Supply Chain Management- MGMT614
Assignment No. 2
A shoe manufacturing company has a good brand image in the market; due to the current pandemic situation, it facing problems maintaining its profits and retaining customers. Over time, the CEO realized that managing contracts and disruptions from suppliers’ side adds more costs and deteriorating quality. In response to this issue, the CEO decides to control inputs to their production chain by acquiring its supplier. This way company would have a competitive advantage over its competitors to maintain cost and quality. Afterwards, the company decided to control its distribution channel further to deliver the products to its retail stores. Because since last six months company is receiving many complaints regarding outlet owners’ irresponsible behaviours towards the customers and hurting brand image adversely. To resolve this issue, the CEO is left with no choice but to manage its distribution channel. Consequently, the company successfully managed to control raw materials supply and distribution of finished goods.
As a CEO, which strategies would you implement to control supply and distribution channels? Justify your answer with logical reasoning.