can make the company a better offer or products of the higher quality.
6.2 The limitations to achieve the goals
On the other hand, the suggested strategies along with the global SC have certain limitations. In fact, the global SC makes the company dependent on the situation in international markets. In addition, the company has to develop its supply chain management internationally. Therefore, the company should deliver its products for a long distance within 24 hours that apparently increases costs of the delivery because the products should be delivered fast. Moreover, the company has to be certain that customers will purchase the products it delivers. Otherwise, the company will suffer from substantial financial losses because unsold products will be just spoiled.
However, the implementation of the global SC in the contemporary business environment raises certain problems and may threaten to the position of the company in the market. To put it more precisely, the company may face the risk of the growing competition in the global market. The large number of companies operating in the market and supply chain may be vulnerable to the impact of the competitive struggle, when companies have to decrease costs of supply and deliver its products and services fast and of the high quality. Nevertheless, the existing limitations of the global SC still provide large opportunities for business development in the competitive business environment.
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the company faces considerable problems because of the poor supply chain management and inability to match the existing demand in the market. In addition, the company has substantial problems with low cost quality and delivery of chickens from Polish farms to the production facilities located in Holland. The company uses the third party logistics provider that increases costs of supplies. In such a situation, the company should focus on the three strategies suggested above. The company should introduce the just-in-time management that will save costs of delivery and prevents overstocking of its products. Direct supplies will save costs of supply and eliminate the third party logistics provider, although this strategy will need to develop the company’s logistics system. In a long-run perspective, direct supplies’ benefits will outweigh their costs. Finally, ICT will help the company to implement its just-in-time management strategy and to close the gap between supply and demand.
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