Strengthening Household Appliances Supply Chain Risk Management - Essay Sample

Introduction

Project objective: The purpose of this proposal is to propose an agenda that is in line with the genuine concerns of the supply chain management of the household appliances.

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Project background: The household appliances supply chain has the understanding of the pricing mechanism and how it is linked to the risk control. It is such that if there is a risk being transferred to the supplier, the price is reflected and there is no adjustment mechanism for the same if the risk occurs and has an impact on the cost base of the supplier.

Thesis statement: the pricing mechanism is controlled by the contractual authority and it determines the application of pricing in terms of its dimensions such as the projects and services as well as how they are linked with the low-end household appliances supply chain.

Project description: Theory and Methods

The modern economy tends to rely on the smooth operations of supply chains. There are many delivered benefits from the ability to move the appliances, and finished produces efficiently and timely. The focus goal in the supply chain is to:

• Reduce the cost of manufactured goods
• Improvement access to advanced technologies
• Opening new markets
• Opening new business opportunities for producers.

In the recent days, modern supply chain for household appliances have become vulnerable. There have been several issues in the chain, which include delays in the transportation, natural disasters, instances of cyberattacks, and unexpected issues with quality that are able to disrupt the flow of cargo hence creating challenges with delivery, and other short-term unnecessary costs (Larsson & Kamal, 2019). However, there are ways to ensure that the pricing mechanism takes care of the risks associated.

Proposed interventions: Progression towards Supply Chain Management Excellence

Collaboration

The need for collaboration means working together with other parties. It is in a bid to create value that the sole effort of one party cannot create. The entire supply chain has to have a strategic pricing mechanism that deal with the risk of trade wars. There have been global tensions leading to imposition of new import tariffs on household appliances. Collaboration will help to ensure that members of the supply chain pursue strategies that are highly globalized (Tang, 2006). Having a robust strategy will help firms manage instances of regular fluctuations efficiently regardless of major disruptions.

Collaboration is the lever of excellence dealing with evidence-based knowledge. It requires a summary of knowledge gaps and the highest priority knowledge needs are inclusive of supply chain collaboration governance, and objectives concerning profits. Research is required to examine if the collaboration is on the basis of failure so as to assess the full set benefits accruing to each party.

Information

There are specifics that the supply chain parties should be aware. They include mattes of customer demand, prices and also costs so as to avoid making flawed decisions. Parties tend to underestimate the risk of economic uncertainty and structural change hence don't communicate for accurate supply chain risk assessment (Haughton, 2016). When there are inaccurate estimates concerning the probability of major disruptions, it is difficult to perform cost-benefit or return on investment.

When there is improved information quality, there are improvements in other areas such as product quality, managerial decisions, flexibility of the supply chain, and the logistic operations as well. Parties in the supply chain should be aware of what works for them such as the traditional structured data or other data mining analytics.

Technology

The supply chain of household appliances requires technology in terms of the particulars in the level of sophistication of physical equipment, procedures and information systems (Ranganathan, Ye, & Jha, 2013). These elements are used to facilitate the supply chain activities hence mitigating the risk of industrial unrest. Pricing mechanisms that are technology based help to deal with industrial actions that are in a perennial risk in transport operations of the appliances.

Talent

The supply chain management should ensure talent is reflected by the expertise of personnel that is responsible for the activities. Talent breeds resilient supply chains, which enable the firm to deploy the associated contingency plans efficiently in the face of a disruption (Government commercial function 2019). The continual evolvement of the supply chain risk environment is to mean that there is the need for more talent among parties. Parties should value the structuring of employees in their jobs so that there is a right balance between getting optimum productivity and providing opportunities to nurture the leadership skills.

Project Conclusion: Conclusion

The pricing mechanism is controlled by the contractual authority and it determines the application of pricing in terms of its dimensions such as the projects and services as well as how they are linked with the low-end household appliances supply chain. The paper proposes an agenda that is in line with the genuine concerns of the supply chain management of the household appliances. The progression towards supply chain management excellence has the agendas such as collaboration, information, technology and talent.

References

Government commercial function (2019). Payment mechanisms and risk allocation. Outsourcing guidance note. Retrieved from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/780059/20190220_PaymentMechanismsAndRiskAllocationGuidance.pdf

Haughton, M. (2016). A Proposal for Supply Chain Management Research That Matters: Sixteen High Priority Research Projects for the Future. Retrieved from https://scholars.wlu.ca/cgi/viewcontent.cgi?article=1003&context=busi_faculty

Larsson, T., & Kamal S., (2019). The top 10 supply chain risks of 2019. Retrieved from https://www.supplychainquarterly.com/topics/Strategy/20190514-the-top-10-supply-chain-risks-of-2019/

Ranganathan, C., Ye, C., & Jha, S. (2013). Market value impacts of information technology enabled supply chain management initiatives. Information Resources Management Journal (IRMJ), 26(3), 1-16. Retrieved from https://www.semanticscholar.org/paper/Market-Value-Impacts-of-Information-Technology-Ranganathan-Ye/fa497558ff6f6c9162ee5aa989037618cae54fed

Tang, C. S. (2006). Robust strategies for mitigating supply chain disruptions. International Journal of Logistics: Research and Applications, 9(1), 33-45. Retrieved from https://www.tandfonline.com/doi/pdf/10.1080/13675560500405584