Italian SME footwear company (Supply Chain and Logistics Management) Assignment

Italian SME footwear company (Supply Chain and Logistics Management) - Assignment Example The firm therefore adapted the use of third-party logistics functions. In the modern business age, the global environment has become very competitive requiring companies to deal with several different sources so as to ensure customer satisfaction as well as their own success. Such competitiveness is what has called for strategic plans such as use of third party logistics providers (Rodrigo 2012: 12).With such an approach, one has to look at both the benefits and disadvantages of the approach. In covering the benefits, it isnecessary to evaluate whether such decisions would be easily assimilated by the company.That is, issues such as product availability, labor force, meeting of customer expectations the third party logistics capabilities would have to be considered, amongst others that may arise in the process.Supply chains do not only involve materials, logistics, ICT and facilities but also include people in charge of operations or people involved in the chain operations. Thus, a m anufacture should always consider â€Å"supplying people† when designing the supply chain. That is, considering the right human expertise in the supply chain. Question 1 In analysis and evaluation of the Baldinini srl strategy, major focus will be on the effect towards the company’s performance. ... ms of inventory management, Baldinini stands a chance of lowering costs associated with storage, moving in and out of their products into the inventory. Most of all, the company is lifted off the burden of tax accumulation generated by increasing value of products included in the inventory. It becomes way affordable and manageable to hire a 3pl provider. In terms of company and customer relationships, the end receivers of Baldinini products fail to realize the company, this works negatively for Baldinini. Question 2 Traditionally, several companies have seen their advantage in competitiveness as a derivative from their product or services that they provide. With time, however this has changed as products and services become replicated by the day (Keifer, 2012).This possesses a greater risk of competing with counterfeits causing companies to shutter in their own market place. Several companies now no longer see their competitive advantage as a result of their products and services but as a result of how they run their businesses (Keifer, 2012). Supply Chain Management (SCM) plays a specific role in meeting customer demands, developing strategies, proper management of inventory, control of production orders and also maximization of customer fulfillment. One fundamental of SCM is the SCM Objectives. Supply chain management aims to meet rising customer demands or increase it in target markets. It also includes optimization of the supply chain with as minimum cost as possible, Nitl (2008).This approach maintains that a company should clearly understand their customer needs and also have a clear view of their market place. By having the objectives figured out, a company already possesses upper hand in the market place.By doing so, a company eliminates unnecessary activities