In this report of Dynaco company and its products will be discussed relate to the supply chain. Information will be collected via quantitative research method. This report also details different parties and their roles of the supply chain, and their nature of relationships established in the process of international trade. For example, the relationship between suppliers and manufacturer of the supply chain. Finally, discuss several risks and challenges that the company had faced when doing trade and how to solve them in properly ways. In manufacturing and distribution, the company is involved in every stage upon manufacturing operation from purchasing raw material to production and packing. Its extensive skills encompass all aspects of production and supply, including order fulfillment, product’s quality control and production flexibility.
Supply chain management (SCM) is a process used by companies such as Dynaco to ensure that their supply chain is efficient and cost-effective. A supply chain is the collection of steps that a Dynaco company has taken to transform raw components into the final product. Typically, supplychain management is comprised of five stages: plan, develop, make, deliver, and return.This showthe company overview of products supply chain and how they differ from one company to the other, Suppliers are the first stage of supply chain. Generally, suppliers are responsible for purchasing and procurement operations in supply chain, raw materials or natural resources are purchased by suppliers for which a company’s needs to procure goods or services that are required to manufacture a product. Distributors no longer focused on long term storage of inventory in static warehouses, it provides a variety of capabilities for the supply chain.’ The goal of distributor is to serve the supply chain quickly and accurately.
Distributor can be regarded as a transshipment point in supply chain. In supply chain, manufacturers are responsible for receive raw material or natural resources from suppliers, and then produce finished goods through manufacture procedure. Retailers and customers are regarded as the final stage of the supply chain. In commerce, retailers buy a large amount of finished goods or products from manufacturers, and then sell small quantities to customers (the end user).
The company is not doing the supply chain by them self but collaborate with other suppliers and distributors. The company implement the focus strategy and it focus on cost segment. The company believes that focus strategy providing better goods and services than competitors who do every stage of the supply chain. As a manufacturer, the company does not have enough capital to build and operate its own supply stations and distribute centers. For manufacturing Dynacomust purchase raw materials from suppliers for production of goods. Base on the focus strategy, it pays suppliers to implement the process of gather raw material. It raises costs but at the same time, it improves production capacity of Dynaco company, because the company has more time and human resource to work at manufacture process. On the other hand, the manufacturer must make sure that are several suppliers who are available in the supply chain. For example, lack of materials, due to catastrophic phenomena, one of the suppliers cannot deliver material to the manufacturer, there are other suppliers as substitutes. Furthermore, Dynaco company has implement Just-In-Time manufacturing system when it collaborates with suppliers. As the demand of production is not clear, it increases productivity, work performance and product quality, while saving costs.
Distributors act a vital role between manufacturers and consumers. Dynaco company is focusing on manufacture and left the delivery and storage section for its distributor.
Dynaco company is selling goods and holders, its distributors can design a special package for storage, and provide efficient delivery and often lower costs. Furthermore, Dynaco company realize that distributors are both business partners and customers, they are not just sells product and managing inventories, but also provide aftermarket services. Hence, Dynaco collaborates with domestic and international distributors to sell its products.
Some challenges experience by this company include Long distance transportation, payments etc. In distance transportation this happens in every business when exporting their products. Due to the long distance from manufacturer to retailers/customers, situations of lack of supply and bad quality of products are always emerged
PaymentWhen a company doing trade, there is no payment methods is 100% safe. Even the company receive deposit of an order, if buyer refuses to pay the rest of amount of the order, it still occur a loss of the company. To reduce the risk when trading, the company must verify buyers’ contact details and address, background and legal registration number.
To summaries, a supply chain has three key parts: supply, manufacturing and distribution. Suppliers, manufacturers, distributors and retailers/customers play different roles in the supply chain. Suppliers provide raw material for manufacturers to produce finished goods/products for distributors, and then store them and deliver to retailers/customers. After analysis, distributors act as business partners of manufacturers and sellers in the process of international trade. Moreover, solutions of challenges that the company faced in the process of international trade are illustrated. International trade provides opportunities for business to expand their markets for goods and services, but also provides risks and challenges at the same time.