The Cases of Durable Industries and Schlumberger Essay

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Supply Chain Management Case Studies

Case Takeaways

The case study provides several takeaways (Dittmann, 2013); four of the most important, along with an explanation regarding why they are important are as follows;

Ongoing monitoring and assessment should take place, reviewing both performance and measurements utilised, this is an important takeaway as it has been the inefficient supply chain that resulted in a Durable Industries losing a significant level of business, and a threat of losing more.

There should be an integrated approach to supply chain management with inputs from different departments. The management of the supply chain requires inputs from many departments such as sales for forecasting data and operations management. Without collaboration and integration of inputs the supply chain may not be optimised.

The firm should assess the supply chain from the perspective of customers. This is important as it is well established that firms need to satisfy customer needs to retain business (Kotler & Keller, 2011). Unless the firm are able to collect and assess customer needs, and their options of their service, they can ensure they are meeting their needs.

4. There should also be a comprehensive assessment of industry influences and best practices; this was chosen as the firm operates in a competitive environment, where it is important not only to look at ways in which changes are occurring to remain up-to-date.

Part B

Each of these takeaways can be discussed.

1. Ongoing effective monitoring was a failure of Durable Industries which lead to the loss of business. The monitoring failed on two counts. Firstly, there was the failure to include all the data in the monitoring that was taking place; the subsequent analysis indicated up to 25% of all orders were not being tracked (Dittmann, 2013).

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This is a significant gap. Secondly, mooting of supply chain metric in terms of the industry was also lacking, the result was the firm becoming less efficient compared to competitor, with a slower inventory turnover, which has increased opportunity costs.

2. Integrated supply chain management can increase efficiency, and therefore overall performance (Stadtler, 2014). For example, data is needed from different departments to manage the process through the supply chain, including accurate forecasts from the sales department, production schedules and timing from operations, and effective logistics (Christopher, 2011). Invariably, the various information, and actions/presses, often undertaken by different departments. Where there is a high level of cooperation and integration, there is a great potential for efficiency. Conversely, a lack of integration can result in fragmentation causing bottlenecks, delays, and misunderstanding.

3. Assessing the supply chain from the perspective the customer is essential; if a customer is not satisfied, they will leave make purchases elsewhere. Firms like to shame they know what customers want, and what they are providing them, but this is a short-sighted approach, even if it was true a year ago, customer needs may change (Stadtler, 2014). Therefore, to maintain customer satisfaction, and customer loyalty, the supply chain needs to be managed carefully.

4. Assessing external influences requires a consideration of general influences which may impact on the way upstream supply or downstream supply factors may manifest, allowing organisations adapt (Christopher, 2011). Furthermore, it is essential to ensure the company what the competition is undertaken, as well as potential opportunities which arise. Tours, such as SWOT and PEST can be useful, as well as the….....

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