Case Study: Supply Chain Management
Do you think it was ethical on JOSH’s part to eliminate the entire distribution structure without passing on the benefits to Seth Dammar? In my opinion it was not ethical on JOSH’s part to eliminate the distributors from the chain without passing the benefits to Seth Dammar. The main diplomatic reason which could have been explained by JOSH to make the decision of removing the distributors may be: * Increasing the efficiency of the supply chain In terms of the time that Is taken by the product to reach the customers by removing one Intermediate.
From customer’s point of view a faster service could be achieved on a lower cost by removing the margin that the distributors enjoyed. Aforesaid reasons seem to be correct keeping the customers in perspective.
But supply chain consists of various components Including suppliers, manufacturers ,logistics ,deliberators ,retailers etc. And each one of them play an important role. For example, taking up the role of distributors, they not only helped in distribution of the product but also helped RD to help them deciding the carrier to a particular destination district.
Thus, each other’s roles are facilitated in a way or other by each other. Also maintaining relationships and reputation is very important for business. Removing the whole distribution structure would pips off the distributors as this is the way of Income for their livelihood and there would be new challenges that RD would face.
New challenges always require new structure and new workforce to deliver the same quality. RD would have added responsibilities and complexities for which they would require additional labor and staff for the same laity of services and that would incur additional cost.
Even if JOSH is committed to better and cheaper services to their customers they need to understand the requirements of RD and share benefits with them to achieve the goal of efficient and better services In practicality 2. What would have been your course of action as Seth Dammar in reaction to JOSH’s restructuring? First of all, I would have tried to understand the reasons that drove JOSH to do the restructuring as if they are starting a new and efficient era of apply chain or they want to sell the products at a cheaper price to Increase the number of customers or their motive is Just to Increase their profits.
I would have tried to analyze these options on the basis of emerging changes In technology, market competition, consumer behavior etc. Then, I would have tried to analyze the small-term and long-term effects of restructuring on my business.
The small-term effects involve relationship with the distributors and losing their support which facilitate my operations, increased complexity and the requirement for addition labor ND staff. The long-term effects Involve a better reputation for being adaptive to structural changes and delivering quality services In changing scenarios which might attract new customers Tort Logistic solutions.
I would also nave well e n a ten terracotta between less immediate benefit and possible long term benefits of possibility of getting new customers because handling the operations of JOSH was a prestigious affair. If I give up that would give an edge to my competitors. However, increased complexity in operations at same cost might affect the quality of service.
And when the competition is tough it is important to maintain the quality of service to maintain the reputation.
As I am at the stage where I am handling the reins of the business to my sons and nephews it would be important to provide them with sufficient resources during increased complexities. Thus, I would have tried to have an immediate renegotiation with JOSH regarding the extra cost incurred for the complexities. Having good networking skills I would have tried to make JOSH understand that maintaining quality of service is very important specially during undergoing restructuring to continue to enjoy the same reputation in market.
I would have given the example of why I did not consider extending my business to warehousing and transportation like my competitors to maintain the service that my company has provided over the past 100 years.
Thus, I would have tried to achieve renegotiation to help me in providing the best available service in the market. In case JOSH would not have agreed I would have waited for the next 8 months for new customers. If it would not happen I would have given up the operation of JOSH after 8 months.